Division of Real Estate Bimonthly Notification, May, 2023

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Division of Real Estate Bimonthly Notification

May, 2023

For Division Interested Parties and Licensed Professionals

The Division of Real Estate's bimonthly email is designed to provide Division news, information on upcoming public meetings, rulemaking hearings, and registration links for educational webinars. Additionally, licensed professionals can find updates on licensing deadlines, opportunities for stakeholder engagement, and important practice guidance matters.

Clarification of Rule 6.17. Narrative in the “Broker-Owned Properties Managed by the Broker” Article in the Spring 2023 Quarterly Newsletter Issued on 04/13/2023

On 04/13/2023, the Division published its Spring, 2023 Quarterly Newsletter which included a staff article labeled, “Broker-Owned Properties Managed by the Broker”. This article addressed certain trends noticed in audits conducted on brokers managing their own properties.

Additionally, the article provided an overview and highlight of the sections of license law that brokers need to consider when managing their properties including:

• Rule 5.11 – Money Belonging to Others for Non-Real Estate Brokerage Services
• Rule 6.5 – Brokerage Relationship Disclosures in Writing
• Rule 6.17 – Duty to Disclose Conflict of Interest and License Status
• Rule 7.1 – Standard Forms

The Division wanted to provide additional clarification regarding what was written under Rule 6.17. – Duty to Disclose Conflict of Interest and License Status section. 

Under that section, it states in part, 

“Without exception, a disclosure needs to be made in writing that the broker is both an owner of the property and a licensed broker. Often, disclosures within the lease will state that the landlord is a licensed broker, and this is not sufficient. A broker can be a landlord and not an owner, therefore, a licensed broker who is also an owner needs to disclose both the true conflict of interest (ownership) and their license status. Some brokers have added this language onto the [Brokerage Disclosure To Tenant], which is sufficient and ensures timely disclosure.”

Announcements & Meetings:

To clarify this point, it does not suggest that disclosure within the lease is not sufficient, but rather that disclosing that the “landlord” is a licensed broker is not sufficient. To be clear, license status and conflict of interest disclosures contained within the lease are acceptable. The term landlord is not inclusive of property ownership.  If a broker is both the owner of the property and the landlord, that disclosure needs to be clear.  It would be sufficient to indicate within the lease, or a separate concurrent writing, that “the owner, who is also the landlord, is a licensed Colorado real estate broker” or “the owner, who is the landlord, has a Colorado real estate broker’s license”.   

Foro Asociación de Propietarios: Que saber antes de comprar en una HOA (Asociación de Propietarios) (Edición en Español)

HOA Forum: Buying in an HOA-What to Know (Spanish Language Edition)

¿Está pensando en comprar una casa en Colorado? Tal vez se ha reunido con un agente de bienes raíces y miró algunas propiedades potenciales. En particular le encantó una que tiene muy bonita apariencia, está perfecta, con una piscina grande, un jardín bonito y muy bien mantenida.

Pero usted sabía que la propiedad qué tanto le encantó es parte de una asociación de propietarios? (HOA) Sabia que hay evaluaciones mensuales obligatorias en una asociación? Usted sabe que hay reglas y regulaciones de vivir en una HOA, y cuales son?

Venga y únase con Amanda López y Nick Altmann del Centro de Recursos de Información de la Asociación de Propietarios de Viviendas, para una presentación en Español sobre una descripción general de las asociaciones de propietarios en Colorado (HOA) y qué esperar antes de comprar una propiedad en una asociación de propietarios HOA

Viernes, 19 de mayo de 2023, a la 1:00 PM

Regístrese para el evento aquí:

En nombre del Centro de Información y Recursos de la Asociación de Propietarios, esperamos que se una a nuestra presentación.

This HOA Forum will be presented in Spanish

Are you thinking about buying a home in Colorado? Maybe you met with a real estate agent and looked at a few properties. In particular, you love the look and feel of one. The community park and community garden are perfect...everything is so green and well-maintained! There is even a swimming pool! You know this is THE ONE. It is perfect!

But did you know the property is part of a homeowners’ association (an “HOA”)? Do you understand that there are mandatory monthly assessments? What are all these Rules & Regulations?

Join Amanda Lopez and Nick Altmann from the HOA Information & Resource Center for presentation in Spanish of a high-level overview of HOAs in Colorado and what to expect when buying property in an HOA.

Friday, May 19, 2023, at 1:00 PM (MT)

You may register for the event here: 

On behalf of the HOA Information & Resource Center, we look forward to you joining us.

Note: If you are unable to attend, the HOA Information & Resource Center posts a recording of the webinar within a few days following the presentation. 

Colorado Division of Real Estate  1560 Broadway, Ste. 925 | Denver, Co 80202 Phone: (303) 894-2166 /(800) 886-7675 | Fax: (303) 894-2683 Email: dora_realestate_website@state.co.us

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