2019 ACU Has Launched

Each year the Commission develops a four (4) hour Annual Commission Update Course that covers important information about recent regulatory changes and practice issues.

• All active real estate brokers are required to take the course each year and pass the exam.
• The course has important information about current statutes and rules promulgated by the Commission. You are strongly encouraged to take the course early in the calendar year.
• For information visit the Division's Real Estate Broker's Continuing Education page.

Approved Education Provider List for the 2019 Annual Commission Update Course

2019 Real Estate Manual Now Available

The 2019 Colorado Real Estate Manual (Unabridged Version) is available for purchase through LexisNexis. Each order for the print version comes with an eBook download at no additional charge.

The complimentary eBook allows you to carry the manual with you without any added weight, but with all of the benefit of a searchable digital manual for quick access to new information, statutes, rules, and position statements for the real estate industry.

Order the Real Estate manual online or call 1-800-223-1940.

Reminder for 2019: New Employing Broker Rule A-27 (Employing Broker Qualifications)

Effective January 1, 2019, a real estate broker cannot act as an employing broker without having first demonstrated that the broker possesses the experience and knowledge sufficient to enable the broker to employ and adequately supervise other brokers, as appropriate to the broker’s area of supervision.

More details

As the CAM Program rounds out the first half of its third year, the Division is noticing ongoing issues regarding licensee compliance with insurance and management agreement requirements. Specifically, there has been noticeable non-compliance with maximum deductibles regarding insurance requirements and frequently missing minimum required items in management agreement. As we enter 2019, take some time to review CAM Rules D-9, D-10, and F-6, in order to ensure you remain compliant.

As a reminder, the rules listed above state the following (in summary)

D-9 – Errors and Omissions Insurance Coverage Requirements

Errors and Omissions insurance coverage amounts must not be less than $1,000,000 per covered claim, with an annual aggregate limit of not less than $1,000,000. The deductible on the policy must not exceed $5,000. If a deductible larger than $5,000 is requested, the CAM may deposit such deductible sum exceeding $5,000 in an approved bank account assigned to the Colorado Division of Real Estate.

D-10 – Crime Fidelity Insurance Coverage Requirements

Crime Fidelity insurance coverage amounts must not be less than in aggregate than two months of current assessments, plus reserves, for all common interest communities managed. The deductible on the policy must not exceed one percent of the total coverage amount.

F-6 – Management Agreements

Management agreements must include the following items:

(a) Beginning and ending dates of the contract;

(b) Details of all compensation, fees and charges;

(c) Cancellation rights of the parties;

(d) Record retention and distribution policy (the agreement must state the statutory 3-year retention requirement, and must contain a record distribution policy which details the process for record requests by homeowners and other interested parties);

(e) Errors and Omissions insurance coverage (the agreement must mention the licensee’s E&O coverage and list coverage amounts);

(f) Crime Fidelity insurance coverage (the agreement must mention the licensee’s crime fidelity insurance coverage and list coverage amounts);

(g) A general description of the records to be kept and the accounting or bookkeeping system to be used. The agreement must contain language providing a general description of the association records which the licensee will maintain as well as language describing the accounting or bookkeeping system to be used (i.e. will the accrual or cash method of accounting be used, or some other generally accepted accounting principle?); and

(h) The designated manager’s license number.