Earlier this year, the Colorado Legislature passed a law requiring brokers to use contracts and forms – including leases and property management agreements – approved by the Colorado Real Estate Commission or drafted by a Colorado licensed attorney. This clears up some past confusion amongst many brokers about whether it’s acceptable to draft your own forms or use those downloaded for free on the internet – the new law states, unequivocally, that you cannot.
The biggest impact is on leases, property management agreements and other rental-related forms, which now must disclose that the form is not a Colorado Real Estate Commission Approved form, and that it was drafted by a law firm or attorney for use by the broker.
The law went into effect July 1, 2017 and defines a standard form as one which meets one or more of the following criteria:
- Approved by the Colorado Real Estate Commission;
- Drafted by a Colorado attorney;
- Provided by a party to the transaction;
- Prescribed by governmental agency; or
- Approved by the Colorado Bar Association.
To be compliant the form must contain a statement that it was drafted by an attorney for the broker.
The law applies only to Colorado real estate brokers and landlords who are required to hold a broker’s license; it does not apply to landlords who own and manage their own property.
The best way to ensure your forms and contracts comply is to work with an attorney well-versed in Colorado real estate law, like those at Robinson & Henry. Give us a call today to get started.