Recently CAR’s Legislative Policy Committee reviewed recommendations included in the 2016 Sunset Review for real estate brokers and subdivision developers. The report was submitted to the legislature, which is responsible for introducing related legislation in the 2017 session.
As expected the Department of Regulatory Agencies recommends the continued regulation of real estate brokers for another 10 years. This is good news. However, some of the other recommendations could be cause for concern. For example, the second recommendation suggests changing language in statute that seems semantic but could have big implications.
Section 12-61-803(4) of Colorado Revised Statutes currently reads, “A broker licensed pursuant to Part 1 of this article, whether acting as a single agent or transaction-broker, may complete standard forms including those promulgated by the Colorado real estate commission and may advise the parties as to effects thereof …” The recommendation would revise this section to read “A broker licensed pursuant to Part 1 of this article, whether acting as a single agent or transaction-broker, may complete forms promulgated by the Colorado real estate commission and may advise the parties as to effects thereof…” The intent of the recommendation is eliminate the use of nonstandard forms, but CAR Attorney Scott Peterson believes it could lead to a bigger role for attorneys in real estate if this recommendation is adopted.
Some other notable recommendations include a property manager endorsement for brokers who lease and manage rental properties, increasing managing broker education requirements and creating a more efficient licensing system by using one date — December 31—for license expirations. CAR is reviewing the report closely and will be prepared to argue its positions when a bill is introduced in response to the report in late January or early February.