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Quarterly Newsletter - Autumn 2023 |
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Real Estate - Public Calendar
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Stay Up To Date With Us!
Division Meetings and Events
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Sign Up For A Webcast
The Division of Real Estate makes an effort to have all public meetings and educational opportunities live and accessible to the public by signing up for a webcast.
Find the meeting or event you want to attend on the calendar, click on the “more details” and follow the directions to sign up for the webcast.
DRE YouTube Channel
Have you checked out our YouTube channel yet? You can find webinar recordings, educational videos, bite-sized advisory videos and watch various LIVE hearings and board & commission meetings. Subscribe to @DORADivisionRealEstate and never miss our most current content!
Attend An HOA Forum
The HOA Information & Resource Center offers free webinars on a variety of topics throughout the year. Learn about helpful resources and join in the conversation about your rights and obligations while living in an HOA community. Topics and locations change monthly. Visit the Division calendar to sign up!
Unable to attend? The HOA Information & Resource Center posts webinar recordings at the following link:
https://dre.colorado.gov/recent-hoa-forums
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Upcoming Department Meetings:
HB23-1105 Homeowners' Rights Task Force Meeting:
HOA Forum: Reserve Funds
Board of Real Estate Appraisers (BOREA) Meeting & Rulemaking Hearing:
Board of Mortgage Loan Originators (MLO) Meeting:
Colorado Real Estate Commission (CREC) Meeting:
Board of Real Estate Appraisers (BOREA) Meeting:
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Brokerage Disclosures vs. Definitions of Working Relationships – What is the Difference?
This is a question that comes up regularly for brokers, particularly when they are being audited by the Real Estate Commission. Which form is required, why is it used and when must the disclosure be made? Brokerage Disclosures (to Buyer, Seller, Tenant, or Landlord) are designed to put the consumer on notice that the broker they are interacting with in that instance is not acting as an agent for the consumer. Commission Rule 6.5-Brokerage Relationships Disclosures in Writing states:
- Written disclosures pursuant to 12-10-408, C.R.S. must be made to a Consumer prior to eliciting or discussing confidential information from a Consumer for Real Estate Brokerage Services.
- Such activities do not include preliminary conversations or “small talk” concerning price range, location and property styles, or responding to general factual questions from a potential Consumer concerning properties which have been Advertised for sale or lease.
Consider these examples of when a Brokerage Disclosure would be required:
Example 1: Broker Steve receives a call from Buyer Dave wanting to see the property for sale at 1234 Mountain Lane. Broker Steve is the Seller’s Agent for the seller of the property and agrees to the meet Buyer Dave there for a showing. Upon arrival, Broker Steve provides Buyer Dave with a Brokerage Disclosure to Buyer. This puts Buyer Dave on notice that Broker Steve represents the seller and will be treating Buyer Dave as a customer.
Example 2: Broker Steve receives a call from Buyer Janet wanting to see 2534 Scenic Vista Drive. Broker Steve is not the listing agent of this property, and he has no relationship with Buyer Janet. He agrees to schedule a showing for Buyer Janet to view the property. Buyer Janet is not interested in signing a contract to work with Broker Steve at this time, she just wants to view the property. Broker Steve would present Buyer Janet with a Brokerage Disclosure to Buyer so that Buyer Janet is aware that they do not have an agency relationship.
If a broker goes on a listing appointment, and the consumer signs a listing agreement during that appointment to work with the broker, we would not expect to see a Brokerage Disclosure form because the Commission-approved listing contracts meet the disclosure requirements set forth in the laws and rules. (Read More)
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License Renewal Season Starts November 1, 2023
The Division of Real Estate license renewal period starts November 1, 2023 and continues through December 31, 2023. Expired licensees may not conduct any business that requires licensure. If your license is on an inactive status, you must still renew your license if you wish to maintain the inactive status and avoid any applicable reinstatement fees.
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Errors & Omissions Insurance Policy Renewal Reminder
The Division would like to notify all active licensees that many Errors & Omissions ("E&O") policies are set to expire on January 1, 2024, please review important renewal information prepared by the state contracted E&O carrier, Rice Insurance Services Center (RISC).
Most E&O policies expire on January 1, 2024. Please be advised that a full E&O audit of Real Estate Brokers will take place in February, 2024 to ensure compliance with the E&O insurance requirement.
If you are renewing a policy that expires on January 1, 2024, you must purchase the renewal before January 31, 2024 and the policy must be effective January 1, 2024 to be considered compliant.
See program-specific details below:
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Appraisal USPAP and Continuing Education Audit
The Division of Real Estate wants to take this opportunity to remind all active licensed and certified appraisers of their continuing education requirements.
A. The 7-hour USPAP course must be taken before the renewal is activated. Appraiser licensees should have received an email with instructions for submitting their 7-hour USPAP certificate.. This process began on October 1, 2023.
If you have any questions about the audit process, please contact the Division by email at dora_dre_appraisals@state.co.us.
It is recommended that licensees complete their USPAP audit submission as soon as possible, but no later than December 15, 2022, to allow sufficient time for processing and avoid a lapse in licensure. Renewal applications received after Friday, December 15, 2023, and prior to January 31, 2023, may be subject to the following:
- An indication on the Appraisal Sub-Committee (“ASC”) website that the license has expired (license will show inactive on the ASC's licensee search)
- An audit of all 28 hours of continuing education required during the license cycle
- Fines for any incomplete continuing education
- Penalty fees for license reinstatement if the CE certificate review moves beyond the January 31 renewal submission deadline
B. All other continuing education requirements for renewing licensees must be completed by December 31, 2023.
C. For all licensees, you might consider visiting the Appraiser Continuing Education Page linked below to review all approved continuing education courses, including the 7-hour USPAP course.
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House Bill 23-1105: HOA Homeowners' Rights Task Force Meeting
Created by HB23-1105, the HOA Homeowners' Rights Task Force will hold a public meeting via Webinar on October 24, 2023 at 3:00 P.M. (MT). The HOA Homeowners' Rights Task Force is created in the Department of Regulatory Agencies by section 24-34-101(1)(a), C.R.S. to examine issues confronting communities that are governed by the executive board of an association. Interested parties should register for the meeting at the following link:
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Please note that registration in the Zoom Platform is limited. You may also view the meeting live on the Division of Real Estate's YouTube.com channel:
The agenda for the Task Force meeting can be reviewed here:
In anticipation of the meeting, stakeholders and interested parties are encouraged to submit public comment to:
On behalf of the HOA Homeowners' Rights Task Force, we look forward to you joining us.
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New Colorado Real Estate Commission Forms
The Colorado Real Estate Commission ("CREC") is pleased to present latest Real Estate forms. The Division of Real Estate in collaboration with industry participants has updated several Commission approved forms for 2024. These forms are being presented for educational purposes on the website below and are ready to be implemented on January 1, 2024. Familiarize yourself with the forms now so that your practice is not interrupted on January 1, 2024.
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Understanding Competency in the Real Estate Broker Industry
Competency is a notion that many people can apply to others, but it might be hard to apply to themselves. It might be harder still for us to apply it to our own professions, whether we have been practicing for just a few months or even several years. Nevertheless, this self-reflection is important for a real estate licensee. Having the competency to properly advise and guide your client in order to protect their client’s interests is an important requirement for all licensees.
Unlike skills, which are learned, competency can be understood as inherent qualities which demonstrate the characteristics necessary for the efficient performance of a job. More often than not, competency is derived from formal training and experience.
There are several steps a real estate licensee can take to obtain the competency needed to properly perform their responsibilities in a transaction. (Read More)
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Tenant Radon Disclosure Form Is Available Through The Colorado Bar Association
In previous Division of Real Estate correspondence, the Division has informed licensees of the passage of SB23-206. This bill became law on August 7, 2023 and the Division released several updated contracts and disclosure forms to ensure that purchase and sale transactions comply with this new law after that date.
Real estate practitioners and, in particular, property managers may be interested to know that the Colorado Bar Association has prepared a useful form which is available for purchase in landlord/tenant transactions. A link to the Tenant Radon Disclosure Form can be accessed through the Division of Real Estate Contracts and Forms page under the Resource section of the page.
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From time to time, the Division of Real Estate receives information and requests from our affiliated agencies in state government. Please review the following messages below from our regulatory partners related to the practice of real estate.
Please find the announcements below:
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State Demography Summit, November 3, 2023
The State Demography Office is hosting its annual State Demography Summit on November 3, 2023, on the Arapahoe Community College Campus.
The State Demography Summit is a one-day conference hosted by the Colorado State Demography Office offering attendees the opportunity to learn about the most current population and economic estimates and forecasts for the state, its regions, counties, and municipalities.
6 hours of continuing education credits are available to Real Estate Brokers and Real Estate Appraisers through the Division of Real Estate, Colorado Department of Regulatory Affairs.
You can find more Information by going to the SDO State Demography Summit Page and clicking on the "2023 State Demography Summit: November 3, 2023" button. Registration is open October 2, 2023 9:00 a.m. to October 31, 2023 12:00 p.m.
You can register here:
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DOI Seeking To Fill Two Positions On Colorado Title Insurance Commission (TIC)
The Colorado Division of Insurance is seeking two applicants to fill two positions on the Colorado Title Insurance Commission (TIC). The TIC consists of nine members appointed by the Governor, including three title insurance company employees, three resident title insurance agent employees, and three residents representing the public-at-large. All members are eligible to serve for a maximum of two consecutive four-year terms. The commission meets at least four times per year. Two TIC representative positions will become available in November 2023. The Division seeks applicants possessing the following qualifications to fill these upcoming vacancies.
Two TIC representative positions will become available in November 2023. The Division seeks applicants possessing the following qualifications to fill these upcoming vacancies.
- A licensed employee of a title insurance company that has net admitted assets of $500,000,000 or more. The company representative shall not have less than five years’ experience in title insurance business.
- A Colorado-licensed, resident title insurance agent who is an employee of a licensed title insurance agent. The individual shall not have less than five years of experience in the title insurance business in Colorado.
The TIC’s duties include proposing, advising, and recommending rules for the administration of the business of title insurance, subject to approval by the Colorado Insurance Commissioner. Participation on the Commission offers a meaningful opportunity to help your community and gain valuable public service experience.
If you are interested in applying, please use the button below for the Boards and Commissions application website. Once on that website, select “Title Insurance Commission.”
Learn more about the TIC - its structure and activities - by visiting the Title Insurance for Industry website via the button below.
If you have any questions about this vacancy or the TIC, please contact Steve Giampaolo at stevena.giampaolo@state.co.us.
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State Laws More Stringent Than New Lender Guidance
A new multi-family radon policy was instituted on July 1, 2023 by lenders Fannie Mae and Freddie Mac, the Government Sponsored Enterprises (GSEs) overseen by the Federal Housing
Finance Agency (FHFA). This policy is less stringent than requirements adopted by Colorado’s Office of Radon Professionals, which follows protocols set forth by the American Association of Radon Scientists and Technologists (AARST).
The Office wants its licensees and lenders to be aware that Colorado requires compliance with AARST standards even when a lender’s requirements conflict. This means that full compliance with all applicable state and local laws governing radon testing and mitigation are required, even when the lender’s policy is more lenient.
Some of the major differences:
- The guidance doesn’t require licensed radon professionals conduct the testing
- The guidance only calls for testing of 25 percent of ground floor units, which doesn’t meet current ANSI/AARST protocols.
- The guidance doesn’t call for any testing on floors above the ground level, which also doesn’t meet current ANSI/AARST protocols.
View additional information regarding the radon statutes and regulations. Please address any questions to dora_directormodelprograms@state.co.us.
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HOA Information & Resources Center
The HOA Information & Resource Center offers HOA Forums monthly and are open to both licensees and the public. Stay tuned to the Division of Real Estate's Calendar for future HOA Forums and join us for our future webinars. You can also check out our recently published HOA Forums or our YouTube Channel.
Recent HOA Forums YouTube Channel
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HOA Forum: Reserve Funds
The HOA Information & Resource Center is regularly asked questions about reserve funds: What are they? Are there required minimum levels? How should the association invest the reserve funds? The Colorado Common Interest Ownership Act (“CCIOA”) addresses some of these issues, but not all. Whether you are a homeowner, a board member, or a Community Association Manager, understanding reserve funds is crucial to ensuring a financially sound and well-run HOA.
Join the HOA Information Officer to learn more about HOA reserve funds on Friday, October 27, 2023 at 1:00 PM (MT).
Presentation Details:
- Date: Friday, October 27, 2023
- Time: 1:00 p.m.-2:00 p.m. (MT)
- Location: Online Webinar Only
All are welcome to attend. You may register for the event here:
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Quarterly Discipline
This serves to inform the public of the current and/or most recent disciplinary action taken against the individuals listed. It does not, nor should it be intended to, serve as a complete listing of any and all discipline taken against the individual licensees.
Find the program you want to view by toggling through the tabs at the bottom of the spreadsheet.
To obtain a complete public disciplinary history for a specific licensee visit the Division's Records Management System and search a licensees personal record by name or license number.
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