January 30, 2017, marks the start of the new rule E-47, which requires a realtor to decline providing brokerage services should they lack the necessary experience. The new rule is a result of the Commissioners clarifying expectations on competency in regards to how Colorado real estate brokers conduct business. For a broker to stay compliant with this new rule, they must demonstrate familiarity with various requirements regarding real property sale and leasing, as well as geographical knowledge of the area. Should the broker decide to change markets by switching from residential to commercial properties, or conduct business in a new location, then the Commission expects the broker to obtain the knowledge needed through training and/or mentorship. Should the broker be unable or unwilling to do so, then it is expected that they decline the work. The ruling also includes that every broker stay current on new regulations within his or her market niche.
Denver LGBT couple wins housing discrimination lawsuit
On April 5, 2017, federal judge Raymond Moore found a landlord to be in violation of federal housing law by refusing to rent a townhome to a LGBT couple. The same-sex couple were hoping to secure housing in northwest Denver for themselves and their children. After meeting with the landlord, whom later wrote back to the couple citing noise concerns from the children as the reason for not renting to the family. Later in court, the landlord testified that the LGBT couple’s “unique” relationship would attract unwanted attention as the reason for the refusal. The judge found the landlord guilty of discrimination and extended protections to LGBT couples under the federal Fair Housing Act. This new case law sets a precedence for LGBT rights in Colorado and will have a resounding impact on the real estate community.
Colorado Division of Real Estate has announced that it has begun to audit CAM entities. These audits will focus on various insurance requirements for C.R.S., Errors and Omissions (E&O), and Crime fidelity, as outlined in rules 12-16-1004, D-9 and D-10, respectively. Audits will also focus on rule F-6 which stipulates that contracts, agreements, authorization and disclosures must be in writing.
To date, the CAM audits have found a few reoccurring issues. Make sure you don’t succumb to these common pitfalls by being aware of statute requirements. Three of the most common problems are:
- 99% of management agreements were missing required items as defined by rule F-6.
- 20% of crime fidelity insurance deductibles were not in compliance with rule D-10, by having a deductible greater than the maximum 1% of policy amount.
- 10% of crime fidelity insurance policies were not in compliance with rule D-10, by not adhering to the 2-month minimum assessment + reserves time period.