Real Estate

C.R.S. tit. 12, art. 10
in effect

C.R.S. § 12-10-101 Definitions

12-10-101. Definitions. As used in this article 10, unless the context otherwise requires: (1) "Director" means the director of the division of real estate. (2) "Division" means the division of real estate. (3) "HOA" or "homeowners' association" means an association or unit owners' association formed before, on, or after July 1, 1992, as part of a common interest community as defined in section 38-33.3-103.

C.R.S. § 12-10-201 Definitions

12-10-201. Definitions. As used in this part 2, unless the context otherwise requires: (1) "Commission" means the real estate commission created in section 12-10-206. (2) "Employing real estate broker" or "employing broker" means a broker who is shown in commission records as employing or engaging another broker. (3) "Limited liability company" shall have the same meaning as it is given in section 7-80-102 (7). (4) "Option dealer" means any person, firm, partnership, limited liability company, association, or corporation that, directly or indirectly, takes, obtains, or uses an option to purchase, exchange, rent, or lease real property or any interest therein with the intent or for the purpose of buying, selling, exchanging, renting, or leasing the real property or interest therein to another or others, whether or not the option is in that person's or its name and whether or not title to said property passes through the name of the person, firm, partnership, limited liability company, association, or corporation in connection with the purchase, sale, exchange, rental, or lease of the real property or interest therein. (5) "Partnership" includes, but is not limited to, a registered limited liability partnership. (6) (a) "Real estate broker" or "broker" means any person, firm, partnership, limited liability company, association, or corporation that, in consideration of compensation by fee, commission, salary, or anything of value or with the intention of receiving or collecting such compensation, engages in or offers or attempts to engage in, either directly or indirectly, by a continuing course of conduct or by any single act or transaction, any of the following acts: (I) Selling, exchanging, buying, renting, or leasing real estate, or interest therein, or improvements affixed thereon; (II) Offering to sell, exchange, buy, rent, or lease real estate, or interest therein, or improvements affixed thereon; (III) Selling or offering to sell or exchange an existing lease of real estate, or interest therein, or improvements affixed thereon; (IV) Negotiating the purchase, sale, or exchange of real estate, or interest therein, or improvements affixed thereon; (V) Listing, offering, attempting, or agreeing to list real estate, or interest therein, or improvements affixed thereon for sale, exchange, rent, or lease; (VI) Auctioning or offering, attempting, or agreeing to auction real estate, or interest therein, or improvements affixed thereon; (VII) Buying, selling, offering to buy or sell, or otherwise dealing in options on real estate, or interest therein, or improvements affixed thereon, or acting as an "option dealer"; (VIII) Performing any of the foregoing acts as an employee of, or on behalf of, the owner of real estate, or interest therein, or improvements affixed thereon at a salary or for a fee, commission, or other consideration; (IX) Negotiating or attempting or offering to negotiate the listing, sale, purchase, exchange, or lease of a business or business opportunity or the goodwill thereof or any interest therein when the act or transaction involves, directly or indirectly, any change in the ownership or interest in real estate, or in a leasehold interest or estate, or in a business or business opportunity that owns an interest in real estate or in a leasehold unless the act is performed by any broker-dealer licensed under the provisions of article 51 of title 11 who is actually engaged generally in the business of offering, selling, purchasing, or trading in securities or any officer, partner, salesperson, employee, or other authorized representative or agent thereof; or ess or business opportunity that owns an interest in real estate or in a leasehold unless the act is performed by any broker-dealer licensed under the provisions of article 51 of title 11 who is actually engaged generally in the business of offering, selling, purchasing, or trading in securities or any officer, partner, salesperson, employee, or other authorized representative or agent thereof; or (X) Soliciting a fee or valuable consideration from a prospective tenant for furnishing information concerning the availability of real property, including apartment housing that may be leased or rented as a private dwelling, abode, or place of residence. Any person, firm, partnership, limited liability company, association, or corporation or any employee or authorized agent thereof engaged in the act of soliciting a fee or valuable consideration from any person other than a prospective tenant for furnishing information concerning the availability of real property, including apartment housing that may be leased or rented as a private dwelling, abode, or place of residence, is exempt from this definition of "real estate broker" or "broker". This exemption applies only in respect to the furnishing of information concerning the availability of real property. (b) "Real estate broker" or "broker" does not apply to any of the following: (I) Any attorney-in-fact acting without compensation under a power of attorney, duly executed by an owner of real estate, authorizing the consummation of a real estate transaction; (II) Any public official in the conduct of his or her official duties; (III) Any receiver, trustee, administrator, conservator, executor, or guardian acting under proper authorization; (IV) Any person, firm, partnership, limited liability company, or association acting personally or a corporation acting through its officers or regularly salaried employees, on behalf of that person or on its own behalf as principal in acquiring or in negotiating to acquire any interest in real estate; (V) An attorney-at-law in connection with his or her representation of clients in the practice of law; (VI) Any person, firm, partnership, limited liability company, association, or corporation, or any employee or authorized agent thereof, engaged in the act of negotiating, acquiring, purchasing, assigning, exchanging, selling, leasing, or dealing in oil and gas or other mineral leases or interests therein or other severed mineral or royalty interests in real property, including easements, rights-of-way, permits, licenses, and any other interests in real property for or on behalf of a third party, for the purpose of, or facilities related to, intrastate and interstate pipelines for oil, gas, and other petroleum products, flow lines, gas gathering systems, and natural gas storage and distribution; (VII) A natural person acting personally with respect to property owned or leased by that person or a natural person who is a general partner of a partnership, a manager of a limited liability company, or an owner of twenty percent or more of such partnership or limited liability company, and authorized to sell or lease property owned by the partnership or limited liability company, except as provided in subsection (4) of this section; (VIII) A corporation with respect to property owned or leased by it, acting through its officers or regularly salaried employees, when the acts are incidental and necessary in the ordinary course of the corporation's business activities of a non-real-estate nature (but only if the corporation is not engaged in the business of land transactions), except as provided in subsection (4) of this section. For the purposes of this subsection (6)(b)(VIII), the term "officers or regularly salaried employees" means persons regularly employed who derive not less than seventy-five percent of their compensation from the corporation in the form of salaries. -estate nature (but only if the corporation is not engaged in the business of land transactions), except as provided in subsection (4) of this section. For the purposes of this subsection (6)(b)(VIII), the term "officers or regularly salaried employees" means persons regularly employed who derive not less than seventy-five percent of their compensation from the corporation in the form of salaries. (IX) A principal officer of any corporation with respect to property owned by it when the property is located within the state of Colorado and when the principal officer is the owner of twenty percent or more of the outstanding stock of the corporation, except as provided in subsection (4) of this section, but this exemption does not include any corporation selling previously occupied one-family and two-family dwellings; (X) A sole proprietor, corporation, partnership, or limited liability company, acting through its officers, partners, or regularly salaried employees, with respect to property owned or leased by the sole proprietor, corporation, partnership, or limited liability company on which has been or will be erected a commercial, industrial, or residential building that has not been previously occupied and where the consideration paid for the property includes the cost of the building, payable, less deposit or down payment, at the time of conveyance of the property and building; (XI) (A) A corporation, partnership, or limited liability company acting through its officers, partners, managers, or regularly salaried employees receiving no additional compensation therefor, or its wholly owned subsidiary or officers, partners, managers, or regularly salaried employees thereof receiving no additional compensation, with respect to property located in Colorado that is owned or leased by the corporation, partnership, or limited liability company and on which has been or will be erected a shopping center, office building, or industrial park when such shopping center, office building, or industrial park is sold, leased, or otherwise offered for sale or lease in the ordinary course of the business of the corporation, partnership, limited liability company, or wholly owned subsidiary. (B) For the purposes of this subsection (6)(b)(XI): "Shopping center" means land on which buildings are or will be constructed that are used for commercial and office purposes around or adjacent to which off-street parking is provided; "office building" means a building used primarily for office purposes; and "industrial park" means land on which buildings are or will be constructed for warehouse, research, manufacturing, processing, or fabrication purposes. (XII) A regularly salaried employee of an owner of an apartment building or complex who acts as an on-site manager of such an apartment building or complex. This exemption applies only in respect to the customary duties of an on-site manager performed for his or her employer. (XIII) A regularly salaried employee of an owner of condominium units who acts as an on-site manager of such units. For purposes of this subsection (6)(b)(XIII) only, the term "owner" includes a homeowners' association formed and acting pursuant to its recorded condominium declaration and bylaws. This exemption applies only in respect to the customary duties of an on-site manager performed for his or her employer. (XIV) A real estate broker licensed in another state who receives a share of a commission or finder's fee on a cooperative transaction from a licensed Colorado real estate broker; (XV) A sole proprietor, corporation, partnership, or limited liability company, acting through its officers, partners, or regularly salaried employees, with respect to property located in Colorado, where the purchaser of the property is in the business of developing land for residential, commercial, or industrial purposes; on a cooperative transaction from a licensed Colorado real estate broker; (XV) A sole proprietor, corporation, partnership, or limited liability company, acting through its officers, partners, or regularly salaried employees, with respect to property located in Colorado, where the purchaser of the property is in the business of developing land for residential, commercial, or industrial purposes; (XVI) Any person, firm, partnership, limited liability company, association, or corporation, or any employee or authorized agent thereof, engaged in the act of negotiating, purchasing, assigning, exchanging, selling, leasing, or acquiring rights-of-way, permits, licenses, and any other interests in real property for, or on behalf, of a third party for the purpose of, or facilities related to: (A) Telecommunication lines; (B) Wireless communication facilities; (C) CATV; (D) Electric generation, transmission, and distribution lines; (E) Water diversion, collection, distribution, treatment, and storage or use; and (F) Transportation, so long as the person, firm, partnership, limited liability company, association, or corporation, including any employee or authorized agent thereof, does not represent any displaced person or entity as an agent thereof in the purchase, sale, or exchange of real estate, or an interest therein, resulting from residential or commercial relocations required under any transportation project, regardless of the source of public funding.

C.R.S. § 12-10-202 License required

12-10-202. License required. It is unlawful for any person, firm, partnership, limited liability company, association, or corporation to engage in the business or capacity of real estate broker in this state without first having obtained a license from the commission. No person shall be granted a license until the person establishes compliance with the provisions of this part 2 concerning education, experience, and testing; truthfulness and honesty and otherwise good moral character; and, in addition to any other requirements of this section, competency to transact the business of a real estate broker in such manner as to safeguard the interest of the public and only after satisfactory proof of the qualifications, together with the application for the license, is filed in the office of the commission. In determining the person's character, the commission shall be governed by section 24-5-101.

C.R.S. § 12-10-203 Application for license - rules - definition

12-10-203. Application for license - rules - definition. (1) (a) All persons desiring to become real estate brokers shall apply to the commission for a license under the provisions of this part 2. Application for a license as a real estate broker shall be made to the commission upon forms or in a manner prescribed by the commission. (b) (I) Prior to submitting an application for a license pursuant to subsection (1)(a) of this section, each applicant shall submit a set of fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. The applicant shall pay the fee established by the Colorado bureau of investigation for conducting the fingerprint-based criminal history record check to the bureau. Upon completion of the fingerprint-based criminal history record check, the bureau shall forward the results to the commission. The commission shall acquire a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. (II) For purposes of this subsection (1)(b), "applicant" means an individual, or any person designated to act as broker for any partnership, limited liability company, or corporation pursuant to subsection (6) of this section. (2) Every real estate broker licensed under this part 2 shall maintain a place of business within this state, except as provided in section 12-10-208. In case a real estate broker maintains more than one place of business within the state, the broker shall be responsible for supervising all licensed activities originating in the offices. (3) The commission is authorized by this section to require and procure any such proof as is necessary in reference to the truthfulness, honesty, and good moral character of any applicant for a real estate broker's license or, if the applicant is a partnership, limited liability company, or corporation, of any partner, manager, director, officer, member, or stockholder if the person has, either directly or indirectly, a substantial interest in the applicant prior to the issuance of the license. (4) (a) An applicant for a broker's license shall be at least eighteen years of age. The applicant must furnish proof satisfactory to the commission that the applicant has either received a degree from an accredited degree-granting college or university with a major course of study in real estate or has successfully completed courses of study, approved by the commission, at any accredited college or university or any private occupational school that has a certificate of approval from the private occupational school division in accordance with the provisions of article 64 of title 23 or that has been approved by the commission or licensed by an official state agency of any other state as follows: (I) Forty-eight hours of classroom instruction or equivalent correspondent hours in real estate law and real estate practice; and (II) Forty-eight hours of classroom instruction or equivalent correspondent hours in understanding and preparation of Colorado real estate contracts; and (III) A total of seventy-two hours of instruction or equivalent correspondence hours from the following areas of study: (A) Trust accounts and record keeping; (B) Real estate closings; (C) Current legal issues; and (D) Practical applications. (b) An applicant for a broker's license who has been licensed as a real estate broker in another jurisdiction shall be required to complete only the course of study comprising the subject matter areas described in subsections (4)(a)(II) and (4)(a)(III)(B) of this section. (A) Trust accounts and record keeping; (B) Real estate closings; (C) Current legal issues; and (D) Practical applications. (b) An applicant for a broker's license who has been licensed as a real estate broker in another jurisdiction shall be required to complete only the course of study comprising the subject matter areas described in subsections (4)(a)(II) and (4)(a)(III)(B) of this section. (c) An applicant for a broker's license who has been licensed as a real estate salesperson in another jurisdiction shall be required to complete only the course of study required in subsections (4)(a)(II) and (4)(a)(III) of this section. (5) (a) The applicant for a broker's license shall submit to and pass an examination designated to determine the competency of the applicant and prepared by or under the supervision of the commission or its designated contractor. The commission may contract with an independent testing service to develop, administer, or grade examinations or to administer licensee records. The contract may allow the testing service to recover the costs of the examination and the costs of administering exam and license records from the applicant. The commission may contract separately for these functions and allow recovered costs to be collected and retained by a single contractor for distribution to other contractors. The commission shall have the authority to set the minimum passing score that an applicant must receive on the examination, and the score shall reflect the minimum level of competency required to be a broker. The examination shall be given at such times and places as the commission prescribes. The examination shall include, but not be limited to, ethics, reading, spelling, basic mathematics, principles of land economics, appraisal, financing, a knowledge of the statutes and law of this state relating to deeds, trust deeds, mortgages, listing contracts, contracts of sale, bills of sale, leases, agency, brokerage, trust accounts, closings, securities, the provisions of this part 2, and the rules of the commission. The examination for a broker's license shall also include the preparation of a real estate closing statement. (b) An applicant for a broker's license who has held a real estate license in another jurisdiction that administers a real estate broker's examination and who has been licensed for two or more years prior to applying for a Colorado license may be issued a broker's license if the applicant establishes that he or she possesses credentials and qualifications that are substantively equivalent to the requirements in Colorado for licensure by examination. (c) In addition to all other applicable requirements, the following provisions apply to brokers that did not hold a current and valid broker's license on December 31, 1996: (I) No such broker shall engage in an independent brokerage practice without first having served actively as a real estate broker for at least two years. The commission shall adopt rules requiring an employing broker to ensure that a high level of supervision is exercised over such a broker during the two-year period. (II) No such broker shall employ another broker without first having completed twenty-four clock hours of instruction, or the equivalent in correspondence hours, as approved by the commission, in brokerage administration. (III) Effective January 1, 2019, a broker shall not act as an employing broker without first demonstrating, in accordance with rules of the commission, experience and knowledge sufficient to enable the broker to employ and adequately supervise other brokers, as appropriate to the broker's area of supervision. The commission's rules must set forth the method or methods by which the broker may demonstrate the experience and knowledge, either by documenting a specified number of transactions that the broker has completed or by other methods. ission, experience and knowledge sufficient to enable the broker to employ and adequately supervise other brokers, as appropriate to the broker's area of supervision. The commission's rules must set forth the method or methods by which the broker may demonstrate the experience and knowledge, either by documenting a specified number of transactions that the broker has completed or by other methods. (6) (a) Real estate brokers' licenses may be granted to individuals, partnerships, limited liability companies, or corporations. A partnership, limited liability company, or corporation, in its application for a license, shall designate a qualified, active broker to be responsible for management and supervision of the licensed actions of the partnership, limited liability company, or corporation and all licensees shown in the commission's records as being in the employ of the entity. The application of the partnership, limited liability company, or corporation and the application of the broker designated by it shall be filed with the commission. (b) No license shall be issued to any partnership, limited liability company, or corporation unless and until the broker so designated by the partnership, limited liability company, or corporation submits to and passes the examination required by this part 2 on behalf of the partnership, limited liability company, or corporation. Upon the broker successfully passing the examination and upon compliance with all other requirements of law by the partnership, limited liability company, or corporation, as well as by the designated broker, the commission shall issue a broker's license to the partnership, limited liability company, or corporation, which shall bear the name of the designated broker, and thereupon the broker so designated shall conduct business as a real estate broker only through the partnership, limited liability company, or corporation and not for the broker's own account. (c) If the person so designated is refused a license by the commission or ceases to be the designated broker of the partnership, limited liability company, or corporation, the entity may designate another person to make application for a license. If the person ceases to be the designated broker of the partnership, limited liability company, or corporation, the director may issue a temporary license to prevent hardship for a period not to exceed ninety days to the licensed person so designated. The director may extend a temporary license for one additional period not to exceed ninety days upon proper application and a showing of good cause; if the director refuses, no further extension of a temporary license shall be granted except by the commission. If any broker or employee of any such partnership, limited liability company, or corporation, other than the one designated as provided in this section, desires to act as a real estate broker, the broker or employee shall first obtain a license as a real estate broker as provided in this section and shall pay the regular fee therefor. a temporary license shall be granted except by the commission. If any broker or employee of any such partnership, limited liability company, or corporation, other than the one designated as provided in this section, desires to act as a real estate broker, the broker or employee shall first obtain a license as a real estate broker as provided in this section and shall pay the regular fee therefor. (7) The broker designated to act as broker for any partnership, limited liability company, or corporation is personally responsible for the handling of any and all earnest money deposits or escrow or trust funds received or disbursed by the partnership, limited liability company, or corporation. In the event of any breach of duty by the partnership, limited liability company, or corporation as a fiduciary, any person aggrieved or damaged by the breach of fiduciary duty shall have a claim for relief against the partnership, limited liability company, or corporation, as well as against the designated broker, and may pursue the claim against the partnership, limited liability company, or corporation and the designated broker personally. The broker may be held responsible and liable for damages based upon the breach of fiduciary duty as may be recoverable against the partnership, limited liability company, or corporation, and any judgment so obtained may be enforced jointly or severally against the broker personally and the partnership, limited liability company, or corporation. (8) No license for a broker registered as being in the employ of another broker shall be issued to a partnership, a limited liability company, or a corporation or under a fictitious name or trade name; except that a married woman may elect to use her birth name. (9) No person shall be licensed as a real estate broker under more than one name, and no person shall conduct or promote a real estate brokerage business except under the name under which the person is licensed. (10) A licensed attorney shall take and pass the examination referred to in this section after having completed twelve hours of classroom instruction or equivalent correspondent hours in trust accounts, record keeping, and real estate closings.

C.R.S. § 12-10-204 Errors and omissions insurance required - rules

12-10-204. Errors and omissions insurance required - rules. (1) Every licensee under this part 2, except an inactive broker or an attorney licensee who maintains a policy of professional malpractice insurance that provides coverage for errors and omissions for their activities as a licensee under this part 2, shall maintain errors and omissions insurance to cover all activities contemplated under parts 2 to 6 of this article 10. The division shall make the errors and omissions insurance available to all licensees by contracting with an insurer for a group policy after a competitive bid process in accordance with article 103 of title 24. A group policy obtained by the division must be available to all licensees with no right on the part of the insurer to cancel a licensee. A licensee may obtain errors and omissions insurance independently if the coverage complies with the minimum requirements established by the division. (2) (a) If the division is unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the group program at a reasonable annual premium, as determined by the division, a licensee shall independently obtain the errors and omissions insurance required by this section. (b) The division shall solicit and consider information and comments from interested persons when determining the reasonableness of annual premiums. (3) The division shall determine the terms and conditions of coverage required under this section based on rules promulgated by the commission. The commission shall notify each licensee of the required terms and conditions at least thirty days before the annual premium renewal date as determined by the commission. Each licensee shall file a certificate of coverage showing compliance with the required terms and conditions with the commission by the annual premium renewal date, as determined by the division. (4) In addition to all other powers and duties conferred upon the commission by this article 10, the commission shall adopt such rules as it deems necessary or proper to carry out the provisions of this section.

C.R.S. § 12-10-205 Licenses - issuance - contents - display

12-10-205. Licenses - issuance - contents - display. The commission shall make available for each licensee a license in such form and size as the commission shall prescribe and adopt. The real estate license shall show the name of the licensee and shall have imprinted thereon the seal, or a facsimile, of the department and, in addition to the foregoing, shall contain such other matter as the commission shall prescribe.

C.R.S. § 12-10-206 Real estate commission - created - compensation - immunity

12-10-206. Real estate commission - created - compensation - immunity. (1) There is created a commission of five members, appointed by the governor, which shall administer parts 2 and 5 of this article 10. This commission is known as the real estate commission. The commission is a type 1 entity, as defined in section 24-1-105, and consists of three real estate brokers who have had not less than five years' experience in the real estate business in Colorado, one of whom has substantial experience in property management, and two representatives of the public at large. Members of the commission serve three-year terms. Upon the death, resignation, removal, or otherwise of any member of the commission, the governor shall appoint a member to fill out the unexpired term. The governor may remove any member for misconduct, neglect of duty, or incompetence. (2) Each member of the commission shall receive the same compensation and reimbursement of expenses as those provided for members of boards and commissions in the division of professions and occupations pursuant to section 12-20-103 (6). Payment for all such per diem compensation and expenses shall be made out of annual appropriations from the division of real estate cash fund provided for in section 12-10-215. (3) Members of the commission, consultants, expert witnesses, and complainants shall be immune from suit in any civil action based upon any disciplinary proceedings or other official acts they performed in good faith. (4) No real estate broker's license shall be denied, suspended, or revoked except as determined by a majority vote of the members of the commission.

C.R.S. § 12-10-207 Division of real estate - creation - director, clerks, and assistants

12-10-207. Division of real estate - creation - director, clerks, and assistants. (1) There is created in the department the division of real estate. The executive director is authorized by this section to employ, subject to the provisions of the state personnel system laws of the state, a director of the division, who in turn shall employ such attorneys, deputies, investigators, clerks, and assistants as are necessary to discharge the duties imposed by parts 2 and 5 of this article 10. The division and the director are type 2 entities, as defined in section 24-1-105, and exercise their powers and perform their duties and functions under the department. (2) It is the duty of the director, personally, or the director's designee to aid in the administration and enforcement of parts 2 and 5 of this article 10 and in the prosecution of all persons charged with violating any of their provisions, to conduct audits of business accounts of licensees, to perform such duties of the commission as the commission prescribes, and to act in behalf of the commission on such occasions and in such circumstances as the commission directs.

C.R.S. § 12-10-208 Resident licensee - nonresident licensee - consent to service

12-10-208. Resident licensee - nonresident licensee - consent to service. (1) A nonresident of the state may become a real estate broker in this state by conforming to all the conditions of this part 2; except that the nonresident broker shall not be required to maintain a place of business within this state if that broker maintains a definite place of business in another state. (2) If a broker has no registered agent registered in this state, the registered agent is not located under its registered agent name at its registered agent address, or the registered agent cannot with reasonable diligence be served, the broker may be served by registered mail or by certified mail, return receipt requested, addressed to the entity at its principal address. Service is perfected under this subsection (2) at the earliest of: (a) The date the broker receives the process, notice, or demand; (b) The date shown on the return receipt, if signed by or on behalf of the broker; or (c) Five days after mailing. (3) All such applications shall contain a certification that the broker is authorized to act for the corporation.

C.R.S. § 12-10-209 Record of licensees - publications

12-10-209. Record of licensees - publications. The commission shall maintain a record of the names and addresses of all licensees licensed under the provisions of parts 2 and 5 of this article 10, together with such other information relative to the enforcement of the provisions as deemed by the commission to be necessary. Publication of the record and of any other information circulated in quantity outside the executive branch shall be in accordance with the provisions of section 24-1-136.

C.R.S. § 12-10-210 Compilation and publication of passing rates per educational institution for real estate licensure examinations - definition - rules

12-10-210. Compilation and publication of passing rates per educational institution for real estate licensure examinations - definition - rules. (1) The commission shall have the authority to obtain information from each educational institution authorized to offer courses in real estate for the purpose of compiling the number of applicants who pass the real estate licensure examination from each educational institution. The information shall include the name of each student who attended the institution and a statement of whether the student completed the necessary real estate courses required for licensure. The commission shall have access to such other information as necessary to accomplish the purpose of this section. For the purposes of this section, an "applicant" is a student who completed the required education requirements and who applied for and sat for the licensure examination. (2) The commission shall compile the information obtained in subsection (1) of this section with applicant information retained by the commission. Specifically, the commission shall compile whether the student applied for the licensure examination and whether the applicant passed the licensure examination. The commission shall create statistical data setting forth: (a) The name of the educational institution; (b) The number of students who completed the necessary real estate course required for licensure; (c) Whether the student registered and sat for the licensure examination; and (d) The number of those applicants who passed the licensure examination. (3) The commission shall publish this statistical data and make it available to the public quarterly. (4) The commission shall retain the statistical data for three years. (5) Specific examination scores for an applicant will be kept confidential by the commission unless the applicant authorizes release of the information. (6) The commission may promulgate rules for the administration of this section.

C.R.S. § 12-10-211 Change of license status - inactive - cancellation

12-10-211. Change of license status - inactive - cancellation. (1) Immediate notice shall be given in a manner acceptable to the commission by each licensee of any change of business location or employment. A change of business address or employment without notification to the commission shall automatically inactivate the licensee's license. (2) A broker who transfers to the address of another broker or a broker applicant who desires to be employed by another broker shall inform the commission if the broker is to be in the employ of the other broker. The employing broker shall have the control and custody of the employed broker's license. The employed broker may not act on behalf of the broker or as broker for a partnership, limited liability company, or corporation during the term of the employment; but this shall not affect the employed broker's right to transfer to another employing broker or to a location where the employed broker may conduct business as an independent broker or as a broker acting for a partnership, limited liability company, or corporation. (3) In the event that any licensee is discharged by or terminates employment with a broker, it shall be the joint duty of both such parties to immediately notify the commission. Either party may furnish the notice in a manner acceptable to the commission. The party giving notice shall notify the other party in person or in writing of the termination of employment. (4) It is unlawful for any such licensee to perform any of the acts authorized under the license in pursuance of this part 2, either directly or indirectly, on or after the date that employment has been terminated. When any real estate broker whose employment has been terminated is employed by another real estate broker, the commission shall, upon proper notification, enter the change of employment in the records of the commission. Not more than one employer or place of employment shall be shown for any real estate broker for the same period of time.

C.R.S. § 12-10-212 License fees - partnership, limited liability company, and corporation licenses - rules

12-10-212. License fees - partnership, limited liability company, and corporation licenses - rules. (1) Fees established pursuant to section 12-10-215 shall be charged by and paid to the commission or the agent for the commission for the following: (a) Each broker's examination; (b) Each broker's original application and license; (c) Each renewal of a broker's license; (d) Any change of name, address, or employing broker requiring a change in commission records; (e) A new application that shall be submitted when a licensed real estate broker wishes to become the broker acting for a partnership, a limited liability company, or a corporation. (2) The proper fee shall accompany each application for licensure. The fee shall not be refundable. Failure by the person taking an examination to file the appropriate broker's application within one year of the date the person passed the examination will automatically cancel the examination, and all rights to a passing score will be terminated. (3) Each real estate broker's license granted to an individual shall entitle the individual to perform all the acts contemplated by this part 2, without any further application on his or her part and without the payment of any fee other than the fees specified in this section. (4) (a) (I) The commission shall require that any person licensed under this part 2, whether on an active or inactive basis, renew the license on or before December 31 of every third year after issuance; except that an initial license issued under this part 2 on or after April 23, 2018, expires at 12 midnight on December 31 of the year in which it was issued. (II) Renewal is conditioned upon fulfillment of the continuing education requirements set forth in section 12-10-213. For persons renewing or reinstating an active license, written certification verifying completion for the previous licensing period of the continuing education requirements set forth in section 12-10-213 must accompany and be submitted to the commission with the application for renewal or reinstatement. For persons who did not submit certification verifying compliance with section 12-10-213 at the time a license was renewed or reinstated on an inactive status, written certification verifying completion for the previous licensing period of the continuing education requirements set forth in that section must accompany and be submitted with any future application to reactivate the license. The commission may, by rule, establish procedures to facilitate such a renewal. In the absence of any reason or condition that might warrant the refusal of the granting of a license or the revocation thereof, the commission shall issue a new license upon receipt by the commission of the written request of the applicant and the appropriate fees required by this section. Applications for renewal will be accepted thirty days prior to January 1. (III) A person who fails to renew a license before January 1 of the year succeeding the year of the expiration of the license may reinstate the license as follows: (A) If proper application is made within thirty-one days after the date of expiration, by payment of the regular renewal fee; (B) If proper application is made more than thirty-one days but within one year after the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to one-half the regular renewal fee; (C) If proper application is made more than one year but within three years after the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to the regular renewal fee. (IV) The commission may, by rule, establish procedures to facilitate the transition of the reinstatement license periods described in subsections (4)(a)(III)(A) to (4)(a)(III)(C) of this section from an anniversary expiration date to a December 31 expiration date. ter the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to the regular renewal fee. (IV) The commission may, by rule, establish procedures to facilitate the transition of the reinstatement license periods described in subsections (4)(a)(III)(A) to (4)(a)(III)(C) of this section from an anniversary expiration date to a December 31 expiration date. (b) Any reinstated license shall be effective only as of the date of reinstatement. Any person who fails to apply for reinstatement within three years after the expiration of a license shall, without exception, be treated as a new applicant for licensure. (c) All reinstatement fees shall be transmitted to the state treasurer, who shall credit the fees to the division of real estate cash fund, as established by section 12-10-215. (5) The suspension, expiration, or revocation of a real estate broker's license shall automatically inactivate every real estate broker's license where the holder of the license is shown in the commission records to be in the employ of the broker whose license has expired or has been suspended or revoked pending notification to the commission by the employed licensee of a change of employment.

C.R.S. § 12-10-213 Renewal of license - continuing education requirement - rules

12-10-213. Renewal of license - continuing education requirement - rules. (1) A broker applying for renewal of a license pursuant to section 12-10-212 (4) shall include with the application a certified statement verifying successful completion of real estate courses in accordance with the following schedule: (a) For licensees applying for renewal of a three-year license, passage within the previous three years of the Colorado portion of the real estate exam or completion of a minimum of twenty-four hours of credit, twelve of which must be the credits developed by the commission pursuant to subsection (2) of this section; (b) For licensees applying for renewal of a license that expires less than three years after it was issued, passage within the license period of the Colorado portion of the real estate exam or completion of a minimum of twenty-four hours of credit, at least eight of which must be the credits developed by the commission pursuant to subsection (2) of this section. (2) The commission shall develop twelve hours of credit designed to assure reasonable currency of real estate knowledge by licensees, which credits shall include an update of the current statutes and the rules promulgated by the commission that affect the practice of real estate. If a licensee takes a course pursuant to rule 250 of the Colorado rules of civil procedure and the course concerns real property law, the licensee shall receive credit for the course toward the fulfillment of the licensee's continuing education requirements pursuant to this section. The credits shall be taken from an accredited Colorado college or university; a Colorado community college; a Colorado private occupational school holding a certificate of approval from the state board for community colleges and occupational education; or an educational institution or an educational service described in section 23-64-104. Successful completion of the credits shall require satisfactory passage of a written examination or written examinations of the materials covered. The examinations shall be audited by the commission to verify their accuracy and the validity of the grades given. The commission shall set the standards required for satisfactory passage of the examinations. (3) All credits, other than the credits specified in subsection (2) of this section, shall be acquired from educational courses approved by the commission that contribute directly to the professional competence of a licensee. The credits may be acquired through successful completion of instruction in one or more of the following subjects: (a) Real estate law; (b) Property exchanges; (c) Real estate contracts; (d) Real estate finance; (e) Real estate appraisal; (f) Real estate closing; (g) Real estate ethics; (h) Condominiums and cooperatives; (i) Real estate time-sharing; (j) Real estate marketing principles; (k) Real estate construction; (l) Land development; (m) Real estate energy concerns; (n) Real estate geology; (o) Water and waste management; (p) Commercial real estate; (q) Real estate securities and syndications; (r) Property management; (s) Real estate computer principles; (t) Brokerage administration and management; (u) Agency; and (v) Any other subject matter as approved by the commission. (4) A licensee applying for renewal of a license that expires on December 31 of the year in which it was issued is not subject to the education requirements set forth in subsection (1) of this section. (5) The commission shall promulgate rules to implement this section.

C.R.S. § 12-10-214 Disposition of fees

12-10-214. Disposition of fees. All fees collected by the commission under parts 2 and 5 of this article 10, not including administrative fees that are in the nature of an administrative fine and fees retained by contractors pursuant to contracts entered into in accordance with section 12-10-203 or 24-34-101, shall be transmitted to the state treasurer, who shall credit the same to the division of real estate cash fund. Pursuant to section 12-10-215, the general assembly shall make annual appropriations from the fund for expenditures of the commission incurred in the performance of its duties under parts 2 and 5 of this article 10. The commission may request an appropriation specifically designated for educational and enforcement purposes. The expenditures incurred by the commission under parts 2 and 5 of this article 10 shall be made out of the appropriations upon vouchers and warrants drawn pursuant to law.

C.R.S. § 12-10-215 Fee adjustments - cash fund created

12-10-215. Fee adjustments - cash fund created. (1) This section applies to all activities of the division under parts 2, 5, 6, and 7 of this article 10. (2) (a) (I) The division shall propose, as part of its annual budget request, an adjustment in the amount of each fee that it is authorized by law to collect under parts 2, 5, 6, and 7 of this article 10. The budget request and the adjusted fees for the division must reflect direct and indirect costs. (II) The costs of the HOA information and resource center, created in section 12-10-801, shall be paid from the division of real estate cash fund created in this section. The division shall estimate the direct and indirect costs of operating the HOA information and resource center and shall establish the amount of the annual registration fee to be collected under section 38-33.3-401. The amount of the registration fee shall be sufficient to recover these costs, subject to a maximum limit of fifty dollars. (b) Based upon the appropriation made and subject to the approval of the executive director, the division shall adjust its fees so that the revenue generated from the fees approximates its direct and indirect costs incurred in administering the programs and activities from which the fees are derived. The fees shall remain in effect for the fiscal year for which the budget request applies. All fees collected by the division, not including fees retained by contractors pursuant to contracts entered into in accordance with section 12-10-203 or 24-34-101, shall be transmitted to the state treasurer, who shall credit the same to the division of real estate cash fund, which fund is hereby created. All money credited to the division of real estate cash fund shall be used as provided in this section or in section 12-10-214 and shall not be deposited in or transferred to the general fund of this state or any other fund. (c) Beginning July 1, 1979, and each July 1 thereafter, whenever money appropriated to the division for its activities for the prior fiscal year is unexpended, the money shall be made a part of the appropriation to the division for the next fiscal year, and the amount shall not be raised from fees collected by the division. If a supplemental appropriation is made to the division for its activities, its fees, when adjusted for the fiscal year next following that in which the supplemental appropriation was made, shall be adjusted by an additional amount that is sufficient to compensate for the supplemental appropriation. Funds appropriated to the division in the annual long appropriations bill shall be designated as a cash fund and shall not exceed the amount anticipated to be raised from fees collected by the division.

C.R.S. § 12-10-216 Records - evidence - inspection

12-10-216. Records - evidence - inspection. (1) The executive director shall adopt a seal by which all proceedings authorized under parts 2 and 5 of this article 10 shall be authenticated. Copies of records and papers in the office of the commission or department relating to the administration of parts 2 and 5 of this article 10, when duly certified and authenticated by the seal, shall be received as evidence in all courts equally and with like effect as the originals. All records kept in the office of the commission or department, under authority of parts 2 and 5 of this article 10, must be open to public inspection at such time and in such manner as may be prescribed by rules formulated by the commission. (2) The commission shall not be required to maintain or preserve licensing history records of any person licensed under the provisions of this part 2 for any period of time longer than seven years.

C.R.S. § 12-10-217 Investigation - revocation - actions against licensee or applicant - definition

12-10-217. Investigation - revocation - actions against licensee or applicant - definition. (1) The commission, upon its own motion, may, and, upon the complaint in writing of any person, shall, investigate the activities of any licensee or any person who assumes to act in the capacity of a licensee within the state, and the commission, after holding a hearing pursuant to section 12-10-219, has the power to impose an administrative fine not to exceed two thousand five hundred dollars for each separate offense and to censure a licensee, to place the licensee on probation and to set the terms of probation, or to temporarily suspend a license, or permanently revoke a license, when the licensee has performed, is performing, or is attempting to perform any of the following acts and is guilty of: (a) Knowingly making any misrepresentation or knowingly making use of any false or misleading advertising; (b) Making any promise of a character that influences, persuades, or induces another person when he or she could not or did not intend to keep the promise; (c) Knowingly misrepresenting or making false promises through agents, advertising, or otherwise; (d) Violating any provision of the "Colorado Consumer Protection Act", article 1 of title 6; (e) Acting for more than one party in a transaction without the knowledge of all parties thereto; (f) Representing or attempting to represent a real estate broker other than the licensee's employer without the express knowledge and consent of that employer; (g) In the case of a broker registered as in the employ of another broker, failing to place, as soon after receipt as is practicably possible, in the custody of that licensed broker-employer any deposit money or other money or fund entrusted to the employee by any person dealing with the employee as the representative of that licensed broker-employer; (h) Failing to account for or to remit, within a reasonable time, any money coming into the licensee's possession that belongs to others, whether acting as real estate brokers or otherwise, and failing to keep records relative to the money, which records shall contain such information as may be prescribed by the rules of the commission relative thereto and shall be subject to audit by the commission; (i) Converting funds of others, diverting funds of others without proper authorization, commingling funds of others with the broker's own funds, or failing to keep the funds of others in an escrow or a trustee account with some bank or recognized depository in this state, which account may be any type of checking, demand, passbook, or statement account insured by an agency of the United States government, and to keep records relative to the deposit that contain such information as may be prescribed by the rules of the commission relative thereto, which records shall be subject to audit by the commission; (j) Failing to provide the purchaser and seller of real estate with a closing statement of the transaction, containing such information as may be prescribed by the rules of the commission or failing to provide a signed duplicate copy of the listing contract and the contract of sale or the preliminary agreement to sell to the parties thereto; (k) Failing to maintain possession, for future use or inspection by an authorized representative of the commission, for a period of four years, of the documents or records prescribed by the rules of the commission or to produce the documents or records upon reasonable request by the commission or by an authorized representative of the commission; liminary agreement to sell to the parties thereto; (k) Failing to maintain possession, for future use or inspection by an authorized representative of the commission, for a period of four years, of the documents or records prescribed by the rules of the commission or to produce the documents or records upon reasonable request by the commission or by an authorized representative of the commission; (l) Paying a commission or valuable consideration for performing any of the functions of a real estate broker, as described in this part 2, to any person not licensed under this part 2; except that a licensed broker may pay a finder's fee or a share of any commission on a cooperative sale when the payment is made to a real estate broker licensed in another state or country. If a country does not license real estate brokers, then the payee must be a citizen or resident of the country and represent that the payee is in the business of selling real estate in the country. (m) Disregarding or violating any provision of this part 2 or part 4 of this article 10, violating any reasonable rule promulgated by the commission in the interests of the public and in conformance with the provisions of this part 2 or part 4 of this article 10; violating any lawful commission orders; or aiding and abetting a violation of any rule, commission order, or provision of this part 2 or part 4 of this article 10; (n) (I) Conviction of, entering a plea of guilty to, or entering a plea of nolo contendere to any crime in article 3 of title 18; parts 1, 2, 3, and 4 of article 4 of title 18; part 1, 2, 3, 4, 5, 7, 8, or 9 of article 5 of title 18; article 5.5 of title 18; parts 3, 4, 6, 7, and 8 of article 6 of title 18; parts 1, 3, 4, 5, 6, 7, and 8 of article 7 of title 18; part 3 of article 8 of title 18; article 15 of title 18; article 17 of title 18; section 18-18-404, 18-18-405, 18-18-406, 18-18-411, 18-18-412.5, 18-18-412.7, 18-18-412.8, 18-18-415, 18-18-416, 18-18-422, or 18-18-423; or any other like crime under Colorado law, federal law, or the laws of other states. A certified copy of the judgment of a court of competent jurisdiction of the conviction or other official record indicating that the plea was entered shall be conclusive evidence of the conviction or plea in any hearing under this part 2. (II) As used in this subsection (1)(n), "conviction" includes the imposition of a deferred judgment or deferred sentence. (o) Violating or aiding and abetting in the violation of the Colorado or federal fair housing laws; (p) Failing to immediately notify the commission in writing of a conviction, plea, or violation pursuant to subsection (1)(n) or (1)(o) of this section; (q) Having demonstrated unworthiness or incompetency to act as a real estate broker by conducting business in such a manner as to endanger the interest of the public; (r) In the case of a broker licensee, failing to exercise reasonable supervision over the activities of licensed employees; (s) Procuring, or attempting to procure, a real estate broker's license or renewing, reinstating, or reactivating, or attempting to renew, reinstate, or reactivate, a real estate broker's license by fraud, misrepresentation, or deceit or by making a material misstatement of fact in an application for the license; (t) Claiming, arranging for, or taking any secret or undisclosed amount of compensation, commission, or profit or failing to reveal to the licensee's principal or employer the full amount of the licensee's compensation, commission, or profit in connection with any acts for which a license is required under this part 2; r by making a material misstatement of fact in an application for the license; (t) Claiming, arranging for, or taking any secret or undisclosed amount of compensation, commission, or profit or failing to reveal to the licensee's principal or employer the full amount of the licensee's compensation, commission, or profit in connection with any acts for which a license is required under this part 2; (u) Using any provision allowing the licensee an option to purchase in any agreement authorizing or employing the licensee to sell, buy, or exchange real estate for compensation or commission, except when the licensee, prior to or coincident with election to exercise the option to purchase, reveals in writing to the licensee's principal or employer the full amount of the licensee's profit and obtains the written consent of the principal or employer approving the amount of the profit; (v) Effective on and after August 26, 2013, fraud, misrepresentation, deceit, or conversion of trust funds that results in the entry of a civil judgment for damages; (w) Any other conduct, whether of the same or a different character than specified in this subsection (1), that constitutes dishonest dealing; (x) Having had a real estate broker's or a subdivision developer's license suspended or revoked in any jurisdiction, or having had any disciplinary action taken against the broker or subdivision developer in any other jurisdiction if the broker's or subdivision developer's action would constitute a violation of this subsection (1). A certified copy of the order of disciplinary action shall be prima facie evidence of the disciplinary action. (y) Failing to keep records documenting proof of completion of the continuing education requirements in accordance with section 12-10-213 for a period of four years from the date of compliance with the section; (z) (I) Violating any provision of section 12-10-218. (II) In addition to any other remedies available to the commission pursuant to this article 10, after notice and a hearing pursuant to section 24-4-105, the commission may assess a penalty for a violation of section 12-10-218 or of any rule promulgated pursuant to section 12-10-218. The penalty shall be the amount of remuneration improperly paid and shall be transmitted to the state treasurer and credited to the general fund. (aa) Within the last five years, having a license, registration, or certification issued by Colorado or another state revoked or suspended for fraud, deceit, material misrepresentation, theft, or the breach of a fiduciary duty, and such discipline denied the person authorization to practice as: (I) A mortgage broker or mortgage loan originator; (II) A real estate broker or salesperson; (III) A real estate appraiser, as defined by section 12-10-602 (9); (IV) An insurance producer, as defined by section 10-2-103 (6); (V) An attorney; (VI) A securities broker-dealer, as defined by section 11-51-201 (2); (VII) A securities sales representative, as defined by section 11-51-201 (14); (VIII) An investment advisor, as defined by section 11-51-201 (9.5); or (IX) An investment advisor representative, as defined by section 11-51-201 (9.6). (2) Every person licensed pursuant to section 12-10-201 (6)(a)(X) shall give a prospective tenant a contract or receipt; and the contract or receipt shall include the address and telephone number of the commission in prominent letters and shall state that the regulation of rental location agents is under the purview of the commission. advisor representative, as defined by section 11-51-201 (9.6). (2) Every person licensed pursuant to section 12-10-201 (6)(a)(X) shall give a prospective tenant a contract or receipt; and the contract or receipt shall include the address and telephone number of the commission in prominent letters and shall state that the regulation of rental location agents is under the purview of the commission. (3) In the event a firm, partnership, limited liability company, association, or corporation operating under the license of a broker designated and licensed as representative of the firm, partnership, limited liability company, association, or corporation is guilty of any of the foregoing acts, the commission may suspend or revoke the right of the firm, partnership, limited liability company, association, or corporation to conduct its business under the license of the broker, whether or not the designated broker had personal knowledge thereof and whether or not the commission suspends or revokes the individual license of the broker. (4) Upon request of the commission, when any real estate broker is a party to any suit or proceeding, either civil or criminal, arising out of any transaction involving the sale or exchange of any interest in real property or out of any transaction involving a leasehold interest in the real property and when the broker is involved in the transaction in such capacity as a licensed broker, it shall be the duty of the broker to supply to the commission a copy of the complaint, indictment, information, or other initiating pleading and the answer filed, if any, and to advise the commission of the disposition of the case and of the nature and amount of any judgment, verdict, finding, or sentence that may be made, entered, or imposed therein. (5) This part 2 shall not be construed to relieve any person from civil liability or criminal prosecution under the laws of this state. (6) Complaints of record in the office of the commission and commission investigations, including commission investigative files, are closed to public inspection. Stipulations and final agency orders are public records subject to sections 24-72-203 and 24-72-204. (7) When a complaint or an investigation discloses an instance of misconduct that, in the opinion of the commission, does not warrant formal action by the commission but that should not be dismissed as being without merit, the commission may send a letter of admonition by certified mail, return receipt requested, to the licensee against whom a complaint was made and a copy thereof to the person making the complaint, but the letter shall advise the licensee that the licensee has the right to request in writing, within twenty days after proven receipt, that formal disciplinary proceedings be initiated to adjudicate the propriety of the conduct upon which the letter of admonition is based. If the request is timely made, the letter of admonition shall be deemed vacated, and the matter shall be processed by means of formal disciplinary proceedings. (8) All administrative fines collected pursuant to this section shall be transmitted to the state treasurer, who shall credit the same to the division of real estate cash fund. (9) Any application for licensure from a person whose license has been revoked shall not be considered until the passage of one year from the date of revocation. (10) When the division becomes aware of facts or circumstances that fall within the jurisdiction of a criminal justice or other law enforcement authority upon investigation of the activities of a licensee, the division shall, in addition to the exercise of its authority under this part 2, refer and transmit the information, which may include originals or copies of documents and materials, to one or more criminal justice or other law enforcement authorities for investigation and prosecution as authorized by law.

C.R.S. § 12-10-218 Affiliated business arrangements - definitions - disclosures - enforcement and penalties - reporting - rules - investigation information shared with the division of insurance

12-10-218. Affiliated business arrangements - definitions - disclosures - enforcement and penalties - reporting - rules - investigation information shared with the division of insurance. (1) As used in this section, unless the context otherwise requires: (a) "Affiliated business arrangement" means an arrangement in which: (I) A provider of settlement services or an associate of a provider of settlement services has either an affiliate relationship with or a direct beneficial ownership interest of more than one percent in another provider of settlement services; and (II) A provider of settlement services or the associate of a provider directly or indirectly refers settlement service business to another provider of settlement services or affirmatively influences the selection of another provider of settlement services. (b) "Associate" means a person who has one or more of the following relationships with a person in a position to refer settlement service business: (I) A spouse, parent, or child of the person; (II) A corporation or business entity that controls, is controlled by, or is under common control with the person; (III) An employer, officer, director, partner, franchiser, or franchisee of the person, including a broker acting as an independent contractor; or (IV) Anyone who has an agreement, arrangement, or understanding with the person, the purpose or substantial effect of which is to enable the person in a position to refer settlement service business to benefit financially from referrals of the business. (c) "Settlement service" means any service provided in connection with a real estate settlement including, but not limited to, the following: (I) Title searches; (II) Title examinations; (III) The provision of title certificates; (IV) Title insurance; (V) Services rendered by an attorney; (VI) The preparation of title documents; (VII) Property surveys; (VIII) The rendering of credit reports or appraisals; (IX) Real estate appraisal services; (X) Home inspection services; (XI) Services rendered by a real estate broker; (XII) Pest and fungus inspections; (XIII) The origination of a loan; (XIV) The taking of a loan application; (XV) The processing of a loan; (XVI) Underwriting and funding of a loan; (XVII) Escrow handling services; (XVIII) The handling of the processing; and (XIX) Closing of settlement. (2) (a) An affiliated business arrangement is permitted where the person referring business to the affiliated business arrangement receives payment only in the form of a return on an investment and where it does not violate the provisions of section 12-10-217. (b) If a licensee or the employing broker of a licensee is part of an affiliated business arrangement when an offer to purchase real property is fully executed, the licensee shall disclose to all parties to the real estate transaction the existence of the arrangement. The disclosure shall be written, shall be signed by all parties to the real estate transaction, and shall comply with the federal "Real Estate Settlement Procedures Act of 1974", as amended, 12 U.S.C. sec. 2601 et seq. (c) A licensee shall not require the use of an affiliated business arrangement or a particular provider of settlement services as a condition of obtaining services from that licensee for any settlement service. For the purposes of this subsection (2)(c), "require the use" shall have the same meaning as "required use" in 24 CFR 3500.2 (b). (d) No licensee shall give or accept any fee, kickback, or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving an affiliated business arrangement shall be referred to any provider of settlement services. n (2)(c), "require the use" shall have the same meaning as "required use" in 24 CFR 3500.2 (b). (d) No licensee shall give or accept any fee, kickback, or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving an affiliated business arrangement shall be referred to any provider of settlement services. (e) Nothing in this section shall be construed to prohibit payment of a fee to: (I) An attorney for services actually rendered; (II) A title insurance company to its duly appointed agent for services actually performed in the issuance of a policy of title insurance; (III) A lender to its duly appointed agent for services actually performed in the making of a loan. (f) Nothing in this section shall be construed to prohibit payment to any person of: (I) A bona fide salary or compensation or other payment for goods or facilities actually furnished or for services actually performed; (II) A fee pursuant to cooperative brokerage and referral arrangements or agreements between real estate brokers. (g) It shall not be a violation of this section for an affiliated business arrangement: (I) To require a buyer, borrower, or seller to pay for the services of any attorney, credit reporting agency, or real estate appraiser chosen by the lender to represent the lender's interest in a real estate transaction; or (II) If an attorney or law firm represents a client in a real estate transaction and issues or arranges for the issuance of a policy of title insurance in the transaction directly as agent or through a separate corporate title insurance agency that may be established by that attorney or law firm and operated as an adjunct to his or her law practice. (h) No person shall be liable for a violation of this section if the person proves by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error notwithstanding maintenance of procedures that are reasonably adopted to avoid the error. (3) On and after July 1, 2006, a licensee shall disclose at the time the licensee enters into or changes an affiliated business arrangement, in a form and manner acceptable to the commission, the names of all affiliated business arrangements to which the licensee is a party. The disclosure shall include the physical locations of the affiliated businesses. (4) On and after July 1, 2006, an employing broker, in a form and manner acceptable to the commission, shall at least annually disclose the names of all affiliated business arrangements to which the employing broker is a party. The disclosure shall include the physical locations of the affiliated businesses. (5) The commission may promulgate rules concerning the creation and conduct of an affiliated business arrangement, including, but not limited to, rules defining what constitutes a sham affiliated business arrangement. The commission shall adopt the rules, policies, or guidelines issued by the United States department of housing and urban development concerning the federal "Real Estate Settlement Procedures Act of 1974", as amended, 12 U.S.C. sec. 2601 et seq. Rules adopted by the commission shall be at least as stringent as the federal rules and shall ensure that consumers are adequately informed about affiliated business arrangements. The commission shall consult with the insurance commissioner pursuant to section 10-11-124 (2), concerning rules, policies, or guidelines the insurance commissioner adopts concerning affiliated business arrangements. Neither the rules promulgated by the insurance commissioner nor the commission may create a conflicting regulatory burden on an affiliated business arrangement. (6) The division of real estate may share information gathered during an investigation of an affiliated business arrangement with the division of insurance.

C.R.S. § 12-10-219 Hearing - administrative law judge - review - rules

12-10-219. Hearing - administrative law judge - review - rules. (1) Except as otherwise provided in this section, all proceedings before the commission with respect to disciplinary actions and denial of licensure under this part 2 and part 4 of this article 10 and certifications issued under part 5 of this article 10 shall be conducted by an administrative law judge pursuant to the provisions of sections 24-4-104 and 24-4-105. (2) The proceedings shall be held in the county where the commission has its office or in such other place as the commission may designate. If the licensee is an employed broker, the commission shall also notify the broker employing the licensee by mailing, by first-class mail, a copy of the written notice required under section 24-4-104 (3) to the employing broker's last-known business address. (3) An administrative law judge shall conduct all hearings for denying, suspending, or revoking a license or certificate on behalf of the commission, subject to appropriations made to the department of personnel. Each administrative law judge shall be appointed pursuant to part 10 of article 30 of title 24. The administrative law judge shall conduct the hearing pursuant to the provisions of sections 24-4-104 and 24-4-105. No license shall be denied, suspended, or revoked until the commission has made its decision by a majority vote. (4) The decision of the commission in any disciplinary action or denial of licensure under this section is subject to review by the court of appeals by appropriate proceedings under section 24-4-106 (11). In order to effectuate the purposes of parts 2, 4, and 5 of this article 10, the commission has the power to promulgate rules pursuant to article 4 of title 24. The commission may appear in court by its own attorney. (5) Pursuant to the proceeding, the court has the right, in its discretion, to stay the execution or effect of any final order of the commission; but a hearing shall be held affording the parties an opportunity to be heard for the purpose of determining whether the public health, safety, and welfare would be endangered by staying the commission's order. If the court determines that the order should be stayed, it shall also determine at the hearing the amount of the bond and adequacy of the surety, which bond shall be conditioned upon the faithful performance by the petitioner of all obligations as a real estate broker and upon the prompt payment of all damages arising from or caused by the delay in the taking effect of or enforcement of the order complained of and for all costs that may be assessed or required to be paid in connection with the proceedings. (6) In any hearing conducted by the commission in which there is a possibility of the denial, suspension, or revocation of a license because of the conviction of a felony or of a crime involving moral turpitude, the commission shall be governed by the provisions of section 24-5-101.

C.R.S. § 12-10-220 Rules

12-10-220. Rules. All rules adopted or amended by the commission are subject to sections 24-4-103 (8)(c) and (8)(d) and 24-34-104 (6)(b).

C.R.S. § 12-10-220.5 Radon disclosure - rules

12-10-220.5. Radon disclosure - rules. The commission shall promulgate rules to implement section 38-35.7-112 (2)(c).

C.R.S. § 12-10-221 Broker remuneration

12-10-221. Broker remuneration. It is unlawful for a real estate broker registered in the commission office as in the employ of another broker to accept a commission or valuable consideration for the performance of any of the acts specified in this part 2 from any person except the broker's employer, who shall be a licensed real estate broker.

C.R.S. § 12-10-222 Acts of third parties - broker's liability

12-10-222. Acts of third parties - broker's liability. Any unlawful act or violation of any of the provisions of this part 2 upon the part of an employee, officer, or member of a licensed real estate broker shall not be cause for disciplinary action against a real estate broker, unless it appears to the satisfaction of the commission that the real estate broker had actual knowledge of the unlawful act or violation or had been negligent in the supervision of employees.

C.R.S. § 12-10-223 Violations

12-10-223. Violations. Any natural person, firm, partnership, limited liability company, association, or corporation violating the provisions of this part 2 by acting as real estate broker in this state without having obtained a license or by acting as real estate broker after the broker's license has been revoked or during any period for which the license may have been suspended commits a class 2 misdemeanor.

C.R.S. § 12-10-224 Subpoena compelling attendance of witnesses and production of records and documents

12-10-224. Subpoena compelling attendance of witnesses and production of records and documents. The commission, the director, or the administrative law judge appointed for hearings may issue a subpoena compelling the attendance and testimony of witnesses and the production of books, papers, or records pursuant to an investigation or hearing of the commission. The subpoenas shall be served in the same manner as subpoenas issued by district courts and shall be issued without discrimination between public or private parties requiring the attendance of witnesses and the production of documents at hearings. If a person fails or refuses to obey a subpoena issued by the commission, the director, or the appointed administrative law judge, the commission may petition the district court having jurisdiction for issuance of a subpoena in the premises, and the court shall, in a proper case, issue its subpoena. Any person who refuses to obey a subpoena shall be punished as provided in section 12-10-225.

C.R.S. § 12-10-225 Failure to obey subpoena - penalty

12-10-225. Failure to obey subpoena - penalty. Any person who willfully fails or neglects to appear and testify or to produce books, papers, or records required by subpoena, duly served upon him or her in any matter conducted under parts 2 and 5 of this article 10, commits a petty offense. Each day a person so refuses or neglects constitutes a separate offense.

C.R.S. § 12-10-226 Powers of commission - injunctions

12-10-226. Powers of commission - injunctions. The commission may apply to a court of competent jurisdiction for an order enjoining any act or practice that constitutes a violation of parts 2 and 5 of this article 10, and, upon a showing that a person is engaging or intends to engage in any such act or practice, an injunction, restraining order, or other appropriate order shall be granted by the court regardless of the existence of another remedy therefor. Any notice, hearing, or duration of any injunction or restraining order shall be made in accordance with the provisions of the Colorado rules of civil procedure.

C.R.S. § 12-10-226.3 HOA homeowners' rights task force - creation - membership - duties - reporting - definitions - repeal

12-10-226.3. HOA homeowners' rights task force - creation - membership - duties - reporting - definitions - repeal. (Repealed)

C.R.S. § 12-10-226.5 Metropolitan district homeowners' rights task force - creation - membership - duties - reporting - definition - repeal

12-10-226.5. Metropolitan district homeowners' rights task force - creation - membership - duties - reporting - definition - repeal. (Repealed)

C.R.S. § 12-10-227 Repeal of part - subject to review

12-10-227. Repeal of part - subject to review. This part 2 is repealed, effective September 1, 2026. Before the repeal, the division, including the commission, is scheduled for review in accordance with section 24-34-104.

C.R.S. § 12-10-301 When entitled to commission

12-10-301. When entitled to commission. No real estate agent or broker is entitled to a commission for finding a purchaser who is ready, willing, and able to complete the purchase of real estate as proposed by the owner until the same is consummated or is defeated by the refusal or neglect of the owner to consummate the same as agreed upon.

C.R.S. § 12-10-302 Objections on account of title

12-10-302. Objections on account of title. No real estate agent or broker is entitled to a commission when a proposed purchaser fails or refuses to complete his or her contract of purchase because of defects in the title of the owner, unless the owner, within a reasonable time, has the defects corrected by legal proceedings or otherwise.

C.R.S. § 12-10-303 When owner must perfect title

12-10-303. When owner must perfect title. The owner shall not be required to begin legal or other proceedings for the correction of a title until the agent or broker secures from the proposed purchaser an enforceable contract in writing, binding him or her to complete the purchase whenever the defects in the title are corrected.

C.R.S. § 12-10-304 Referral fees - conformity with federal law required - remedies for violation - definitions

12-10-304. Referral fees - conformity with federal law required - remedies for violation - definitions. (1) A person licensed under part 2, 3, or 5 of this article 10 shall not pay or receive a referral fee except in accordance with the federal "Real Estate Settlement Procedures Act of 1974", as amended, 12 U.S.C. sec. 2601 et seq., and unless reasonable cause for payment of the referral fee exists. A reasonable cause for payment means: (a) An actual introduction of business has been made; (b) A contractual referral fee relationship exists; or (c) A contractual cooperative brokerage relationship exists. (2) (a) No person shall interfere with the brokerage relationship of a licensee. (b) As used in this subsection (2): (I) "Brokerage relationship" means a relationship entered into between a broker and a buyer, seller, landlord, or tenant under which the broker engages in any of the acts set forth in section 12-10-201 (6). A brokerage relationship is not established until a written brokerage agreement is entered into between the parties or is otherwise established by law. (II) "Interfere with the brokerage relationship" means demanding a referral fee from a licensee without reasonable cause. (III) "Referral fee" means any fee paid by a licensee to any person or entity, other than a cooperative commission offered by a listing broker to a selling broker or vice versa. (3) Any person aggrieved by a violation of any provision of this section may bring a civil action in a court of competent jurisdiction. The prevailing party in any such action shall be entitled to actual damages and, in addition, the court may award an amount up to three times the amount of actual damages sustained as a result of any such violation plus reasonable attorney fees.

C.R.S. § 12-10-305 Repeal of part - subject to review

12-10-305. Repeal of part - subject to review. This part 3 is repealed, effective September 1, 2026. Before the repeal, this part 3 is scheduled for review in accordance with section 24-34-104.

C.R.S. § 12-10-401 Legislative declaration

12-10-401. Legislative declaration. (1) The general assembly finds, determines, and declares that the public will best be served through a better understanding of the public's legal and working relationships with real estate brokers and by being able to engage any such real estate broker on terms and under conditions that the public and the real estate broker find acceptable. This includes engaging a broker as a single agent or transaction-broker. Individual members of the public should not be exposed to liability for acts or omissions of real estate brokers that have not been approved, directed, or ratified by the individuals. Further, the public should be advised of the general duties, obligations, and responsibilities of the real estate broker they engage. (2) This part 4 is enacted to govern the relationships between real estate brokers and sellers, landlords, buyers, and tenants in real estate transactions.

C.R.S. § 12-10-402 Definitions

12-10-402. Definitions. As used in this part 4, unless the context otherwise requires: (1) "Broker" shall have the same meaning as set forth in section 12-10-201 (6), except as otherwise specified in this part 4. (2) "Customer" means a party to a real estate transaction with whom the broker has no brokerage relationship because the party has not engaged or employed a broker. (3) (a) "Designated broker" means an employing broker or employed broker who is designated in writing by an employing broker to serve as a single agent or transaction-broker for a seller, landlord, buyer, or tenant in a real estate transaction. (b) "Designated broker" does not include a real estate brokerage firm that consists of only one licensed natural person. (4) "Dual agent" means a broker who, with the written informed consent of all parties to a contemplated real estate transaction, is engaged as a limited agent for both the seller and buyer or both the landlord and tenant. (5) "Limited agent" means an agent whose duties and obligations to a principal are only those set forth in section 12-10-404 or 12-10-405, with any additional duties and obligations agreed to pursuant to section 12-10-403 (5). (6) "Single agent" means a broker who is engaged by and represents only one party in a real estate transaction. A single agent includes the following: (a) "Buyer's agent", which means a broker who is engaged by and represents the buyer in a real estate transaction; (b) "Landlord's agent", which means a broker who is engaged by and represents the landlord in a leasing transaction; (c) "Seller's agent", which means a broker who is engaged by and represents the seller in a real estate transaction; and (d) "Tenant's agent", which means a broker who is engaged by and represents the tenant in a leasing transaction. (7) "Subagent" means a broker engaged to act for another broker in performing brokerage tasks for a principal. The subagent owes the same obligations and responsibilities to the principal as does the principal's broker. (8) "Transaction-broker" means a broker who assists one or more parties throughout a contemplated real estate transaction with communication, interposition, advisement, negotiation, contract terms, and the closing of the real estate transaction without being an agent or advocate for the interests of any party to the transaction. Upon agreement in writing pursuant to section 12-10-403 (2) or a written disclosure pursuant to section 12-10-408 (2)(c), a transaction-broker may become a single agent.

C.R.S. § 12-10-403 Relationships between brokers and the public - definition - rules

12-10-403. Relationships between brokers and the public - definition - rules. (1) When engaged in any of the activities enumerated in section 12-10-201 (6), a broker may act in any transaction as a single agent or transaction-broker. The broker's general duties and obligations arising from that relationship shall be disclosed to the seller and the buyer or to the landlord and the tenant pursuant to section 12-10-408. (2) A broker shall be considered a transaction-broker unless a single agency relationship is established through a written agreement between the broker and the party or parties to be represented by the broker. (3) A broker may work with a single party in separate transactions pursuant to different relationships including, but not limited to, selling one property as a seller's agent and working with that seller in buying another property as a transaction-broker or buyer's agent, but only if the broker complies with this part 4 in establishing the relationships for each transaction. (4) (a) A broker licensed pursuant to part 2 of this article 10, whether acting as a single agent or transaction-broker, may complete standard forms for use in a real estate transaction, including standard forms intended to convey personal property as part of the real estate transaction, when a broker is performing the activities enumerated or referred to in section 12-10-201 (6) in the transaction. (b) As used in this subsection (4), "standard form" means: (I) A form promulgated by the real estate commission for current use by brokers, also referred to in this section as a "commission-approved form"; (II) A form drafted by a licensed Colorado attorney representing the broker, employing broker, or brokerage firm, so long as the name of the attorney or law firm and the name of the broker, employing broker, or brokerage firm for whom the form is prepared are included on the form itself; (III) A form provided by a party to the transaction if the broker is acting in the transaction as either a transaction-broker or as a single agent for the party providing the form to the broker, so long as the broker retains written confirmation that the form was provided by a party to the transaction; (IV) A form prescribed by a governmental agency, a quasi-governmental agency, or a lender regulated by state or federal law, if use of the form is mandated by the agency or lender; (V) A form issued with the written approval of the Colorado Bar Association or its successor organization and specifically designated for use by brokers in Colorado, so long as the form is used within any guidelines or conditions specified by the Colorado Bar Association or successor organization in connection with the use of the form; (VI) A form used for disclosure purposes only, if the disclosure does not purport to waive or create any legal rights or obligations affecting any party to the transaction and if the form provides only information concerning either: (A) The real estate involved in the transaction specifically; or (B) The geographic area in which the real estate is located generally; (VII) A form prescribed by a title company that is providing closing services in a transaction for which the broker is acting either as a transaction-broker or as a single agent for a party to the transaction; or (VIII) A letter of intent created or prepared by a broker, employing broker, or brokerage firm, so long as the letter of intent states on its face that it is nonbinding and creates no legal rights or obligations. a title company that is providing closing services in a transaction for which the broker is acting either as a transaction-broker or as a single agent for a party to the transaction; or (VIII) A letter of intent created or prepared by a broker, employing broker, or brokerage firm, so long as the letter of intent states on its face that it is nonbinding and creates no legal rights or obligations. (c) A broker shall use a commission-approved form when such a form exists and is appropriate for the transaction. A broker's use of any standard form described in subsection (4)(b)(III) or (4)(b)(IV) of this section must be limited to inserting transaction-specific information within the form. In using standard forms described in subsection (4)(b)(II), (4)(b)(V), (4)(b)(VI), (4)(b)(VII), or (4)(b)(VIII) of this section, the broker may also advise the parties as to effects thereof, and the broker's use of those standard forms must be appropriate for the transaction and the circumstances in which they are used. In any transaction described in this subsection (4), the broker shall advise the parties that the forms have important legal consequences and that the parties should consult legal counsel before signing the forms. (5) Nothing contained in this section shall prohibit the public from entering into written contracts with any broker that contain duties, obligations, or responsibilities that are in addition to those specified in this part 4. (6) (a) If a real estate brokerage firm has more than one licensed natural person, the employing broker or an individual broker employed or engaged by that employing broker shall be designated to work with the seller, landlord, buyer, or tenant as a designated broker. The employing broker may designate more than one of its individual brokers to work with a seller, landlord, buyer, or tenant. (b) The brokerage relationship established between the seller, landlord, buyer, or tenant and a designated broker, including the duties, obligations, and responsibilities of that relationship, shall not extend to the employing broker nor to any other broker employed or engaged by that employing broker who has not been so designated and shall not extend to the firm, partnership, limited liability company, association, corporation, or other entity that employs the broker. (c) A real estate broker may have designated brokers working as single agents for a seller or landlord and a buyer or tenant in the same real estate transaction without creating dual agency for the employing real estate broker, or any broker employed or engaged by that employing real estate broker. (d) An individual broker may be designated to work for both a seller or landlord and a buyer or tenant in the same transaction as a transaction-broker for both, as a single agent for the seller or landlord treating the buyer or tenant as a customer, or as a single agent for a buyer or tenant treating the seller or landlord as a customer, but not as a single agent for both. The applicable designated broker relationship shall be disclosed in writing to the seller or landlord and buyer or tenant in a timely manner pursuant to rules promulgated by the real estate commission. (e) A designated broker may work with a seller or landlord in one transaction and work with a buyer or tenant in another transaction. (f) When a designated broker serves as a single agent pursuant to section 12-10-404 or 12-10-405, there shall be no imputation of knowledge to the employing or employed broker who has not been so designated. uant to rules promulgated by the real estate commission. (e) A designated broker may work with a seller or landlord in one transaction and work with a buyer or tenant in another transaction. (f) When a designated broker serves as a single agent pursuant to section 12-10-404 or 12-10-405, there shall be no imputation of knowledge to the employing or employed broker who has not been so designated. (g) The extent and limitations of the brokerage relationship with the designated broker shall be disclosed to the seller, landlord, buyer, or tenant working with that designated broker pursuant to section 12-10-408. (7) No seller, buyer, landlord, or tenant shall be vicariously liable for a broker's acts or omissions that have not been approved, directed, or ratified by the seller, buyer, landlord, or tenant. (8) Nothing in this section shall be construed to limit the employing broker's or firm's responsibility to supervise licensees employed by the broker or firm nor to shield the broker or firm from vicarious liability.

C.R.S. § 12-10-403.5 Broker engagement contracts - residential premises - prohibited terms - definition

12-10-403.5. Broker engagement contracts - residential premises - prohibited terms - definition. (1) As used in this section, unless the context otherwise requires, "broker engagement contract" means a written contract in which a seller, buyer, landlord, or tenant of a residential premises becomes the client of a broker or agrees to retain the services of a broker in the future and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another person in exchange for the broker: (a) Producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the residential premises; or (b) Performing other services. (2) A broker engagement contract must not: (a) Purport to be a covenant running with the land or to be binding on future owners of interests in the real property; (b) Allow for assignment of the right to provide service without notice and agreement of the owner of the residential premises; or (c) Purport to create a recordable lien, encumbrance, or other real property security interest. Any such lien, encumbrance, or other real property security interest is void and unenforceable. (3) A person who offers to a consumer a broker engagement contract that includes a provision in violation of subsection (2) of this section commits an unfair or deceptive trade practice, as provided in section 6-1-105 (1)(uuu). (4) This section does not apply to: (a) A home warranty service contract, as defined in section 12-10-901 (2)(a); (b) A building warranty or similar product that covers the cost of maintenance of a major housing or building system, such as a plumbing or an electrical system, for a specific period of time after the date on which a house or building is sold; (c) An insurance contract; (d) An option to purchase, a put requirement to purchase, a right of first offer, or a right of refusal; (e) A declaration created in the formation of a common interest community, as defined in section 38-33.3-103 (8), or an amendment to the declaration; (f) A maintenance or repair agreement entered into by a unit owners' association, as defined in section 38-33.3-103 (3); (g) A loan or a commitment to make or receive a loan, which loan or commitment is secured by real estate; (h) A security agreement under the "Uniform Commercial Code" relating to the sale or rental of personal property or fixtures; (i) Water, sewer, electrical, telephone, cable, or other regulated utility service providers; or (j) A property management agreement by which the owner of real property contracts with a party to provide management services for the maintenance, ownership, operation, or lease of a residential premises.

C.R.S. § 12-10-404 Single agent engaged by seller or landlord

12-10-404. Single agent engaged by seller or landlord. (1) A broker engaged by a seller or landlord to act as a seller's agent or a landlord's agent is a limited agent with the following duties and obligations: (a) To perform the terms of the written agreement made with the seller or landlord; (b) To exercise reasonable skill and care for the seller or landlord; (c) To promote the interests of the seller or landlord with the utmost good faith, loyalty, and fidelity, including, but not limited to: (I) Seeking a price and terms that are acceptable to the seller or landlord; except that the broker shall not be obligated to seek additional offers to purchase the property while the property is subject to a contract for sale or to seek additional offers to lease the property while the property is subject to a lease or letter of intent to lease; (II) Presenting all offers to and from the seller or landlord in a timely manner regardless of whether the property is subject to a contract for sale or a lease or letter of intent to lease; (III) Disclosing to the seller or landlord adverse material facts actually known by the broker; (IV) Counseling the seller or landlord as to any material benefits or risks of a transaction that are actually known by the broker; (V) Advising the seller or landlord to obtain expert advice as to material matters about which the broker knows but the specifics of which are beyond the expertise of the broker; (VI) Accounting in a timely manner for all money and property received; and (VII) Informing the seller or landlord that the seller or landlord shall not be vicariously liable for the acts of the seller's or landlord's agent that are not approved, directed, or ratified by the seller or landlord; (d) To comply with all requirements of this article 10 and any rules promulgated pursuant to this article 10; and (e) To comply with any applicable federal, state, or local laws, rules, regulations, or ordinances including fair housing and civil rights statutes or regulations. (2) The following information shall not be disclosed by a broker acting as a seller's or landlord's agent without the informed consent of the seller or landlord: (a) That a seller or landlord is willing to accept less than the asking price or lease rate for the property; (b) What the motivating factors are for the party selling or leasing the property; (c) That the seller or landlord will agree to financing terms other than those offered; (d) Any material information about the seller or landlord unless disclosure is required by law or failure to disclose the information would constitute fraud or dishonest dealing; or (e) Any facts or suspicions regarding circumstances that may psychologically impact or stigmatize any real property pursuant to section 38-35.5-101. (3) (a) A broker acting as a seller's or landlord's agent owes no duty or obligation to the buyer or tenant; except that a broker shall, subject to the limitations of section 38-35.5-101, concerning psychologically impacted property, disclose to any prospective buyer or tenant all adverse material facts actually known by the broker. The adverse material facts may include but shall not be limited to adverse material facts pertaining to the title and the physical condition of the property, any material defects in the property, and any environmental hazards affecting the property that are required by law to be disclosed. roperty, disclose to any prospective buyer or tenant all adverse material facts actually known by the broker. The adverse material facts may include but shall not be limited to adverse material facts pertaining to the title and the physical condition of the property, any material defects in the property, and any environmental hazards affecting the property that are required by law to be disclosed. (b) A seller's or landlord's agent owes no duty to conduct an independent inspection of the property for the benefit of the buyer or tenant and owes no duty to independently verify the accuracy or completeness of any statement made by the seller or landlord or any independent inspector. (4) A seller's or landlord's agent may show alternative properties not owned by the seller or landlord to prospective buyers or tenants and may list competing properties for sale or lease and not be deemed to have breached any duty or obligation to the seller or landlord. (5) A designated broker acting as a seller's or landlord's agent may cooperate with other brokers but may not engage or create any subagents.

C.R.S. § 12-10-405 Single agent engaged by buyer or tenant

12-10-405. Single agent engaged by buyer or tenant. (1) A broker engaged by a buyer or tenant to act as a buyer's or tenant's agent shall be a limited agent with the following duties and obligations: (a) To perform the terms of the written agreement made with the buyer or tenant; (b) To exercise reasonable skill and care for the buyer or tenant; (c) To promote the interests of the buyer or tenant with the utmost good faith, loyalty, and fidelity, including, but not limited to: (I) Seeking a price and terms that are acceptable to the buyer or tenant; except that the broker shall not be obligated to seek other properties while the buyer is a party to a contract to purchase property or while the tenant is a party to a lease or letter of intent to lease; (II) Presenting all offers to and from the buyer or tenant in a timely manner regardless of whether the buyer is already a party to a contract to purchase property or the tenant is already a party to a contract or a letter of intent to lease; (III) Disclosing to the buyer or tenant adverse material facts actually known by the broker; (IV) Counseling the buyer or tenant as to any material benefits or risks of a transaction that are actually known by the broker; (V) Advising the buyer or tenant to obtain expert advice as to material matters about which the broker knows but the specifics of which are beyond the expertise of the broker; (VI) Accounting in a timely manner for all money and property received; and (VII) Informing the buyer or tenant that the buyer or tenant shall not be vicariously liable for the acts of the buyer's or tenant's agent that are not approved, directed, or ratified by the buyer or tenant; (d) To comply with all requirements of this article 10 and any rules promulgated pursuant to this article 10; and (e) To comply with any applicable federal, state, or local laws, rules, regulations, or ordinances including fair housing and civil rights statutes or regulations. (2) The following information shall not be disclosed by a broker acting as a buyer's or tenant's agent without the informed consent of the buyer or tenant: (a) That a buyer or tenant is willing to pay more than the purchase price or lease rate for the property; (b) What the motivating factors are for the party buying or leasing the property; (c) That the buyer or tenant will agree to financing terms other than those offered; (d) Any material information about the buyer or tenant unless disclosure is required by law or failure to disclose the information would constitute fraud or dishonest dealing; or (e) Any facts or suspicions regarding circumstances that would psychologically impact or stigmatize any real property pursuant to section 38-35.5-101. (3) (a) A broker acting as a buyer's or tenant's agent owes no duty or obligation to the seller or landlord; except that the broker shall disclose to any prospective seller or landlord all adverse material facts actually known by the broker including but not limited to adverse material facts concerning the buyer's or tenant's financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property to be purchased as a principal residence. n to the seller or landlord; except that the broker shall disclose to any prospective seller or landlord all adverse material facts actually known by the broker including but not limited to adverse material facts concerning the buyer's or tenant's financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property to be purchased as a principal residence. (b) A buyer's or tenant's agent owes no duty to conduct an independent investigation of the buyer's or tenant's financial condition for the benefit of the seller or landlord and owes no duty to independently verify the accuracy or completeness of statements made by the buyer or tenant or any independent inspector. (4) A buyer's or tenant's agent may show properties in which the buyer or tenant is interested to other prospective buyers or tenants without breaching any duty or obligation to the buyer or tenant. Nothing in this section shall be construed to prohibit a buyer's or tenant's agent from showing competing buyers or tenants the same property and from assisting competing buyers or tenants in attempting to purchase or lease a particular property. (5) A broker acting as a buyer's or tenant's agent owes no duty to conduct an independent inspection of the property for the benefit of the buyer or tenant and owes no duty to independently verify the accuracy or completeness of statements made by the seller, landlord, or independent inspectors; except that nothing in this subsection (5) shall be construed to limit the broker's duties and obligations imposed pursuant to subsection (1) of this section. (6) A broker acting as a buyer's or tenant's agent may cooperate with other brokers but may not engage or create any subagents.

C.R.S. § 12-10-406 Dual agent

12-10-406. Dual agent. A broker shall not establish dual agency with any seller, landlord, buyer, or tenant.

C.R.S. § 12-10-407 Transaction-broker

12-10-407. Transaction-broker. (1) A broker engaged as a transaction-broker is not an agent for either party. (2) A transaction-broker shall have the following obligations and responsibilities: (a) To perform the terms of any written or oral agreement made with any party to the transaction; (b) To exercise reasonable skill and care as a transaction-broker, including, but not limited to: (I) Presenting all offers and counteroffers in a timely manner regardless of whether the property is subject to a contract for sale or lease or letter of intent; (II) Advising the parties regarding the transaction and suggesting that the parties obtain expert advice as to material matters about which the transaction-broker knows but the specifics of which are beyond the expertise of the broker; (III) Accounting in a timely manner for all money and property received; (IV) Keeping the parties fully informed regarding the transaction; (V) Assisting the parties in complying with the terms and conditions of any contract including closing the transaction; (VI) Disclosing to all prospective buyers or tenants any adverse material facts actually known by the broker including but not limited to adverse material facts pertaining to the title, the physical condition of the property, any defects in the property, and any environmental hazards affecting the property required by law to be disclosed; (VII) Disclosing to any prospective seller or landlord all adverse material facts actually known by the broker including but not limited to adverse material facts pertaining to the buyer's or tenant's financial ability to perform the terms of the transaction and the buyer's intent to occupy the property as a principal residence; and (VIII) Informing the parties that as seller and buyer or as landlord and tenant they shall not be vicariously liable for any acts of the transaction-broker; (c) To comply with all requirements of this article 10 and any rules promulgated pursuant to this article 10; and (d) To comply with any applicable federal, state, or local laws, rules, regulations, or ordinances including fair housing and civil rights statutes or regulations. (3) The following information shall not be disclosed by a transaction-broker without the informed consent of all parties: (a) That a buyer or tenant is willing to pay more than the purchase price or lease rate offered for the property; (b) That a seller or landlord is willing to accept less than the asking price or lease rate for the property; (c) What the motivating factors are for any party buying, selling, or leasing the property; (d) That a seller, buyer, landlord, or tenant will agree to financing terms other than those offered; (e) Any facts or suspicions regarding circumstances that may psychologically impact or stigmatize any real property pursuant to section 38-35.5-101; or (f) Any material information about the other party unless disclosure is required by law or failure to disclose the information would constitute fraud or dishonest dealing. (4) A transaction-broker has no duty to conduct an independent inspection of the property for the benefit of the buyer or tenant and has no duty to independently verify the accuracy or completeness of statements made by the seller, landlord, or independent inspectors. (5) A transaction-broker has no duty to conduct an independent investigation of the buyer's or tenant's financial condition or to verify the accuracy or completeness of any statement made by the buyer or tenant. (6) A transaction-broker may do the following without breaching any obligation or responsibility: (a) Show alternative properties not owned by the seller or landlord to a prospective buyer or tenant; (b) List competing properties for sale or lease; (c) Show properties in which the buyer or tenant is interested to other prospective buyers or tenants; and y statement made by the buyer or tenant. (6) A transaction-broker may do the following without breaching any obligation or responsibility: (a) Show alternative properties not owned by the seller or landlord to a prospective buyer or tenant; (b) List competing properties for sale or lease; (c) Show properties in which the buyer or tenant is interested to other prospective buyers or tenants; and (d) Serve as a single agent or transaction-broker for the same or for different parties in other real estate transactions. (7) There shall be no imputation of knowledge or information between any party and the transaction-broker or among persons within an entity engaged as a transaction-broker. (8) A transaction-broker may cooperate with other brokers but shall not engage or create any subagents.

C.R.S. § 12-10-408 Broker disclosures

12-10-408. Broker disclosures. (1) (a) Any person, firm, partnership, limited liability company, association, or corporation acting as a broker shall adopt a written office policy that identifies and describes the relationships offered to the public by the broker. (b) A broker shall not be required to offer or engage in any one or in all of the brokerage relationships enumerated in section 12-10-404, 12-10-405, or 12-10-407. (c) Written disclosures and written agreements required by subsection (2) of this section shall contain a statement to the seller, landlord, buyer, or tenant that different brokerage relationships are available that include buyer agency, seller agency, or status as a transaction-broker. Should the seller, landlord, buyer, or tenant request information or ask questions concerning a brokerage relationship not offered by the broker pursuant to the broker's written office policy enumerated in subsection (1)(a) of this section, the broker shall provide to the party a written definition of that brokerage relationship that has been promulgated by the real estate commission. (d) Disclosures made in accordance with this part 4 shall be sufficient to disclose brokerage relationships to the public. (2) (a) (I) Prior to engaging in any of the activities enumerated in section 12-10-201 (6), a transaction-broker shall disclose in writing to the party to be assisted that the broker is not acting as agent for the party and that the broker is acting as a transaction-broker. (II) As part of each relationship entered into by a broker pursuant to subsection (2)(a)(I) of this section, written disclosure shall be made that shall contain a signature block for the buyer, seller, landlord, or tenant to acknowledge receipt of the disclosure. The disclosure and acknowledgment, by itself, shall not constitute a contract with the broker. If the buyer, seller, landlord, or tenant chooses not to sign the acknowledgment, the broker shall note that fact on a copy of the disclosure and shall retain the copy. (III) If the transaction-broker undertakes any obligations or responsibilities in addition to or different from those set forth in section 12-10-407, the obligations or responsibilities shall be disclosed in a writing that shall be signed by the involved parties. (b) Prior to engaging in any of the activities enumerated in section 12-10-201 (6), a broker intending to establish a single agency relationship with a seller, landlord, buyer, or tenant shall enter into a written agency agreement with the party to be represented. The agreement shall disclose the duties and responsibilities specified in section 12-10-404 or 12-10-405, as applicable. Notice of the single agency relationship shall be furnished to any prospective party to the proposed transaction in a timely manner. (c) (I) Prior to engaging in any of the activities enumerated in section 12-10-201 (6), a broker intending to work with a buyer or tenant as an agent of the seller or landlord shall provide a written disclosure to the buyer or tenant that shall contain the following: (A) A statement that the broker is an agent for the seller or landlord and is not an agent for the buyer or tenant; (B) A list of the tasks that the agent intends to perform for the seller or landlord with the buyer or tenant; and (C) A statement that the buyer or tenant shall not be vicariously liable for the acts of the agent unless the buyer or tenant approves, directs, or ratifies the acts. (II) The written disclosure required pursuant to subsection (2)(c)(I) of this section shall contain a signature block for the buyer or tenant to acknowledge receipt of the disclosure. The disclosure and acknowledgment, by itself, shall not constitute a contract with the broker. If the buyer or tenant does not sign the disclosure, the broker shall note that fact on a copy of the disclosure and retain the copy. tten disclosure required pursuant to subsection (2)(c)(I) of this section shall contain a signature block for the buyer or tenant to acknowledge receipt of the disclosure. The disclosure and acknowledgment, by itself, shall not constitute a contract with the broker. If the buyer or tenant does not sign the disclosure, the broker shall note that fact on a copy of the disclosure and retain the copy. (d) A broker who has already established a relationship with one party to a proposed transaction shall advise at the earliest reasonable opportunity any other potential parties or their agents of the established relationship. (e) (I) Prior to engaging in any of the activities enumerated in section 12-10-201 (6), the seller, buyer, landlord, or tenant shall be advised in any written agreement with a broker that the brokerage relationship exists only with the designated broker, does not extend to the employing broker or to any other brokers employed or engaged by the employing broker who are not so designated, and does not extend to the brokerage company. (II) Nothing in this subsection (2)(e) shall be construed to limit the employing broker's or firm's responsibility to supervise licensees employed by the broker or firm nor to shield the broker or firm from vicarious liability.

C.R.S. § 12-10-409 Duration of relationship

12-10-409. Duration of relationship. (1) (a) The relationships set forth in this part 4 shall commence at the time that the broker is engaged by a party and shall continue until performance or completion of the agreement by which the broker was engaged. (b) If the agreement by which the broker was engaged is not performed or completed for any reason, the relationship shall end at the earlier of the following: (I) Any date of expiration agreed upon by the parties; (II) Any termination or relinquishment of the relationship by the parties; or (III) One year after the date of the engagement. (2) (a) Except as otherwise agreed to in writing and pursuant to subsection (2)(b) of this section, a broker engaged as a seller's agent or buyer's agent owes no further duty or obligation after termination or expiration of the contract or completion of performance. (b) Notwithstanding subsection (2)(a) of this section, a broker shall be responsible after termination or expiration of the contract or completion of performance for the following: (I) Accounting for all money and property related to and received during the engagement; and (II) Keeping confidential all information received during the course of the engagement that was made confidential by request or instructions from the engaging party unless: (A) The engaging party grants written consent to disclose the information; (B) Disclosure of the information is required by law; or (C) The information is made public or becomes public by the words or conduct of the engaging party or from a source other than the broker. (3) Except as otherwise agreed to in writing, a transaction-broker owes no further obligation or responsibility to the engaging party after termination or expiration of the contract for performance or completion of performance; except that the broker shall account for all money and property related to and received during the engagement.

C.R.S. § 12-10-410 Compensation

12-10-410. Compensation. (1) In any real estate transaction, the broker's compensation may be paid by the seller, the buyer, the landlord, the tenant, a third party, or by the sharing or splitting of a commission or compensation between brokers. (2) Payment of compensation shall not be construed to establish an agency relationship between the broker and the party who paid the compensation. (3) A seller or landlord may agree that a transaction-broker or single agent may share the commission or other compensation paid by the seller or landlord with another broker. (4) A buyer or tenant may agree that a single agent or transaction-broker may share the commission or other compensation paid by the buyer or tenant with another broker. (5) A buyer's or tenant's agent shall obtain the written approval of the buyer or tenant before the agent may propose to the seller's or landlord's agent that the buyer's or tenant's agent be compensated by sharing compensation paid by the seller or landlord. (6) Prior to entering into a brokerage or listing agreement or a contract to buy, sell, or lease, the identity of those parties, persons, or entities paying compensation or commissions to any broker shall be disclosed to the parties to the transaction. (7) A broker may be compensated by more than one party for services in a transaction if those parties have consented in writing to such multiple payments prior to entering into a contract to buy, sell, or lease.

C.R.S. § 12-10-411 Violations

12-10-411. Violations. The violation of any provision of this part 4 by a broker constitutes an act pursuant to section 12-10-217 (1)(m) for which the real estate commission may investigate and take administrative action against any such broker pursuant to sections 12-10-217 and 12-10-219.

C.R.S. § 12-10-501 Definitions

12-10-501. Definitions. As used in this part 5, unless the context otherwise requires: (1) "Accredited investor" has the same meaning as defined in the securities and exchange commission's rule 501 of regulation D, 17 CFR 230.501 (a). (1.5) "Commission" means the real estate commission established under section 12-10-206. (2) "Developer" means any person, as defined in section 2-4-401 (8), that participates as owner, promoter, or sales agent in the promotion, sale, or lease of a subdivision or any part thereof. (3) (a) "Subdivision" means any real property divided into twenty or more interests intended solely for residential use and offered for sale, lease, or transfer. (b) (I) The term "subdivision" also includes: (A) The conversion of an existing structure into a common interest community, as defined in article 33.3 of title 38, of twenty or more residential units; (B) A group of twenty or more time shares intended for residential use; and (C) A group of twenty or more proprietary leases in a cooperative housing corporation, as described in article 33.5 of title 38. (II) The term "subdivision" does not include: (A) The selling of memberships in campgrounds; (B) Bulk sales and transfers between developers; (C) Property upon which there has been or upon which there will be erected residential buildings that have not been previously occupied and where the consideration paid for the property includes the cost of the buildings; (D) Lots that, at the time of closing of a sale or occupancy under a lease, are situated on a street or road and street or road system improved to standards at least equal to streets and roads maintained by the county, city, or town in which the lots are located; have a feasible plan to provide potable water and sewage disposal; and have telephone and electricity facilities and systems adequate to serve the lots, which facilities and systems are installed and in place on the lots or in a street, road, or easement adjacent to the lots and which facilities and systems comply with applicable state, county, municipal, or other local laws, rules, and regulations; or any subdivision that has been or is required to be approved after September 1, 1972, by a regional, county, or municipal planning authority pursuant to article 28 of title 30 or article 23 of title 31; (E) Sales by public officials in the official conduct of their duties. (4) "Time share" means a time share estate, as defined in section 38-33-110 (5), or a time share use, but the term does not include group reservations made for convention purposes as a single transaction with a hotel, motel, or condominium owner or association. For the purposes of this subsection (4), "time share use" means a contractual or membership right of occupancy, that cannot be terminated at the will of the owner, for life or for a term of years, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or specific or nonspecific segment of real property, annually or on some other periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the property has been divided.

C.R.S. § 12-10-502 Registration required

12-10-502. Registration required. (1) Unless exempt under the provisions of section 12-10-501 (3), a developer, before selling, leasing, or transferring or agreeing or negotiating to sell, lease, or transfer, directly or indirectly, any subdivision or any part thereof, shall register pursuant to this part 5. (2) Upon approval by the commission, a developer who has applied for registration pursuant to section 12-10-503 may offer reservations in a subdivision during the pendency of the application and until the application is granted or denied if the fees for the reservations are held in trust by an independent third party and are fully refundable. (3) (a) Upon the commission's approval of a developer's subdivision registration pursuant to section 12-10-503, the developer may enter into binding purchase contracts with prospective buyers and accept earnest money deposits. Except as provided in subsection (3)(b) of this section, an earnest money deposit must be held in trust by an independent third party. (b) (I) Notwithstanding subsection (3)(a) of this section or any other provision in this part 5, upon subdivision registration approval, a developer may receive earnest money deposits from an accredited investor and use some or all of the funds toward development of a subdivision, but only if the purchase contract or other written disclosure contains a clear statement setting forth: (A) To whom the funds will be delivered; (B) When the delivery of the funds will occur; (C) How the funds will be used; and (D) Any restriction on the use of the funds. (II) A developer may receive earnest money deposits from an accredited investor pursuant to the requirements in subsection (3)(b)(I) of this section without first having to post a bond or other security. (c) This subsection (3) applies only if the subdivision is a time share estate, as defined in section 38-33-110 (5).

C.R.S. § 12-10-503 Application for registration

12-10-503. Application for registration. (1) Every person who is required to register as a developer under this part 5 shall submit to the commission an application that contains the information described in subsections (2) and (3) of this section. If the information is not submitted, the commission may deny the application for registration. If a developer is currently regulated in another state that has registration requirements substantially equivalent to the requirements of this part 5 or that provide substantially comparable protection to a purchaser, the commission may accept proof of the registration along with the developer's disclosure or equivalent statement from the other state in full or partial satisfaction of the information required by this section. In addition, the applicant shall be under a continuing obligation to notify the commission within ten days of any change in the information so submitted, and a failure to do so shall be a cause for disciplinary action. (2) (a) Registration information concerning the developer shall include: (I) The principal office of the applicant wherever situate; (II) The location of the principal office and the branch offices of the applicant in this state; (III) The names and residence and business addresses of all natural persons who have a twenty-four percent or greater financial or ultimate beneficial interest in the business of the developer, either directly or indirectly, as principal, manager, member, partner, officer, director, or stockholder, specifying each such person's capacity, title, and percentage of ownership. If no natural person has a twenty-four percent or greater financial or beneficial interest in the business of the developer, the information required in this subsection (2)(a)(III) shall be submitted regarding the natural person having the largest single financial or beneficial interest. (IV) The length of time and the locations where the applicant has been engaged in the business of real estate sales or development; (V) Any felony of which the applicant has been convicted within the preceding ten years. In determining whether a certificate of registration shall be issued to an applicant who has been convicted of a felony within such period of time, the commission shall be governed by the provisions of section 24-5-101. (VI) The states in which the applicant has had a license or registration similar to the developer's registration in this state granted, refused, suspended, or revoked or is currently the subject of an investigation or charges that could result in refusal, suspension, or revocation; (VII) Whether the developer or any other person financially interested in the business of the developer as principal, partner, officer, director, or stockholder has engaged in any activity that would constitute a violation of this part 5. (b) If the applicant is a corporate developer, a copy of the certificate of authority to do business in this state or a certificate of incorporation issued by the secretary of state shall accompany the application. (3) Registration information concerning the subdivision shall include: (a) The location of each subdivision from which sales are intended to be made; (b) The name of each subdivision and the trade, corporate, or partnership name used by the developer; (c) Evidence or certification that each subdivision offered for sale or lease is registered or will be registered in accordance with state or local requirements of the state in which each subdivision is located; (d) Copies of documents evidencing the title or other interest in the subdivision; (b) The name of each subdivision and the trade, corporate, or partnership name used by the developer; (c) Evidence or certification that each subdivision offered for sale or lease is registered or will be registered in accordance with state or local requirements of the state in which each subdivision is located; (d) Copies of documents evidencing the title or other interest in the subdivision; (e) If there is a blanket encumbrance upon the title of the subdivision or any other ownership, leasehold, or contractual interest that could defeat all possessory or ownership rights of a purchaser, a copy of the instruments creating the liens, encumbrances, or interests, with dates as to the recording, along with documentary evidence that any beneficiary, mortgagee, or trustee of a deed of trust or any other holder of the ownership, leasehold, or contractual interest will release any lot or time share from the blanket encumbrance or has subordinated its interest in the subdivision to the interest of any purchaser or has established any other arrangement acceptable to the commission that protects the rights of the purchaser; (f) A statement that standard commission-approved forms will be used for contracts of sale, notes, deeds, and other legal documents used to effectuate the sale or lease of the subdivision or any part thereof, unless the forms to be used were prepared by an attorney representing the developer; (g) A true statement by the developer that, in any conveyance by means of an installment contract, the purchaser shall be advised to record the contract with the proper authorities in the jurisdiction in which the subdivision is located. In no event shall any developer specifically prohibit the recording of the installment contract. (h) A true statement by the developer of the provisions for and availability of legal access, sewage disposal, and public utilities, including water, electricity, gas, and telephone facilities, in the subdivision offered for sale or lease, including whether such are to be a developer or purchaser expense; (i) A true statement as to whether or not a survey of each lot, site, or tract offered for sale or lease from the subdivision has been made and whether survey monuments are in place; (j) A true statement by the developer as to whether or not a common interest community is to be or has been created within the subdivision and whether or not the common interest community is or will be a small cooperative or small and limited expense planned community created pursuant to section 38-33.3-116; (k) A true statement by the developer concerning the existence of any common interest community association, including whether the developer controls funds in the association. (4) The commission may disapprove the form of the documents submitted pursuant to subsection (3)(f) of this section and may deny an application for registration until such time as the applicant submits the documents in a form that is satisfactory to the commission. (5) Each registration shall be accompanied by fees established pursuant to section 12-10-215.

C.R.S. § 12-10-504 Registration of developers

12-10-504. Registration of developers. (1) The commission shall register all applicants who meet the requirements of this part 5 and provide each applicant so registered with a certificate indicating that the developer named therein is registered in the state of Colorado as a subdivision developer. The developer that will sign as seller or lessor in any contract of sale, lease, or deed purporting to convey any site, tract, lot, or divided or undivided interest from a subdivision shall secure a certificate before offering, negotiating, or agreeing to sell, lease, or transfer before the sale, lease, or transfer is made. If such person or entity is acting only as a trustee, the beneficial owner of the subdivision shall secure a certificate. A certificate issued to a developer shall entitle all sales agents and employees of the developer to act in the capacity of a developer as agent for the developer. The developer shall be responsible for all actions of the sales agents and employees. (2) All certificates issued under this section shall expire on December 31 following the date of issuance. In the absence of any reason or condition under this part 5 that might warrant the denial or revocation of a registration, a certificate shall be renewed by payment of a renewal fee established pursuant to section 12-10-215. A registration that has expired may be reinstated within two years after the expiration upon payment of the appropriate renewal fee if the applicant meets all other requirements of this part 5. (3) All fees collected under this part 5 shall be deposited in accordance with section 12-10-214. (4) With regard to any subdivision for which the information required by section 12-10-503 (3) has not been previously submitted to the commission, each registered developer shall register the subdivision by providing the commission with the information before sale, lease, or transfer, or negotiating or agreeing to sell, lease, or transfer, any such subdivision or any part thereof.

C.R.S. § 12-10-505 Refusal, revocation, or suspension of registration - letter of admonition - probation

12-10-505. Refusal, revocation, or suspension of registration - letter of admonition - probation. (1) The commission may impose an administrative fine not to exceed two thousand five hundred dollars for each separate offense; may issue a letter of admonition; may place a registrant on probation under its close supervision on such terms and for such time as it deems appropriate; and may refuse, revoke, or suspend the registration of any developer or registrant if, after an investigation and after notice and a hearing pursuant to the provisions of section 24-4-104, the commission determines that the developer or any director, officer, or stockholder with controlling interest in the corporation: (a) Has used false or misleading advertising or has made a false or misleading statement or a concealment in his or her application for registration; (b) Has misrepresented or concealed any material fact from a purchaser of any interest in a subdivision; (c) Has employed any device, scheme, or artifice with intent to defraud a purchaser of any interest in a subdivision; (d) Has been convicted of or pled guilty or nolo contendere to a crime involving fraud, deception, false pretense, theft, misrepresentation, false advertising, or dishonest dealing in any court; (e) Has disposed of, concealed, diverted, converted, or otherwise failed to account for any funds or assets of any purchaser of any interest in a subdivision or any homeowners' association under the control of the developer or director, officer, or stockholder; (f) Has failed to comply with any stipulation or agreement made with the commission; (g) Has failed to comply with or has violated any provision of this article 10, including any failure to comply with the registration requirements of section 12-10-503, or any lawful rule promulgated by the commission under this article 10; (h) Has refused to honor a buyer's request to cancel a contract for the purchase of a time share or subdivision or part thereof if the request was made within five calendar days after execution of the contract and was made either by telegram, mail, or hand delivery. A request is considered made if by electronic mail when sent, if by mail when postmarked, or if by hand delivery when delivered to the seller's place of business. No developer shall employ a contract that contains any provision waiving a buyer's right to such a cancellation period. (i) Has committed any act that constitutes a violation of the "Colorado Consumer Protection Act", article 1 of title 6; (j) Has employed any sales agent or employee who violates the provisions of this part 5; (k) Has used documents for sales or lease transactions other than those described in section 12-10-503 (3)(f); (l) Has failed to disclose encumbrances to prospective purchasers or has failed to transfer clear title at the time of sale, if the parties agreed that the transfer would be made at that time. (2) A disciplinary action relating to the business of subdivision development taken by any other state or local jurisdiction or the federal government shall be deemed to be prima facie evidence of grounds for disciplinary action, including denial of registration, under this part 5. This subsection (2) shall apply only to such disciplinary actions as are substantially similar to those set out as grounds for disciplinary action or denial of registration under this part 5. (3) Any hearing held under this section shall be in accordance with the procedures established in sections 24-4-105 and 24-4-106. for disciplinary action, including denial of registration, under this part 5. This subsection (2) shall apply only to such disciplinary actions as are substantially similar to those set out as grounds for disciplinary action or denial of registration under this part 5. (3) Any hearing held under this section shall be in accordance with the procedures established in sections 24-4-105 and 24-4-106. (4) When a complaint or investigation discloses an instance of misconduct that, in the opinion of the commission, does not initially warrant formal action by the commission but that should not be dismissed as being without merit, the commission may send a letter of admonition by certified mail, return receipt requested, to the registrant who is the subject of the complaint or investigation and a copy thereof to any person making the complaint. The letter shall advise the registrant that he or she has the right to request in writing, within twenty days after proven receipt, that formal disciplinary proceedings be initiated against him or her to adjudicate the propriety of the conduct upon which the letter of admonition is based. If the request is timely made, the letter of admonition shall be deemed vacated, and the matter shall be processed by means of formal disciplinary proceedings. (5) All administrative fines collected pursuant to this section shall be transmitted to the state treasurer, who shall credit the same to the division of real estate cash fund.

C.R.S. § 12-10-506 Powers of commission - injunction - rules

12-10-506. Powers of commission - injunction - rules. (1) The commission may apply to a court of competent jurisdiction for an order enjoining any act or practice that constitutes a violation of this part 5, and, upon a showing that a person is engaging or intends to engage in any such act or practice, an injunction, restraining order, or other appropriate order shall be granted by the court, regardless of the existence of another remedy therefor. Any notice, hearing, or duration of any injunction or restraining order shall be made in accordance with the provisions of the Colorado rules of civil procedure. (2) The commission may apply to a court of competent jurisdiction for the appointment of a receiver if it determines that the appointment is necessary to protect the property or interests of purchasers of a subdivision or part thereof. (3) The commission shall issue or deny a certificate or additional registration within sixty days from the date of receipt of the application by the commission. The commission may make necessary investigations and inspections to determine whether any developer has violated this part 5 or any lawful rule promulgated by the commission. If, after an application by a developer has been submitted pursuant to section 12-10-503 or information has been submitted pursuant to section 12-10-504, the commission determines that an inspection of a subdivision is necessary, it shall complete the inspection within sixty days from the date of filing of the application or information, or the right of inspection is waived and the lack thereof shall not be grounds for denial of a registration. (4) The commission, the director, or the administrative law judge appointed for a hearing may issue a subpoena compelling the attendance and testimony of witnesses and the production of books, papers, or records pursuant to an investigation or hearing of the commission. Any such subpoena shall be served in the same manner as for subpoenas issued by district courts. (5) The commission has the power to make any rules necessary for the enforcement or administration of this part 5. (6) The commission shall adopt, promulgate, amend, or repeal such rules as are necessary to: (a) Require written disclosures to any purchasers as provided in subsection (7) of this section and to prescribe and require that standardized forms be used by subdivision developers in connection with the sale or lease of a subdivision or any part thereof, except as otherwise provided in section 12-10-503 (3)(f); and (b) Require that developers maintain certain business records for a period of at least seven years. (7) The commission may require any developer to make written disclosures to purchasers in their contracts of sale or by separate written documents if the commission finds that the disclosures are necessary for the protection of the purchasers. (8) The commission or its designated representative may audit the accounts of any homeowners' association, the funds of which are controlled by a developer.

C.R.S. § 12-10-507 Violation - penalty

12-10-507. Violation - penalty. Any person who fails to register as a developer in violation of this part 5 commits a class 6 felony and shall be punished as provided in section 18-1.3-401. Any agreement or contract for the sale or lease of a subdivision or part thereof shall be voidable by the purchaser and unenforceable by the developer unless the developer was duly registered under the provisions of this part 5 when the agreement or contract was made.

C.R.S. § 12-10-508 Repeal of part - subject to review

12-10-508. Repeal of part - subject to review. This part 5 is repealed, effective September 1, 2026. Before the repeal, this part 5 is scheduled for review in accordance with section 24-34-104.

C.R.S. § 12-10-601 Legislative declaration

12-10-601. Legislative declaration. The general assembly finds, determines, and declares that sections 12-10-602 to 12-10-623 are enacted pursuant to the requirements of the "Real Estate Appraisal Reform Amendments", Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, 12 U.S.C. secs. 3331 to 3351. The general assembly further finds, determines, and declares that sections 12-10-602 to 12-10-623 are intended to implement the requirements of federal law in the least burdensome manner to real estate appraisers and appraisal management companies. Licensed ad valorem appraisers licensed under this article 10 are not regulated by the federal "Real Estate Appraisal Reform Amendments", Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, 12 U.S.C. secs. 3331 to 3351.

C.R.S. § 12-10-602 Definitions

12-10-602. Definitions. As used in this part 6, unless the context otherwise requires: (1) (a) "Appraisal", "appraisal report", or "real estate appraisal" means a written or oral analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate that is transmitted to the client upon the completion of an assignment. These terms include a valuation, which is an opinion of the value of real estate, and an analysis, which is a general study of real estate not specifically performed only to determine value; except that the terms include a valuation completed by an appraiser employee of a county assessor as defined in section 39-1-102 (2). (b) The terms do not include an analysis, valuation, opinion, conclusion, notation, or compilation of data by an officer, director, regularly salaried employee, or agent of a financial institution or its affiliate, made for internal use only by the financial institution or affiliate, concerning an interest in real estate that is owned or held as collateral by the financial institution or affiliate and that is not represented or deemed to be an appraisal except to the financial institution, the agencies regulating the financial institution, and any secondary markets that purchase real estate secured loans. An appraisal prepared by an officer, director, regularly salaried employee, or agent of a financial institution who is not licensed or certified under this part 6 must contain a written notice that the preparer is not licensed or certified as an appraiser under this part 6. (c) "Appraisal", "appraisal report", or "real estate appraisal" does not include a federally authorized "waiver valuation", as defined in 49 CFR 24.2 (a)(33), as amended. (2) (a) "Appraisal management company" or "AMC" means, in connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization, any external third party authorized either by a creditor in a consumer credit transaction secured by a consumer's principal dwelling that oversees an appraiser panel or by an underwriter of, or other principal in, the secondary mortgage markets that oversees an appraiser panel to: (I) Recruit, select, and retain appraisers; (II) Contract with licensed and certified appraisers to perform appraisal assignments; (III) Manage the process of having an appraisal performed, including providing administrative duties such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and reimbursing appraisers for services performed; or (IV) Review and verify the work of appraisers. (b) "Appraisal management company" or "AMC" does not include: (I) A corporation, limited liability company, sole proprietorship, or other entity that directly performs appraisal services; (II) A corporation, limited liability company, sole proprietorship, or other entity that does not contract with appraisers for appraisal services, but that solely distributes orders to a client-selected panel of appraisers; and (III) A mortgage company, or its subsidiary, that manages a panel of appraisers who are engaged to provide appraisal services on mortgage loans either originated by the mortgage company or funded by the mortgage company with its own funds. (3) "Board" means the board of real estate appraisers created in section 12-10-603. (4) "Client" means the party or parties who engage an appraiser or an appraisal management company for a specific assignment. anages a panel of appraisers who are engaged to provide appraisal services on mortgage loans either originated by the mortgage company or funded by the mortgage company with its own funds. (3) "Board" means the board of real estate appraisers created in section 12-10-603. (4) "Client" means the party or parties who engage an appraiser or an appraisal management company for a specific assignment. (5) "Consulting services" means services performed by an appraiser that do not fall within the definition of an "independent appraisal" in subsection (7) of this section. "Consulting services" includes marketing, financing and feasibility studies, valuations, analyses, and opinions and conclusions given in connection with real estate brokerage, mortgage banking, and counseling and advocacy in regard to property tax assessments and appeals thereof; except that, if in rendering the services the appraiser acts as a disinterested third party, the work is deemed an independent appraisal and not a consulting service. Nothing in this subsection (5) precludes a person from acting as an expert witness in valuation appeals. (5.5) "Evaluation" means an opinion about the market value of real estate that is: (a) Made in accordance with the 2010 "Interagency Appraisal and Evaluation Guidelines" developed by the following federal agencies that regulate financial institutions: (I) The federal reserve board; (II) The office of the comptroller of the currency; (III) The federal deposit insurance corporation; (IV) The office of thrift supervision; and (V) The national credit union administration; and (b) Provided to a financial institution for use in a real-estate-related transaction for which an appraisal is not required by the federal agencies listed in subsection (5.5)(a) of this section. (6) "Financial institution" means any "bank" or "savings association", as those terms are defined in 12 U.S.C. sec. 1813, any state bank incorporated under title 11, any state or federally chartered credit union, or any company that has direct or indirect control over any of those entities. (7) "Independent appraisal" means an engagement for which an appraiser is employed or retained to act as a disinterested third party in rendering an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in or aspects of identified real estate. (8) (a) "Panel" or "appraiser panel" means a network, list, or roster of licensed or certified appraisers approved by an AMC to perform appraisals as independent contractors for the AMC. (b) Appraisers on an AMC's appraiser panel include both: (I) Appraisers accepted by the AMC for consideration for future appraisal assignments in covered transactions or for secondary mortgage market participants in connection with covered transactions; and (II) Appraisers engaged by the AMC to perform one or more appraisals in covered transactions or for secondary mortgage market participants in connection with covered transactions. (c) An appraiser is an independent contractor for purposes of this subsection (8) if the appraiser is treated as an independent contractor by the AMC for purposes of federal income taxation. (9) (a) "Real estate appraiser" or "appraiser" means a person who provides an estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and includes one who estimates value and who possesses the necessary qualifications, ability, and experience to execute or direct the appraisal of real property. by the AMC for purposes of federal income taxation. (9) (a) "Real estate appraiser" or "appraiser" means a person who provides an estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and includes one who estimates value and who possesses the necessary qualifications, ability, and experience to execute or direct the appraisal of real property. (b) "Real estate appraiser" or "appraiser" does not include: (I) A person who conducts appraisals strictly of personal property; (II) A person licensed as a broker pursuant to part 2 of this article 10 who provides an opinion of value that is not represented as an appraisal and is not used for purposes of obtaining financing; (III) A person licensed as a certified public accountant pursuant to article 100 of this title 12, and otherwise regulated, as long as the person does not represent his or her opinions of value for real estate as an appraisal; (IV) A corporation, acting through its officers or regularly salaried employees, when conducting a valuation of real estate property rights owned, to be purchased, or sold by the corporation; (V) A person who conducts appraisals strictly of water rights or of mineral rights; (VI) A right-of-way acquisition agent, an appraiser who is licensed and certified pursuant to this part 6, or any other individual who has sufficient understanding of the local real estate market to be qualified to make a waiver valuation when the agent, appraiser, or other qualified individual is employed by or contracts with a public entity and provides an opinion of value that is not represented as an appraisal and when, for any purpose, the property or portion of property being valued is valued at twenty-five thousand dollars or less, as permitted by federal law and 49 CFR 24.102 (c)(2), as amended; (VII) An officer, director, regularly salaried employee, or agent of a financial institution or its affiliate who makes, for internal use only by the financial institution or affiliate, an analysis, evaluation, opinion, conclusion, notation, or compilation of data with respect to an appraisal so long as the person does not make a written adjustment of the appraisal's conclusion as to the value of the subject real property; (VIII) An officer, director, regularly salaried employee, or agent of a financial institution or its affiliate who makes an internal analysis, valuation, opinion, conclusion, notation, or compilation of data concerning an interest in real estate that is owned or held as collateral by the financial institution or its affiliate; or (IX) A person who represents property owners as an advocate in tax or valuation protests and appeals pursuant to title 39. (10) "Uniform standards of professional appraisal practice" means the standards for the appraisal profession in the United States, as adopted by congress in 1989 through the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", Pub.L. 101-73, as amended, and that the Appraisal Foundation periodically updates.

C.R.S. § 12-10-603 Board of real estate appraisers - creation - compensation - immunity - legislative declaration - subject to review - repeal of part

12-10-603. Board of real estate appraisers - creation - compensation - immunity - legislative declaration - subject to review - repeal of part. (1) (a) There is hereby created in the division of real estate a board of real estate appraisers consisting of seven members appointed by the governor with the consent of the senate. Of the members, three shall be licensed or certified appraisers, one of whom shall have expertise in eminent domain matters; one shall be a county assessor in office; one shall be an officer or employee of a commercial bank experienced in real estate lending; one shall be an officer or employee of an appraisal management company; and one shall be a member of the public at large not engaged in any of the businesses represented by the other members of the board. (b) Members of the board shall hold office for terms of three years. In the event of a vacancy by death, resignation, removal, or otherwise, the governor shall appoint a member to fill the unexpired term. The governor has the authority to remove any member for misconduct, neglect of duty, or incompetence. (2) (a) The board is a type 1 entity, as defined in section 24-1-105, and exercises its powers and performs its duties and functions under the division of real estate. (b) The general assembly finds, determines, and declares that the organization of the board under the division as a type 1 entity will provide the autonomy necessary to avoid potential conflicts of interest between the responsibility of the board in the regulation of real estate appraisers and the responsibility of the division in the regulation of real estate brokers and salespersons. The general assembly further finds, determines, and declares that the placement of the board as a type 1 entity under the division is consistent with the organizational structure of state government. (3) Each member of the board shall receive the same compensation and reimbursement of expenses as is provided for members of boards and commissions in the division of professions and occupations pursuant to section 12-20-103 (6). Payment for all per diem compensation and expenses shall be made out of annual appropriations from the division of real estate cash fund provided for in section 12-10-605. (4) Members of the board, consultants, and expert witnesses are immune from liability in any civil action based upon any disciplinary proceedings or other official acts they performed in good faith pursuant to this part 6. (5) A majority of the board constitutes a quorum for the transaction of all business, and actions of the board require a vote of a majority of the members present in favor of the action taken. (6) This part 6 is repealed, effective September 1, 2031. Before the repeal, this part 6 is scheduled for review in accordance with section 24-34-104.

C.R.S. § 12-10-604 Powers and duties of the board - rules

12-10-604. Powers and duties of the board - rules. (1) In addition to all other powers and duties imposed upon it by law, the board has the following powers and duties: (a) (I) To promulgate and amend, as necessary, rules pursuant to article 4 of title 24 for the implementation and administration of this part 6 and as required to comply with the federal "Real Estate Appraisal Reform Amendments", Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, 12 U.S.C. secs. 3331 to 3351, and with any requirements imposed by amendments to that federal law. (II) The board shall not establish any requirements that are more stringent than the requirements of any applicable federal law. (III) Licensed ad valorem appraisers are not regulated by the federal "Real Estate Appraisal Reform Amendments", Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, 12 U.S.C. secs. 3331 to 3351, but the board shall adopt rules regarding minimum qualifications and standards of practice for licensed ad valorem appraisers. (IV) In any list or registry it maintains, the board shall identify or separately account for any appraisal management company that oversees a panel of more than fifteen certified or licensed appraisers in Colorado, or twenty-five or more certified or licensed appraisers in all states in which it does business, within a given year. (b) To charge application, examination, and license and certificate renewal fees established pursuant to section 12-10-215 from all applicants for licensure, certification, examination, and renewal under this part 6. The board shall not refund any fees received from applicants seeking licensure, certification, examination, or renewal. (c) Through the department and subject to appropriations made to the department, to employ administrative law judges, appointed pursuant to part 10 of article 30 of title 24, on a full-time or part-time basis to conduct any hearings required by this part 6; (d) To issue, deny, or refuse to renew a license or certificate pursuant to this part 6; (e) To take disciplinary actions in conformity with this part 6; (f) To delegate to the director the administration and enforcement of this part 6 and the authority to act on behalf of the board on occasions and in circumstances that the board directs; (g) (I) To develop, purchase, or contract for any examination required for the administration of this part 6, to offer each examination at least twice a year or, if demand warrants, at more frequent intervals, and to establish a passing score for each examination that reflects a minimum level of competency. (II) If study materials are developed by a testing company or other entity, the board shall make the materials available to persons desiring to take examinations pursuant to this part 6. The board may charge fees for the materials to defray any costs associated with making the materials available. (h) In compliance with article 4 of title 24, to make investigations; subpoena persons and documents, which subpoenas may be enforced by a court of competent jurisdiction if not obeyed; hold hearings; and take evidence in all matters relating to the exercise of the board's power under this part 6; (i) Pursuant to section 1119 (b) of Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", Pub.L. 101-73, as amended, to apply, if necessary, for a federal waiver of the requirement relating to certification or licensing of a person to perform appraisals and to make the necessary written determinations specified in that section for purposes of making the application; and (j) If the board has reasonable cause to believe that a person, partnership, limited liability company, or corporation is violating this part 6, to enter an order requiring the individual or appraisal management company to cease and desist the violation. son to perform appraisals and to make the necessary written determinations specified in that section for purposes of making the application; and (j) If the board has reasonable cause to believe that a person, partnership, limited liability company, or corporation is violating this part 6, to enter an order requiring the individual or appraisal management company to cease and desist the violation. (k) Repealed. (2) The board shall maintain or preserve, for seven years, licensing history records of a person licensed or certified under this part 6. Complaints of record in the office of the board and board investigations, including board investigative files, are closed to public inspection. Stipulations and final agency orders are public record and are subject to sections 24-72-203 and 24-72-204.

C.R.S. § 12-10-605 Fees, penalties, and fines collected under part 6

12-10-605. Fees, penalties, and fines collected under part 6. All fees, penalties, and fines collected pursuant to this part 6, not including fees retained by contractors pursuant to contracts entered into in accordance with section 12-10-203, 12-10-606, or 24-34-101, shall be transmitted to the state treasurer, who shall credit the same to the division of real estate cash fund, created in section 12-10-215.

C.R.S. § 12-10-606 Qualifications for licensing and certification of appraisers - continuing education - rules - evaluations - definitions

12-10-606. Qualifications for licensing and certification of appraisers - continuing education - rules - evaluations - definitions. (1) (a) The board shall, by rule, prescribe requirements for the initial licensing or certification of persons under this part 6 to meet the requirements of the "Real Estate Appraisal Reform Amendments", Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, 12 U.S.C. secs. 3331 to 3351, and shall develop, purchase, or contract for examinations to be passed by applicants. The board shall not establish any requirements for initial licensing or certification that are more stringent than the requirements of any applicable federal law; except that all applicants shall pass an examination offered by the board. If there is no applicable federal law, the board shall consider and may use as guidelines the most recent available criteria published by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization. (b) The four levels of appraiser licensure and certification, pursuant to subsection (1)(a) of this section, are defined as follows: (I) "Certified general appraiser" means an appraiser meeting the requirements set by the board for general certification. (II) "Certified residential appraiser" means an appraiser meeting the requirements set by the board for residential certification. (III) "Licensed ad valorem appraiser" means an appraiser meeting the requirements set by the board for ad valorem appraiser certification. Only a county assessor, employee of a county assessor's office, or employee of the division of property taxation in the department of local affairs may obtain or possess an ad valorem appraiser certification. (IV) "Licensed appraiser" means an appraiser meeting the requirements set by the board for a license. (c) A county assessor or employee of a county assessor's office who is a licensed ad valorem appraiser may not perform real estate appraisals outside of his or her official duties. (d) The board shall transfer persons employed in a county assessor's office or in the division of property taxation in the department of local affairs who are registered appraisers as of July 1, 2013, to the category of licensed ad valorem appraiser. The board shall allow these persons, until December 31, 2015, to meet any additional requirements imposed by the board pursuant to section 12-10-604 (1)(a). (2) (a) The board shall, by rule, prescribe continuing education requirements for persons licensed or certified as certified general appraisers, certified residential appraisers, or licensed appraisers as needed to meet the requirements of the "Real Estate Appraisal Reform Amendments", Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, 12 U.S.C. secs. 3331 to 3351. The board shall not establish any continuing education requirements that are more stringent than the requirements of any applicable federal law; except that all persons licensed or certified under this part 6 are subject to continuing education requirements. If there is no applicable federal law, the board shall consider and may use as guidelines the most recent available criteria published by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization. t than the requirements of any applicable federal law; except that all persons licensed or certified under this part 6 are subject to continuing education requirements. If there is no applicable federal law, the board shall consider and may use as guidelines the most recent available criteria published by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization. (b) The board shall, by rule, prescribe continuing education requirements for licensed ad valorem appraisers. (3) Notwithstanding any provision of this section to the contrary, the criteria established by the board for the licensing or certification of appraisers pursuant to this part 6 shall not include membership or lack of membership in any appraisal organization. (4) (a) Subject to section 12-10-619 (2), all appraiser employees of county assessors shall be licensed or certified as provided in subsections (1) and (2) of this section. Obtaining and maintaining a license or certificate under either subsection (1) or (2) of this section entitles an appraiser employee of a county assessor to perform all real estate appraisals required to fulfill the person's official duties. (b) Appraiser employees of county assessors who are employed to appraise real property are subject to this part 6; except that appraiser employees of county assessors who are employed to appraise real property are not subject to disciplinary actions by the board on the ground that they have performed appraisals beyond their level of competency when appraising real estate in fulfillment of their official duties. County assessors, if licensed or certified as provided in subsections (1) and (2) of this section, are not subject to disciplinary actions by the board on the ground that they have performed appraisals beyond their level of competency when appraising real estate in fulfillment of their official duties. (c) The county in which an appraiser employee of a county assessor is employed shall pay all reasonable costs incurred by the appraiser employee of the county assessor to obtain and maintain a license or certificate pursuant to this section. (5) The board shall not issue an appraiser's license as referenced in subsection (1)(b)(IV) of this section unless the applicant has met the minimum appraisal experience requirement established by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization. (6) (a) The board shall not issue a license or certification until the applicant demonstrates that the applicant meets the fitness standards established by board rule and submits a set of fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. Each person submitting a set of fingerprints shall pay the fee established by the Colorado bureau of investigation for conducting the fingerprint-based criminal history record check to the bureau. Upon completion of the fingerprint-based criminal history record check, the bureau shall forward the results to the board. The board shall require a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. The board may deny an application for licensure or certification based on the outcome of the record check and may establish criminal history requirements more stringent than those established by any applicable federal law. At a minimum, the board shall adopt the criminal history requirements established by any applicable federal law. ay the costs associated with a name-based judicial record check. The board may deny an application for licensure or certification based on the outcome of the record check and may establish criminal history requirements more stringent than those established by any applicable federal law. At a minimum, the board shall adopt the criminal history requirements established by any applicable federal law. (b) An applicant for certification as a licensed ad valorem appraiser is not subject to the fingerprinting and background check requirements of subsection (6)(a) of this section. (7) (a) The board shall, by rule, authorize an exemption from compliance with the uniform standards of professional appraisal practice for a licensed appraiser performing an evaluation; except that the board's rules must not exempt a licensed appraiser performing an evaluation from complying with the ethics, record-keeping, competency, and scope-of-work standards of the uniform standards of professional appraisal practice. (b) A licensed appraiser may perform an evaluation if conducted in accordance with board rules promulgated under subsection (7)(a) of this section.

C.R.S. § 12-10-607 Appraisal management companies - application for license - exemptions

12-10-607. Appraisal management companies - application for license - exemptions. (1) An applicant shall apply for a license as an appraisal management company, or as a controlling appraiser, to the board in a manner prescribed by the board. (2) The board may grant appraisal management company licenses to individuals, partnerships, limited liability companies, or corporations. A partnership, limited liability company, or corporation, in its application for a license, shall designate a controlling appraiser who is actively certified in a state recognized by the appraisal subcommittee of the federal financial institutions examination council or its successor entity. The controlling appraiser is responsible for the licensed practices of the partnership, limited liability company, or corporation and all persons employed by the entity. The application of the partnership, limited liability company, or corporation and the application of the appraiser designated by it as the controlling appraiser shall be filed with the board. The board has jurisdiction over the appraiser so designated and over the partnership, limited liability company, or corporation. (3) The board shall not issue a license to any partnership, limited liability company, or corporation unless and until the appraiser designated by the partnership, limited liability company, or corporation as controlling appraiser and each individual who owns more than ten percent of the entity demonstrates that the person meets the fitness standards established by board rule and submits a set of fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. Each person submitting a set of fingerprints shall pay the fee established by the Colorado bureau of investigation for conducting the fingerprint-based criminal history record check to the bureau. Upon completion of the fingerprint-based criminal history record check, the bureau shall forward the results to the board. The board shall require a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. The board may deny an application for licensure or refuse to renew a license based on the outcome of the record check. The board may require criminal history requirements more stringent than those established by any applicable federal law. At a minimum, the board shall adopt the criminal history requirements established by any applicable federal law. (4) The board shall not issue a license to any partnership, limited liability company, or corporation if the appraiser designated by the entity as controlling appraiser has previously had, in any state, an appraiser registration, license, or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked. A disciplinary action resulting in refusal, denial, cancellation, surrender in lieu of revocation, or revocation relating to a registration, license, or certification as an appraiser registered, licensed, or certified under this part 6 or any related occupation in any other state, territory, or country for disciplinary reasons is prima facie evidence of grounds for denial of a license by the board. disciplinary action resulting in refusal, denial, cancellation, surrender in lieu of revocation, or revocation relating to a registration, license, or certification as an appraiser registered, licensed, or certified under this part 6 or any related occupation in any other state, territory, or country for disciplinary reasons is prima facie evidence of grounds for denial of a license by the board. (5) The board shall not issue a license to any partnership, limited liability company, or corporation if it is owned, in whole or in part, directly or indirectly, by any person who has had, in any state, an appraiser license, registration, or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked. A disciplinary action resulting in refusal, denial, cancellation, surrender in lieu of revocation, or revocation relating to a license, registration, or certification as an appraiser licensed, registered, or certified under this part 6 or any related occupation in any other state, territory, or country for disciplinary reasons is prima facie evidence of grounds for denial of a license by the board. (6) The board may deny an application for a license for any partnership, limited liability company, or corporation if the partnership, limited liability company, or corporation has previously had a license revoked or surrendered a license in lieu of revocation. A disciplinary action resulting in the surrender in lieu of revocation or the revocation of a license as an appraisal management company under this part 6 or any related occupation in any other state, territory, or country for disciplinary reasons may be deemed to be prima facie evidence of grounds for denial of a license by the board. (7) Each appraisal management company must maintain a definite place of business. If the appraisal management company is domiciled in another state, the appraiser designated by the appraisal management company as controlling appraiser is responsible for supervising all licensed activities that occur in Colorado. All licensed actions occurring within the state of Colorado must occur under the name under which the appraisal management company is licensed or its trade name adopted in accordance with Colorado law. (8) An application that is submitted by an appraisal management company that is: (a) A partnership must be properly registered with the Colorado department of revenue or properly filed with the Colorado secretary of state and in good standing, proof of which must be included in the application. If an assumed or trade name is to be used, it must be properly filed with the Colorado department of revenue or filed and accepted by the Colorado secretary of state, proof of which must be included with the application. (b) A limited liability company must be properly registered with the Colorado secretary of state and in good standing, proof of which must be included with the application. If an assumed or trade name is to be used, it must be properly filed with the Colorado secretary of state, proof of which must be included with the application. y of state, proof of which must be included with the application. (b) A limited liability company must be properly registered with the Colorado secretary of state and in good standing, proof of which must be included with the application. If an assumed or trade name is to be used, it must be properly filed with the Colorado secretary of state, proof of which must be included with the application. (c) A corporation must be registered as a foreign corporation or properly incorporated with the Colorado secretary of state and in good standing, proof of which must be included with the application. If an assumed or trade name is to be used, it must be properly filed with the Colorado secretary of state, proof of which must be included with the application. (9) Financial institutions and appraisal management company subsidiaries that are owned and controlled by an insured depository institution, as defined in 12 U.S.C. sec. 1813 (c)(2), as amended, and regulated by the federal office of the comptroller of the currency, the board of governors of the federal reserve system, or the federal deposit insurance corporation are not required to register with or be licensed by the board. This exemption includes a panel of appraisers who are engaged to provide appraisal services and are administered by a financial institution regulated by one of the federal financial regulatory agencies listed in this subsection (9).

C.R.S. § 12-10-608 Errors and omissions insurance - duties of the division - certificate of coverage - group plan made available - rules

12-10-608. Errors and omissions insurance - duties of the division - certificate of coverage - group plan made available - rules. (1) Every licensee under this part 6, except an appraiser who is employed by a state or local governmental entity or an inactive appraiser or appraisal management company, shall maintain errors and omissions insurance to cover all activities contemplated under this part 6. The division shall make the errors and omissions insurance available to all licensees by contracting with an insurer for a group policy after a competitive bid process in accordance with article 103 of title 24. A group policy obtained by the division must be available to all licensees with no right on the part of the insurer to cancel any licensee. A licensee may obtain errors and omissions insurance independently if the coverage complies with the minimum requirements established by the division. (2) (a) If the division is unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the group program at a reasonable annual premium, as determined by the division, a licensee shall independently obtain the errors and omissions insurance required by this section. (b) The division shall solicit and consider information and comments from interested persons when determining the reasonableness of annual premiums. (3) The division shall determine the terms and conditions of coverage required under this section based on rules promulgated by the board. Each licensee shall be notified of the required terms and conditions at least thirty days before the annual premium renewal date as determined by the division. Each licensee shall file a certificate of coverage showing compliance with the required terms and conditions with the division by the annual premium renewal date, as determined by the division. (4) In addition to all other powers and duties conferred upon the board by this part 6, the board is authorized and directed to adopt rules it deems necessary or proper to carry out the requirements of this section.

C.R.S. § 12-10-609 Bond required

12-10-609. Bond required. (1) Before the board issues a license to an applicant for an appraisal management company license, the applicant shall post with the board a surety bond in the amount of twenty-five thousand dollars. A licensed appraisal management company shall maintain the required bond at all times. (2) The surety bond shall require the surety to provide notice to the board within thirty days if payment is made from the surety bond or if the bond is canceled.

C.R.S. § 12-10-610 Expiration of licenses - renewal - penalties - fees - rules

12-10-610. Expiration of licenses - renewal - penalties - fees - rules. (1) (a) All licenses or certificates expire pursuant to a schedule established by the director and may be renewed or reinstated pursuant to this section. Upon compliance with this section and any applicable rules of the board regarding renewal, including the payment of a renewal fee plus a reinstatement fee established pursuant to subsection (1)(b) of this section, the expired license or certificate shall be reinstated. A real estate appraiser's license or certificate that has not been renewed for a period greater than two years shall not be reinstated, and the person must submit a new application for licensure or certification. (b) A person who fails to renew his or her license or certificate before the applicable renewal date may have it reinstated if the person submits an application as prescribed by the board: (I) Within thirty-one days after the date of expiration, by payment of the regular renewal fee; (II) More than thirty-one days, but within one year, after the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to one-third of the regular renewal fee; or (III) More than one year, but within two years, after the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to two-thirds of the regular renewal fee. (2) If the federal registry fee collected by the board and transmitted to the federal financial institutions examination council is increased prior to expiration of a license or certificate, the board shall collect the amount of the increase in the fee from the holder of the license or certificate and forward the amount to the council annually. The federal registry fee does not apply to licensed ad valorem appraisers licensed under this article 10. (3) (a) If the applicant has complied with this section and any applicable rules of the board regarding renewal, except for the continuing education requirements pursuant to section 12-10-606, the licensee may renew the license on inactive status. An inactive license may be activated if the licensee submits written certification of compliance with the required number of continuing education hours as determined by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization. The board may adopt rules establishing procedures to facilitate reactivation of licenses. (b) The holder of an inactive license shall not perform a real estate appraisal or appraisal management duties. (c) The holder of an inactive license shall not hold himself or herself out as having an active license pursuant to this part 6. (4) At the time of renewal or reinstatement, every licensee, certificate holder, and person or individual who owns more than ten percent of an appraisal management company shall submit a set of fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation, if the person has not previously done so for issuance of a license or certification by the board. Each person submitting a set of fingerprints shall pay the fee established by the Colorado bureau of investigation for conducting the fingerprint-based criminal history record check to the bureau. The bureau shall forward the results to the board. The board shall require a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. The board may refuse to renew or reinstate a license or certification based on the outcome of the record check.

C.R.S. § 12-10-611 Licensure or certification by endorsement - temporary practice

12-10-611. Licensure or certification by endorsement - temporary practice. (1) The board may issue a license or certification to an appraiser by endorsement to engage in the occupation of real estate appraisal to any applicant who has a license or certification in good standing as a real estate appraiser under the laws of another jurisdiction if: (a) The applicant presents proof satisfactory to the board that, at the time of application for a Colorado license or certificate by endorsement, the applicant possesses credentials and qualifications that are substantially equivalent to the requirements of this part 6; or (b) The jurisdiction that issued the applicant a license or certificate to engage in the occupation of real estate appraisal has a law similar to this subsection (1) pursuant to which it licenses or certifies persons who are licensed real estate appraisers in this state. (2) The board may specify, by rule, what constitutes substantially equivalent credentials and qualifications and the manner in which the board will review credentials and qualifications of an applicant. (3) Pursuant to section 1122 (a) of Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", Pub.L. 101-73, as amended, the board shall recognize, on a temporary basis, the license or certification of an appraiser issued by another state if: (a) The appraiser's business is of a temporary nature; and (b) The appraiser applies for and is granted a temporary practice permit by the board.

C.R.S. § 12-10-612 Denial of license or certificate - renewal - definition

12-10-612. Denial of license or certificate - renewal - definition. (1) The board may determine whether an applicant for licensure or certification possesses the necessary qualifications for licensure or certification required by this part 6. The board may consider such qualities as the applicant's fitness and prior professional licensure and whether the applicant has been convicted of a crime. As used in this subsection (1), "applicant" includes any individual who owns, in whole or in part, directly or indirectly, an appraisal management company and any appraiser designated as a controlling appraiser by a partnership, limited liability company, or corporation acting as an appraisal management company. (2) If the board determines that an applicant does not possess the applicable qualifications required by this part 6, or the applicant has violated this part 6, rules promulgated by the board, or any board order, the board may deny the applicant a license or certificate or deny the renewal or reinstatement of a license or certificate pursuant to section 12-10-610, and, in such instance, the board shall provide the applicant with a statement in writing setting forth the basis of the board's determination that the applicant does not possess the qualifications or professional competence required by this part 6. The applicant may request a hearing on the determination as provided in section 24-4-104 (9).

C.R.S. § 12-10-613 Prohibited activities - grounds for disciplinary actions - procedures

12-10-613. Prohibited activities - grounds for disciplinary actions - procedures. (1) A real estate appraiser is in violation of this part 6 if the appraiser: (a) Has been convicted of a felony or has had accepted by a court a plea of guilty or nolo contendere to a felony if the felony is related to the ability to act as a real property appraiser. A certified copy of the judgment of a court of competent jurisdiction of the conviction or plea is conclusive evidence of the conviction or plea. In considering the disciplinary action, the board shall be governed by the provisions of section 24-5-101. (b) Has violated, or attempted to violate, directly or indirectly, or assisted in or abetted the violation of, or conspired to violate this part 6, a rule promulgated pursuant to this part 6, or an order of the board issued pursuant to this part 6; (c) Has accepted any fees, compensation, or other valuable consideration to influence the outcome of an appraisal; (d) Has used advertising that is misleading, deceptive, or false; (e) Has used fraud or misrepresentation in obtaining a license or certificate under this part 6; (f) Has conducted an appraisal in a fraudulent manner or used misrepresentation in any such activity; (g) Has acted or failed to act in a manner that does not meet the generally accepted standards of professional appraisal practice as adopted by the board by rule. A certified copy of a malpractice judgment of a court of competent jurisdiction is conclusive evidence of the act or omission, but evidence of the act or omission is not limited to a malpractice judgment. (h) Has performed appraisal services beyond his or her level of competency; (i) Has been subject to an adverse or disciplinary action in another state, territory, or country relating to a license, certificate, or other authorization to practice as an appraiser. A disciplinary action relating to a license or certificate as an appraiser licensed or certified under this part 6 or any related occupation in any other state, territory, or country for disciplinary reasons is prima facie evidence of grounds for disciplinary action or denial of licensure or certification by the board. This subsection (1)(i) applies only to violations based upon acts or omissions in the other state, territory, or country that are also violations of this part 6. (j) Has failed to disclose in the appraisal report the fee paid to the appraiser for a residential real property appraisal if the appraiser was engaged by an appraisal management company to complete the assignment; or (k) Has engaged in conduct that would be grounds for the denial of a license or certification under section 12-10-612. (2) If an applicant, a licensee, or a certified person has violated any provision of this section, the board may deny or refuse to renew the license or certificate, or, as specified in subsections (3) and (6) of this section, revoke or suspend the license or certificate, issue a letter of admonition to a licensee or certified person, place a licensee or certified person on probation, or impose public censure. (3) When a complaint or an investigation discloses an instance of misconduct by a licensed or certified appraiser that, in the opinion of the board, does not warrant formal action by the board but should not be dismissed as being without merit, the board may send a letter of admonition to the appraiser against whom a complaint was made. The letter must advise the appraiser of the right to make a written request, within twenty days after receipt of the letter of admonition, to the board to begin formal disciplinary proceedings as provided in this section to adjudicate the conduct or acts on which the letter was based. being without merit, the board may send a letter of admonition to the appraiser against whom a complaint was made. The letter must advise the appraiser of the right to make a written request, within twenty days after receipt of the letter of admonition, to the board to begin formal disciplinary proceedings as provided in this section to adjudicate the conduct or acts on which the letter was based. (4) The board may start a proceeding for discipline of a licensee or certified person when the board has reasonable grounds to believe that a licensee or certified person has committed any act or failed to act pursuant to the grounds established in subsection (1) of this section or when a request for a hearing is timely made under subsection (3) of this section. (5) Disciplinary proceedings shall be conducted in the manner prescribed by the "State Administrative Procedure Act", article 4 of title 24. (6) As authorized in subsection (2) of this section, disciplinary actions by the board may consist of the following: (a) Revocation of a license or certificate. (I) Revocation of a license or certificate by the board means that the licensed or certified person shall surrender his or her license or certificate immediately to the board. (II) Any person whose license or certificate to practice is revoked is ineligible to apply for a license or certificate issued under this part 6 until more than two years have elapsed from the date of surrender of the license or certificate. A reapplication after the two-year period is treated as a new application. (b) Suspension of a license or certificate. Suspension of a license or certificate by the board is for a period to be determined by the board. (c) Probationary status. The board may impose probationary status on a licensee or certified person. If the board places a licensee or certified person on probation, the board may include conditions for continued practice that the board deems appropriate to assure that the licensee or certified person is otherwise qualified to practice in accordance with generally accepted professional standards of professional appraisal practice, as specified in board rules, including any or all of the following: (I) A requirement that the licensee or certified person take courses of training or education as needed to correct deficiencies found in the hearing; (II) A review or supervision of his or her practice as may be necessary to determine the quality of the practice and to correct deficiencies in the practice; and (III) The imposition of restrictions upon the nature of his or her appraisal practice to assure that he or she does not practice beyond the limits of his or her capabilities. (d) Public censure. If, after notice and hearing, the director or the director's designee determines that the licensee or certified person has committed any of the acts specified in this section, the board may impose public censure. (7) In addition to any other discipline imposed pursuant to this section, a person who violates this part 6 or the rules promulgated pursuant to this article 10 may be penalized by the board, upon a finding of a violation made pursuant to article 4 of title 24, by imposition of a fine of not more than one thousand dollars per violation. (8) A person participating in good faith in making a complaint or report or participating in an investigative or administrative proceeding before the board pursuant to this article 10 is immune from any liability, civil or criminal, that otherwise might result by reason of the action. (9) A licensee or certified person who has direct knowledge that a person has violated this part 6 shall report his or her knowledge to the board. d faith in making a complaint or report or participating in an investigative or administrative proceeding before the board pursuant to this article 10 is immune from any liability, civil or criminal, that otherwise might result by reason of the action. (9) A licensee or certified person who has direct knowledge that a person has violated this part 6 shall report his or her knowledge to the board. (10) The board, on its own motion or upon application at any time after the imposition of discipline as provided in this section, may reconsider its prior action and reinstate or restore a license or certificate, terminate probation, or reduce the severity of its prior disciplinary action. The decision of whether to take any further action or hold a hearing with respect to a prior disciplinary action rests in the sole discretion of the board.

C.R.S. § 12-10-614 Appraisal management companies - prohibited activities - grounds for disciplinary actions - procedures - rules

12-10-614. Appraisal management companies - prohibited activities - grounds for disciplinary actions - procedures - rules. (1) The board, upon its own motion, may, and upon a complaint submitted to the board in writing by any person, shall, investigate the activities of a licensed appraisal management company; an appraiser designated as a controlling appraiser by a partnership, limited liability company, or corporation acting as an appraisal management company; or a person or an entity that assumes to act in that capacity within the state. The board, upon finding a violation, may impose an administrative fine not to exceed two thousand five hundred dollars for each separate offense; censure a licensee; place the licensee on probation and set the terms of probation; or temporarily suspend or permanently revoke a license, when the licensee has performed, is performing, or is attempting to perform any of the following acts: (a) Failing to: (I) Exercise due diligence when hiring or engaging a real estate appraiser to ensure that the real estate appraiser is appropriately credentialed by the board and competent to perform the assignment; and (II) In the case of an AMC, establish and comply with processes and controls reasonably designed to ensure that the AMC conducts its appraisal management services in accordance with the requirements of the federal "Truth in Lending Act", 15 U.S.C. sec. 1639e (a) to (i), and regulations adopted pursuant to that act; (b) Requiring an appraiser to indemnify the appraisal management company against liability, damages, losses, or claims other than those arising out of the services performed by the appraiser, including performance or nonperformance of the appraiser's duties and obligations, whether as a result of negligence or willful misconduct; (c) Influencing or attempting to influence the development, reporting, result, or review of a real estate appraisal or the engagement of an appraiser through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in any other manner. This prohibition does not prohibit an appraisal management company from requesting an appraiser to: (I) Consider additional, appropriate property information; (II) Provide further detail, substantiation, or explanation for the appraiser's value conclusion; or (III) Correct errors in the appraisal report. (d) Prohibiting an appraiser, in the completion of an appraisal service, from communicating with the client, any intended users, real estate brokers, tenants, property owners, management companies, or any other entity that the appraiser reasonably believes has information pertinent to the completion of an appraisal assignment; except that this subsection (1)(d) does not apply to communications between an appraiser and an appraisal management company's client if the client has adopted an explicit policy prohibiting the communication. If the client has adopted an explicit policy prohibiting communication by the appraiser with the client, communication by an appraiser to the client must be made in writing and submitted to the appraisal management company. (e) Altering or modifying a completed appraisal report without the authoring appraiser's knowledge and written consent, and the consent of the intended user, except to modify the format of the report solely for transmission to the client and in a manner acceptable to the client; (f) Requiring an appraiser to provide to the appraisal management company access to the appraiser's electronic signature; ) Altering or modifying a completed appraisal report without the authoring appraiser's knowledge and written consent, and the consent of the intended user, except to modify the format of the report solely for transmission to the client and in a manner acceptable to the client; (f) Requiring an appraiser to provide to the appraisal management company access to the appraiser's electronic signature; (g) Failing to validate or verify that the work completed by an appraiser who is hired or engaged by the appraisal management company complies with state and federal regulations, including the uniform standards of professional appraisal practice, by conducting an annual audit of a random sample of the appraisals received within the previous year by the appraisal management company. The board shall establish annual appraisal review requirements by rule and shall solicit and consider information and comments from interested persons. (h) Failing to make payment to an appraiser within sixty days after completion of the appraisal, unless otherwise agreed or unless the appraiser has been notified in writing that a bona fide dispute exists regarding the performance or quality of the appraisal; (i) Failing to perform the terms of a written agreement with an appraiser hired or engaged to complete an appraisal assignment; (j) Failing to disclose to an appraiser, at the time of engagement, the identity of the client; (k) Using an appraisal report for a client other than the one originally contracted with, without the original client's written consent; (l) Failing to maintain possession of, for future use or inspection by the board, for a period of at least five years or at least two years after final disposition of any judicial proceeding in which a representative of the appraisal management company provided testimony related to the assignment, whichever period expires last, the documents or records prescribed by the rules of the board or to produce the documents or records upon reasonable request by the board; (m) Having been convicted of, or entering a plea of guilty, an Alford plea, or a plea of nolo contendere to, any misdemeanor or felony relating to the conduct of an appraisal, theft, embezzlement, bribery, fraud, misrepresentation, or deceit, or any other like crime under Colorado law, federal law, or the laws of other states. A certified copy of the judgment of a court of competent jurisdiction of the conviction or other official record indicating that a plea was entered is conclusive evidence of the conviction or plea in any hearing under this part 6. (n) Having been the subject of an adverse or disciplinary action in another state, territory, or country relating to a license, registration, certification, or other authorization to practice as an appraisal management company. A disciplinary action relating to a registration, license, or certificate as an appraisal management company under this part 6 or any related occupation in any other state, territory, or country for disciplinary reasons is prima facie evidence of grounds for disciplinary action or denial of a license by the board. This subsection (1)(n) applies only to violations based upon acts or omissions in the other state, territory, or country that would violate this part 6 if committed in Colorado. (o) Violating the "Colorado Consumer Protection Act", article 1 of title 6; (p) Procuring, or attempting to procure, an appraisal management company license or renewing, reinstating, or reactivating, or attempting to renew, reinstate, or reactivate, an appraisal management company license by fraud, misrepresentation, or deceit or by making a material misstatement of fact in an application for a license; (q) Knowingly misrepresenting or making false promises through agents, advertising, or otherwise; (r) Failing to disclose to a client the fee amount paid to the appraiser hired or engaged to complete the appraisal upon completion of the assignment; or al management company license by fraud, misrepresentation, or deceit or by making a material misstatement of fact in an application for a license; (q) Knowingly misrepresenting or making false promises through agents, advertising, or otherwise; (r) Failing to disclose to a client the fee amount paid to the appraiser hired or engaged to complete the appraisal upon completion of the assignment; or (s) Disregarding, violating, or abetting, directly or indirectly, a violation of this part 6, a rule promulgated by the board pursuant to this part 6, or an order of the board entered pursuant to this part 6. (2) When a complaint or an investigation discloses an instance of misconduct that, in the opinion of the board, does not warrant formal action by the board but should not be dismissed as being without merit, the board may send a letter of admonition to the licensee against whom the complaint was made. The letter must advise the licensee of the right to make a written request, within twenty days after receipt of the letter of admonition, to the board to begin formal disciplinary proceedings as provided in this section to adjudicate the conduct or acts on which the letter was based. (3) Disciplinary proceedings must be conducted in the manner prescribed by the "State Administrative Procedure Act", article 4 of title 24. (4) If a partnership, limited liability company, or corporation operating under the license of an appraiser designated and licensed as a controlling appraiser by the partnership, limited liability company, or corporation is guilty of any act listed in subsection (1) of this section, the board may suspend or revoke the right of the partnership, limited liability company, or corporation to conduct its business under the license of the controlling appraiser, whether or not the controlling appraiser had personal knowledge of the violation and whether or not the board suspends or revokes the individual license of the controlling appraiser. (5) This part 6 does not relieve any person from civil liability or criminal prosecution under the laws of this state. (6) A licensee or certified person having direct knowledge that a person or licensed partnership, limited liability company, or corporation has violated this part 6 shall report his or her knowledge to the board. (7) The board, on its own motion or upon application, at any time after the imposition of discipline as provided in this section, may reconsider its prior action and reinstate or restore a license, terminate probation, or reduce the severity of its prior disciplinary action. The decision of whether to take any further action or hold a hearing with respect to the action rests in the sole discretion of the board.

C.R.S. § 12-10-615 Judicial review of final board actions and orders

12-10-615. Judicial review of final board actions and orders. Final actions and orders of the board under sections 12-10-612, 12-10-613, and 12-10-614 appropriate for judicial review are subject to judicial review in the court of appeals in accordance with section 24-4-106 (11).

C.R.S. § 12-10-616 Unlawful acts - penalties

12-10-616. Unlawful acts - penalties. (1) It is unlawful for a person to: (a) Violate section 12-10-613 (1)(c), (1)(e), or (1)(f) or perform a real estate appraisal without first having obtained a license or certificate from the board pursuant to this part 6; (b) Accept a fee for an independent appraisal assignment that is contingent upon: (I) Reporting a predetermined analysis, opinion, or conclusion; or (II) The analysis, opinion, or conclusion reached; or (III) The consequences resulting from the analysis, opinion, or conclusion; (c) Misrepresent a consulting service as an independent appraisal; or (d) Fail to disclose, in connection with a consulting service for which a contingent fee is or will be paid, the fact that a contingent fee is or will be paid. (2) Any person who violates any provision of subsection (1) of this section commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501. Any person who subsequently violates any provision of subsection (1) of this section within five years after the date of a conviction for a violation of subsection (1) of this section commits a class 5 felony and shall be punished as provided in section 18-1.3-401.

C.R.S. § 12-10-617 Appraisal management company license required - violations - injunction

12-10-617. Appraisal management company license required - violations - injunction. (1) Except as provided in section 12-10-607 (9), it is unlawful for any person, partnership, limited liability company, or corporation to engage in the business of appraisal management in this state without first having obtained a license from the board. The board shall not grant a license to a person, partnership, limited liability company, or corporation until the person, partnership, limited liability company, or corporation demonstrates compliance with this part 6. (2) The board may apply to a court of competent jurisdiction for an order enjoining an act or practice that constitutes a violation of this part 6, and, upon a showing that a person, partnership, limited liability company, or corporation is engaging or intends to engage in an act or practice that violates this part 6, the court shall grant an injunction, restraining order, or other appropriate order, regardless of the existence of another remedy for the violation. Any notice, hearing, or duration of an injunction or restraining order shall be made in accordance with the Colorado rules of civil procedure. (3) Any person, partnership, limited liability company, or corporation violating this part 6 by acting as an appraisal management company without having obtained a license or acting as an appraisal management company after the appraisal management company's license has been revoked or during any period for which the license was suspended commits a class 2 misdemeanor.

C.R.S. § 12-10-618 Injunctive proceedings

12-10-618. Injunctive proceedings. (1) The board may, in the name of the people of the state of Colorado, through the attorney general of the state of Colorado, apply for an injunction in any court of competent jurisdiction to perpetually enjoin a person or appraisal management company from committing an act prohibited by this part 6. (2) Injunctive proceedings under this section are in addition to and not in lieu of penalties and other remedies provided in this part 6. (3) When seeking an injunction under this section, the board is not required to allege or prove either that an adequate remedy at law does not exist or that substantial or irreparable damage would result from a continued violation.

C.R.S. § 12-10-619 Special provision for appraiser employees of county assessors

12-10-619. Special provision for appraiser employees of county assessors. (1) Except as provided in subsection (2) of this section, unless a federal waiver is applied for and granted pursuant to section 12-10-604 (1)(i), a person acting as a real estate appraiser in this state shall be licensed or certified as provided in this part 6. No person shall practice without a license or certificate or hold himself or herself out to the public as a licensed or certified real estate appraiser unless licensed or certified pursuant to this part 6. (2) An appraiser employee of a county assessor who is employed to appraise real property shall be licensed or certified as provided in this part 6 and shall have two years from the date of taking office or the beginning of employment to comply with this part 6.

C.R.S. § 12-10-620 Duties of board under federal law

12-10-620. Duties of board under federal law. (1) The board shall: (a) Transmit to the appraisal subcommittee of the federal financial institutions examination council or its successor entity, no less than annually, a roster listing individuals and appraisal management companies that have received a certificate or license as provided in this part 6; (b) Collect and transmit, on an annual basis, to the federal financial institutions examination council an annual registry fee, as prescribed by the appraisal subcommittee of the federal financial institutions examination council or its successor entity, from the following individuals and entities: (I) Individuals and appraisal management companies that are licensed or certified pursuant to this part 6; and (II) Appraisal management companies that operate as subsidiaries of federally regulated financial institutions; and (c) Conduct its business and promulgate rules in a manner consistent with Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, Pub.L. 101-73. (2) The board shall not collect or transmit the information required by this section for licensed ad valorem appraisers.

C.R.S. § 12-10-621 Business entities

12-10-621. Business entities. (1) A corporation, partnership, bank, savings and loan association, savings bank, credit union, or other business entity may provide appraisal services if the appraisal is prepared by a certified general appraiser, a certified residential appraiser, or a licensed appraiser. An individual who is not a certified general appraiser, a certified residential appraiser, or a licensed appraiser may assist in the preparation of an appraisal if: (a) The assistant is under the direct supervision of a certified or licensed appraiser; and (b) The final appraisal document is approved and signed by an individual who is a certified or licensed appraiser.

C.R.S. § 12-10-622 Provisions found not to comply with federal law null and void - severability

12-10-622. Provisions found not to comply with federal law null and void - severability. (1) If any provision of this part 6 is found by a court of competent jurisdiction or by the appropriate federal agency not to comply with the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, Pub.L. 101-73, the provision is null and void, but the remaining provisions of this part 6 are valid unless the remaining provisions alone are incomplete and are incapable of being executed in accordance with the legislative intent of this part 6. (2) If the regulation of appraisal management companies is repealed from Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989", as amended, Pub.L. 101-73, the board's jurisdiction over these entities is also repealed. Before the repeal, the division shall review the regulation of appraisal management companies as provided in section 24-34-104. If the board's jurisdiction is repealed, the director shall notify the revisor of statutes of the date of the repeal.

C.R.S. § 12-10-623 Scope of article - regulated financial institutions - de minimis exemption

12-10-623. Scope of article - regulated financial institutions - de minimis exemption. (1) (a) This article 10 does not apply to an appraisal relating to any real-estate-related transaction or loan made or to be made by a financial institution or its affiliate if the real-estate-related transaction or loan is excepted from appraisal regulations established by the primary federal regulator of the financial institution and the appraisal is performed by: (I) An officer, director, regularly salaried employee, or agent of the financial institution or its affiliate; or (II) A real estate broker licensed under this article 10 with whom the institution or affiliate has contracted for performance of the appraisal. (b) The appraisal must not be represented or deemed to be an appraisal except to the financial institution, the agencies regulating the financial institution, and any secondary markets that purchase real estate secured loans. The appraisal must contain a written notice that the preparer is not licensed or certified as an appraiser under this part 6. Nothing in this subsection (1) exempts a person licensed or certified as an appraiser under this part 6 from regulation as provided in this part 6. (2) Nothing in this article 10 limits the ability of any federal or state regulator of a financial institution to require the financial institution to obtain appraisals as specified by the regulator.

C.R.S. § 12-10-701 Short title

12-10-701. Short title. The short title of this part 7 is the "Mortgage Loan Originator Licensing and Mortgage Company Registration Act".

C.R.S. § 12-10-702 Definitions

12-10-702. Definitions. As used in this part 7, unless the context otherwise requires: (1) "Affiliate" means a person who, directly or indirectly, through intermediaries, controls, is controlled by, or is under the common control of another person addressed by this part 7. (2) "Affordable housing dwelling unit" means an affordable housing dwelling unit as defined in section 29-26-102. (3) "Board" means the board of mortgage loan originators created in section 12-10-703. (4) "Borrower" means any person who consults with or retains a mortgage loan originator in an effort to obtain or seek advice or information on obtaining or applying to obtain a residential mortgage loan for himself, herself, or persons including himself or herself, regardless of whether the person actually obtains such a loan. (5) "Community development organization" means any community housing development organization or community land trust as defined by the federal "Cranston-Gonzalez National Affordable Housing Act" of 1990 or a community-based development organization as defined by the federal "Housing and Community Development Act of 1974", that is also either a private or public nonprofit organization that is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and that receives funding from the United States department of housing and urban development, Colorado division of housing, Colorado housing and finance authority, or United States department of agriculture rural development, or through a grantee of the United States department of housing and urban development, purely for the purpose of community housing development activities. (6) "Depository institution" has the same meaning as set forth in the "Federal Deposit Insurance Act", 12 U.S.C. sec. 1813 (c), and includes a credit union. (7) "Dwelling" shall have the same meaning as set forth in the federal "Truth in Lending Act", 15 U.S.C. sec. 1602 (w). (8) "Federal banking agency" means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration, or the federal deposit insurance corporation. (9) "HUD-approved housing counseling agency" means an agency that is either a private or public nonprofit organization that is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and approved by the United States department of housing and urban development, in accordance with the housing counseling program handbook section 7610.1 and 24 CFR 214. (10) "Individual" means a natural person. (11) (a) "Loan processor or underwriter" means an individual who performs clerical or support duties at the direction of, and subject to supervision by, a state-licensed loan originator or a registered loan originator. es department of housing and urban development, in accordance with the housing counseling program handbook section 7610.1 and 24 CFR 214. (10) "Individual" means a natural person. (11) (a) "Loan processor or underwriter" means an individual who performs clerical or support duties at the direction of, and subject to supervision by, a state-licensed loan originator or a registered loan originator. (b) As used in this subsection (11), "clerical or support duties" includes duties performed after receipt of an application for a residential mortgage loan, including: (I) The receipt, collection, distribution, and analysis of information commonly used for the processing or underwriting of a residential mortgage loan; and (II) Communicating with a borrower to obtain the information necessary to process or underwrite a loan, to the extent that the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms. (12) "Mortgage company" means a person other than an individual who, through employees or other individuals, takes residential loan applications or offers or negotiates terms of a residential mortgage loan. (13) "Mortgage lender" means a lender who is in the business of making residential mortgage loans if: (a) The lender is the payee on the promissory note evidencing the loan; and (b) The loan proceeds are obtained by the lender from its own funds or from a line of credit made available to the lender from a bank or other entity that regularly loans money to lenders for the purpose of funding mortgage loans. (14) (a) "Mortgage loan originator" means an individual who: (I) Takes a residential mortgage loan application; or (II) Offers or negotiates terms of a residential mortgage loan. (b) "Mortgage loan originator" does not include: (I) An individual engaged solely as a loan processor or underwriter; (II) A person that only performs real estate brokerage or sales activities and is licensed or registered pursuant to part 2 of this article 10, unless the person is compensated by a mortgage lender or a mortgage loan originator; (III) A person solely involved in extensions of credit relating to time share plans, as defined in 11 U.S.C. sec. 101 (53D); (IV) An individual who is servicing a mortgage loan; or (V) A person that only performs the services and activities of a dealer, as defined in section 24-32-3302. (15) "Nationwide mortgage licensing system and registry" means a mortgage licensing system developed pursuant to the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008", 12 U.S.C. sec. 5101 et seq., as amended, to track the licensing and registration of mortgage loan originators and that is established and maintained by: (a) The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, or their successor entities; or (b) The secretary of the United States department of housing and urban development. (16) "Nontraditional mortgage product" means a mortgage product other than a thirty-year, fixed-rate mortgage. (17) "Originate a mortgage" means to act, directly or indirectly, as a mortgage loan originator. (18) "Person" means a natural person, corporation, company, limited liability company, partnership, firm, association, or other legal entity. (19) "Quasi-government agency" means an agency that is either a private or public nonprofit organization that is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and was created to operate in accordance with article 4 of title 29 as a public housing authority. (20) "Real estate brokerage activity" means an activity that involves offering or providing real estate brokerage services to the public, including, without limitation: f 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and was created to operate in accordance with article 4 of title 29 as a public housing authority. (20) "Real estate brokerage activity" means an activity that involves offering or providing real estate brokerage services to the public, including, without limitation: (a) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property; (b) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property; (c) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than matters related to financing for the transaction; (d) Engaging in an activity for which a person engaged in the activity is required under applicable law to be registered or licensed as a real estate agent or real estate broker; or (e) Offering to engage in any activity, or act in any capacity related to the activity, described in this subsection (20). (21) "Residential mortgage loan" means a loan that is primarily for personal, family, or household use and that is secured by a mortgage, deed of trust, or other equivalent, consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a single-family dwelling or multiple-family dwelling of four or fewer units. (22) "Residential real estate" means any real property upon which a dwelling is or will be constructed. (23) "Self-help housing organization" means a private or public nonprofit organization that is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and that purely originates residential mortgage loans with interest rates no greater than zero percent for borrowers who have provided part of the labor to construct the dwelling securing the loan or that receives funding from the United States department of agriculture rural development section 502 mutual self-help housing program for borrowers that have provided part of the labor to construct the dwelling securing the loan. (24) "Servicing a mortgage loan" means collecting, receiving, or obtaining the right to collect or receive payments on behalf of a mortgage lender, including payments of principal, interest, escrow amounts, and other amounts due on obligations due and owing to the mortgage lender. (25) "State-licensed loan originator" means an individual who is: (a) A mortgage loan originator or engages in the activities of a mortgage loan originator; (b) Not an employee of a depository institution or a subsidiary that is: (I) Owned and controlled by a depository institution; and (II) Regulated by a federal banking agency; (c) Licensed or required to be licensed pursuant to this part 7; and (d) Registered as a state-licensed loan originator with, and maintains a unique identifier through, the nationwide mortgage licensing system and registry. (26) "Unique identifier" means a number or other identifier assigned to a mortgage loan originator pursuant to protocols established by the nationwide mortgage licensing system and registry.

C.R.S. § 12-10-703 Board of mortgage loan originators - creation - compensation - enforcement of part after board creation - immunity

12-10-703. Board of mortgage loan originators - creation - compensation - enforcement of part after board creation - immunity. (1) (a) There is hereby created in the division of real estate a board of mortgage loan originators, consisting of five members appointed by the governor with the consent of the senate. (b) Of the members of the board: (I) Three must be licensed mortgage loan originators. The general assembly encourages the governor to appoint to at least one of these three positions a licensed mortgage loan originator who is an employee or exclusive agent of, or works as an independent contractor for, a Colorado-based mortgage company. (II) Two must be members of the public at large not engaged in mortgage loan origination or mortgage lending. (c) The term of office for a member is four years; except that the terms shall be staggered so that no more than three members' terms expire in the same year. (d) In the event of a vacancy by death, resignation, removal, or otherwise, the governor shall appoint a member to fill the unexpired term. The governor has the authority to remove any member for misconduct, neglect of duty, or incompetence. (2) (a) The board is a type 1 entity, as defined in section 24-1-105, and exercises its powers and performs its duties and functions under the department. (b) Notwithstanding any other provision of this part 7, on and after the creation of the board by this section, the board shall exercise all of the rule-making, enforcement, and administrative authority of the director set forth in this part 7. The board has the authority to delegate to the director any enforcement and administrative authority under this part 7 that the board deems necessary and appropriate. If the board delegates any enforcement or administrative authority under this part 7 to the director, the director shall only be entitled to exercise such authority as specifically delegated in writing to the director by the board. (3) Each member of the board shall receive the same compensation and reimbursement of expenses as those provided for members of boards and commissions in the division of professions and occupations pursuant to section 12-20-103 (6). Payment for all per diem compensation and expenses shall be made out of annual appropriations from the division of real estate cash fund created in section 12-10-215. (4) Members of the board, consultants, and expert witnesses shall be immune from suit in any civil action based upon any disciplinary proceedings or other official acts they performed in good faith pursuant to this part 7. (5) A majority of the board shall constitute a quorum for the transaction of all business, and actions of the board shall require a vote of a majority of the members present in favor of the action taken. (6) (a) All rules promulgated by the director prior to August 11, 2010, shall remain in full force and effect until repealed or modified by the board. The board shall have the authority to enforce any previously promulgated rules of the director under this part 7 and any rules promulgated by the board. (b) Nothing in this section shall affect any action taken by the director prior to August 11, 2010. No person who, on or before August 11, 2010, holds a license issued under this part 7 shall be required to secure an additional license under this part 7, but shall otherwise be subject to all the provisions of this part 7. A license previously issued shall, for all purposes, be considered a license issued by the board under this part 7.

C.R.S. § 12-10-704 License required - rules

12-10-704. License required - rules. (1) (a) Unless licensed by the board and registered with the nationwide mortgage licensing system and registry as a state-licensed loan originator, an individual shall not originate or offer to originate a mortgage or act or offer to act as a mortgage loan originator. (b) On and after January 1, 2010, a licensed mortgage loan originator shall apply for license renewal in accordance with subsection (5) of this section every calendar year as determined by the board by rule. (2) An independent contractor may not engage in residential mortgage loan origination activities as a loan processor or underwriter unless the independent contractor is a state-licensed loan originator. (3) An applicant for initial licensing as a mortgage loan originator shall submit to the board the following: (a) A criminal history record check in compliance with subsection (6) of this section; (b) A disclosure of all administrative discipline taken against the applicant concerning the categories listed in section 12-10-711 (1)(c); and (c) The application fee established by the board in accordance with section 12-10-718. (4) (a) In addition to the requirements imposed by subsection (3) of this section, on or after August 5, 2009, each individual applicant for initial licensing as a mortgage loan originator must have satisfactorily completed: (I) At least twenty hours of education as administered and approved by the Nationwide Multistate Licensing System and Registry or its successor; and (II) A written examination approved by the board. For the portion of the examination that represents the state-specific test required in the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008", 12 U.S.C. sec. 5101 et seq., as amended, the board may adopt the uniform state test administered through the Nationwide Multistate Licensing System and Registry or its successor. (b) The board may contract with one or more independent testing services to develop, administer, and grade the examinations required by subsection (4)(a) of this section and to maintain and administer licensee records. The contract may allow the testing service to recover from applicants its costs incurred in connection with these functions. The board may contract separately for these functions and may allow the costs to be collected by a single contractor for distribution to other contractors. (c) The board may publish reports summarizing statistical information prepared by the nationwide mortgage licensing system and registry relating to mortgage loan originator examinations. (5) An applicant for license renewal shall submit to the board the following: (a) A disclosure of all administrative discipline taken against the applicant concerning the categories listed in section 12-10-711 (1)(c); and (b) The renewal fee established by the board in accordance with section 12-10-718. (6) (a) Prior to submitting an application for a license, an applicant shall submit a set of fingerprints to the Colorado bureau of investigation. Upon receipt of the applicant's fingerprints, the Colorado bureau of investigation shall use the fingerprints to conduct a state and national criminal history record check using records of the Colorado bureau of investigation and the federal bureau of investigation. All costs arising from the fingerprint-based criminal history record check must be borne by the applicant and must be paid when the set of fingerprints is submitted. Upon completion of the fingerprint-based criminal history record check, the bureau shall forward the results to the board. The board shall acquire a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. gerprints is submitted. Upon completion of the fingerprint-based criminal history record check, the bureau shall forward the results to the board. The board shall acquire a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. (b) If the board determines that the criminal background check provided by the nationwide mortgage licensing system and registry is a sufficient method of screening license applicants to protect Colorado consumers, the board may, by rule, authorize the use of that criminal background check instead of the criminal history record check otherwise required by this subsection (6). (7) (a) On and after January 1, 2010, in connection with an application for a license as a mortgage loan originator, the applicant shall furnish information concerning the applicant's identity to the nationwide mortgage licensing system and registry. The applicant shall furnish, at a minimum, the following: (I) Fingerprints for submission to the federal bureau of investigation and any government agency or entity authorized to receive fingerprints for a state, national, or international criminal history record check; and (II) Personal history and experience, in a form prescribed by the nationwide mortgage licensing system and registry, including submission of authorization for the nationwide mortgage licensing system and registry to obtain: (A) An independent credit report from the consumer reporting agency described in the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681a (p); and (B) Information related to any administrative, civil, or criminal findings by a government jurisdiction. (b) An applicant is responsible for paying all costs arising from a criminal history record check and shall pay the costs upon submission of fingerprints. (c) The board shall acquire a name-based judicial record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check. (8) Before granting a license to an applicant, the board shall require the applicant to post a bond as required by section 12-10-717. (9) The board shall issue or deny a license within sixty days after: (a) The applicant has submitted the requisite information to the board and the Nationwide Multistate Licensing System and Registry, including the completed application and any necessary supplementary information, the application fee, and proof that the applicant has posted a surety bond and obtained errors and omissions insurance; and (b) The board receives the completed criminal history record check and all other relevant information or documents necessary to reasonably ascertain facts underlying the applicant's criminal history. (10) (a) The board may require, as a condition of license renewal on or after January 1, 2009, continuing education of licensees for the purpose of enhancing the professional competence and professional responsibility of all licensees. criminal history record check and all other relevant information or documents necessary to reasonably ascertain facts underlying the applicant's criminal history. (10) (a) The board may require, as a condition of license renewal on or after January 1, 2009, continuing education of licensees for the purpose of enhancing the professional competence and professional responsibility of all licensees. (b) Continuing professional education requirements shall be determined by the board by rule; except that licensees shall be required to complete at least eight credit hours of continuing education each year. The board may contract with one or more independent service providers to develop, review, or approve continuing education courses. The contract may allow the independent service provider to recover from licensees its costs incurred in connection with these functions. The board may contract separately for these functions and may allow the costs to be collected by a single contractor for distribution to other contractors. (11) (a) The board may require contractors and prospective contractors for services under subsections (4) and (10) of this section to submit, for the board's review and approval, information regarding the contents and materials of proposed courses and other documentation reasonably necessary to further the purposes of this section. (b) The board may set fees for the initial and continuing review of courses for which credit hours will be granted. The initial filing fee for review of materials shall not exceed five hundred dollars, and the fee for continued review shall not exceed two hundred fifty dollars per year per course offered. (12) The board may adopt reasonable rules to implement this section. The board may adopt rules necessary to implement provisions required in the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008", 12 U.S.C. sec. 5101 et seq., as amended, and for participation in the nationwide mortgage licensing system and registry. (13) In order to fulfill the purposes of this part 7, the board may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this part 7. (14) The board may use the nationwide mortgage licensing system and registry as a channeling agent for requesting information from or distributing information to the department of justice, a government agency, or any other source.

C.R.S. § 12-10-705 Registration required - rules

12-10-705. Registration required - rules. (1) On or after January 1, 2011, each mortgage company shall register with the nationwide mortgage licensing system and registry, unless exempted by rule by the board, and shall renew its registration each calendar year based on the following criteria: (a) (I) The mortgage company is legally operating in the state of Colorado in accordance with standards determined and administered by the Colorado secretary of state; and (II) The mortgage company is not legally barred from operating in Colorado. (b) Sole proprietors, general partnerships, and other mortgage companies not otherwise required to register with the secretary of state shall register using a trade name.

C.R.S. § 12-10-706 License or registration inactivation

12-10-706. License or registration inactivation. (1) The board may inactivate a state license or a registration with the nationwide mortgage licensing system and registry when a licensee has failed to: (a) Comply with the surety bond requirements of sections 12-10-704 (8) and 12-10-717; (b) Comply with the errors and omissions insurance requirement in section 12-10-707 or any rule of the board that directly or indirectly addresses errors and omissions insurance requirements; (c) Maintain current contact information, surety bond information, or errors and omissions insurance information as required by this part 7 or by any rule of the board that directly or indirectly addresses those requirements; (d) Respond to an investigation or examination; (e) Comply with any of the education or testing requirements set forth in this part 7 or in any rule of the board that directly or indirectly addresses education or testing requirements; or (f) Register with and provide all required information to the nationwide mortgage licensing system and registry.

C.R.S. § 12-10-707 Errors and omissions insurance - duties of the board - certificate of coverage - when required - group plan made available - effect - rules

12-10-707. Errors and omissions insurance - duties of the board - certificate of coverage - when required - group plan made available - effect - rules. (1) Every licensee under this part 7, except an inactive mortgage loan originator or an attorney licensee who maintains a policy of professional malpractice insurance that provides coverage for errors and omissions insurance for their activities as a licensee under this part 7, shall maintain errors and omissions insurance to cover all activities contemplated under this part 7. The division shall make the errors and omissions insurance available to all licensees by contracting with an insurer for a group policy after a competitive bid process in accordance with article 103 of title 24. A group policy obtained by the division must be available to all licensees with no right on the part of the insurer to cancel a licensee. A licensee may obtain errors and omissions insurance independently if the coverage complies with the minimum requirements established by the division. (2) (a) If the division is unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the group program at a reasonable annual premium, as determined by the division, a licensee shall independently obtain the errors and omissions insurance required by this section. (b) The division shall solicit and consider information and comments from interested persons when determining the reasonableness of annual premiums. (3) The division shall determine the terms and conditions of coverage required under this section based on rules promulgated by the board. Each licensee shall be notified of the required terms and conditions at least thirty days before the annual premium renewal date as determined by the division. Each licensee shall file a certificate of coverage showing compliance with the required terms and conditions with the division by the annual premium renewal date, as determined by the division. (4) In addition to all other powers and duties conferred upon the board by this part 7, the board shall adopt such rules as it deems necessary or proper to carry out this section.

C.R.S. § 12-10-708 License renewal

12-10-708. License renewal. (1) In order for a licensed mortgage loan originator to renew a license issued pursuant to this part 7, the mortgage loan originator shall: (a) Continue to meet the minimum standards for issuance of a license pursuant to this part 7; (b) Satisfy the annual continuing education requirements set forth in section 12-10-704 (10) and in rules adopted by the board; and (c) Pay applicable license renewal fees. (2) If a licensed mortgage loan originator fails to satisfy the requirements of subsection (1) of this section for license renewal, the mortgage loan originator's license shall expire. The board shall adopt rules to establish procedures for the reinstatement of an expired license consistent with the standards established by the nationwide mortgage licensing system and registry.

C.R.S. § 12-10-709 Exemptions - definition - rules

12-10-709. Exemptions - definition - rules. (1) Except as otherwise provided in section 12-10-713, this part 7 does not apply to the following, unless otherwise determined by the federal bureau of consumer financial protection or the United States department of housing and urban development: (a) With respect to a residential mortgage loan: (I) A person, estate, or trust that provides mortgage financing for the sale of no more than three properties in any twelve-month period to purchasers of the properties, each of which is owned by the person, estate, or trust and serves as security for the loan; or (II) An individual who acts as a mortgage loan originator, without compensation or gain to the mortgage loan originator, in providing loan financing for not more than three residential mortgage loans in any twelve-month period to a family member of the individual. The board shall define "family member" by rule. For purposes of this exemption only, "compensation or gain" excludes any interest paid under the loan financing provided. (b) A bank and a savings association as these terms are defined in the "Federal Deposit Insurance Act", 12 U.S.C. sec. 1811 et seq., as amended, a subsidiary that is owned and controlled by a bank or savings association, employees of a bank or savings association, employees of a subsidiary that is owned and controlled by a bank or savings association, credit unions, and employees of credit unions; (c) An attorney who renders services in the course of practice, who is licensed in Colorado, and who is not primarily engaged in the business of negotiating residential mortgage loans; (d) A person who: (I) Funds a residential mortgage loan that has been originated and processed by a licensed person or by an exempt person; (II) Does not solicit borrowers in Colorado for the purpose of making residential mortgage loans; and (III) Does not participate in the negotiation of residential mortgage loans with the borrower, except for setting the terms under which a person may buy or fund a residential mortgage loan originated by a licensed or exempt person; (e) A loan processor or underwriter who is not an independent contractor and who does not represent to the public that the individual can or will perform any activities of a mortgage loan originator. As used in this subsection (1)(e), "represent to the public" means communicating, through advertising or other means of communicating, or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual is able to provide a particular service or activity for a consumer. (f) To the extent that it is providing programs benefitting affordable housing dwelling units, an agency of the federal government, the Colorado government, or any of Colorado's political subdivisions or employees of an agency of the federal government, of the Colorado government, or of any of Colorado's political subdivisions; (g) Quasi-government agencies, HUD-approved housing counseling agencies, or employees of quasi-government agencies or HUD-approved housing counseling agencies; (h) Community development organizations or employees of community development organizations; (i) Self-help housing organizations or employees of self-help housing organizations or volunteers acting as an agent of self-help housing organizations; (j) A person licensed under part 2 of this article 10 who represents a person, estate, or trust providing mortgage financing under subsection (1)(a) of this section. (2) The exemptions in subsection (1) of this section shall not apply to persons acting beyond the scope of the exemptions. (3) The board may adopt reasonable rules modifying the exemptions in this section in accordance with rules adopted by the federal bureau of consumer financial protection or the United States department of housing and urban development.

C.R.S. § 12-10-710 Originator's relationship to borrower - rules

12-10-710. Originator's relationship to borrower - rules. (1) A mortgage loan originator shall have a duty of good faith and fair dealing in all communications and transactions with a borrower. The duty includes, but is not limited to: (a) The duty to not recommend or induce the borrower to enter into a transaction that does not have a reasonable, tangible net benefit to the borrower, considering all of the circumstances, including the terms of a loan, the cost of a loan, and the borrower's circumstances; (b) The duty to make a reasonable inquiry concerning the borrower's current and prospective income, existing debts and other obligations, and any other relevant information and, after making the inquiry, to make his or her best efforts to recommend, broker, or originate a residential mortgage loan that takes into consideration the information submitted by the borrower, but the mortgage loan originator shall not be deemed to violate this section if the borrower conceals or misrepresents relevant information; and (c) The duty not to commit any acts, practices, or omissions in violation of section 38-40-105. (2) For purposes of implementing subsection (1) of this section, the board may adopt rules defining what constitutes a reasonable, tangible net benefit to the borrower. (3) A violation of this section constitutes a deceptive trade practice under the "Colorado Consumer Protection Act", article 1 of title 6.

C.R.S. § 12-10-711 Powers and duties of the board - rules

12-10-711. Powers and duties of the board - rules. (1) The board may deny an application for a license, refuse to renew, or revoke the license of an applicant or licensee who has: (a) Filed an application with the board containing material misstatements of fact or omitted any disclosure required by this part 7; (b) Within the last five years, been convicted of or pled guilty or nolo contendere to a crime involving fraud, deceit, material misrepresentation, theft, or the breach of a fiduciary duty, except as otherwise set forth in this part 7; (c) Except as otherwise set forth in this part 7, within the last five years, had a license, registration, or certification issued by Colorado or another state revoked or suspended for fraud, deceit, material misrepresentation, theft, or the breach of a fiduciary duty, and the discipline denied the person authorization to practice as: (I) A mortgage broker or a mortgage loan originator; (II) A real estate broker, as defined by section 12-10-201 (6); (III) A real estate salesperson; (IV) A real estate appraiser, as defined by section 12-10-602 (9); (V) An insurance producer, as defined by section 10-2-103 (6); (VI) An attorney; (VII) A securities broker-dealer, as defined by section 11-51-201 (2); (VIII) A securities sales representative, as defined by section 11-51-201 (14); (IX) An investment advisor, as defined by section 11-51-201 (9.5); or (X) An investment advisor representative, as defined by section 11-51-201 (9.6); (d) Been enjoined within the immediately preceding five years under the laws of this or any other state or of the United States from engaging in deceptive conduct relating to the brokering of or originating a mortgage loan; (e) Been found to have violated the provisions of section 12-10-721; (f) Been found to have violated the provisions of section 12-10-713; (g) Not demonstrated financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the individual will operate honestly, fairly, and efficiently, consistent with the purposes of this part 7; (h) Not completed the prelicense education requirements set forth in section 12-10-704 and any applicable rules of the board; or (i) Not passed a written examination that meets the requirements set forth in section 12-10-704 and any applicable rules of the board. (2) The board shall deny an application for a license, refuse to renew, or revoke the license of an applicant or licensee who has: (a) (I) Had a mortgage loan originator license or similar license revoked in any jurisdiction. (II) If a revocation is subsequently formally nullified, the license is not revoked for purposes of this subsection (2)(a). (b) (I) At any time been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering. (II) If the individual obtains a pardon of the conviction, the board shall not deem the individual convicted for purposes of this subsection (2)(b). (c) Been convicted of, or pled guilty or nolo contendere to, a felony within the immediately preceding seven years. (3) The board may investigate the activities of a licensee or other person that present grounds for disciplinary action under this part 7 or that violate section 12-10-720 (1). (4) (a) If the board has reasonable grounds to believe that a mortgage loan originator is no longer qualified under subsection (1) of this section, the board may summarily suspend the mortgage loan originator's license pending a hearing to revoke the license. A summary suspension shall conform to article 4 of title 24. r disciplinary action under this part 7 or that violate section 12-10-720 (1). (4) (a) If the board has reasonable grounds to believe that a mortgage loan originator is no longer qualified under subsection (1) of this section, the board may summarily suspend the mortgage loan originator's license pending a hearing to revoke the license. A summary suspension shall conform to article 4 of title 24. (b) The board shall suspend the license of a mortgage loan originator who fails to maintain the bond required by section 12-10-717 until the licensee complies with that section. (5) The board or an administrative law judge appointed pursuant to part 10 of article 30 of title 24 shall conduct disciplinary hearings concerning mortgage loan originators and mortgage companies. The hearings shall conform to article 4 of title 24. (6) (a) Except as provided in subsection (6)(b) of this section, an individual whose license has been revoked shall not be eligible for licensure for two years after the effective date of the revocation. (b) If the board or an administrative law judge determines that an application contained a misstatement of fact or omitted a required disclosure due to an unintentional error, the board shall allow the applicant to correct the application. Upon receipt of the corrected and completed application, the board or administrative law judge shall not bar the applicant from being licensed on the basis of the unintentional misstatement or omission. (7) (a) The board or an administrative law judge may administer oaths, take affirmations of witnesses, and issue subpoenas to compel the attendance of witnesses and the production of all relevant papers, books, records, documentary evidence, and materials in any hearing or investigation conducted by the board or an administrative law judge. The board may request any information relevant to the investigation, including, but not limited to, independent credit reports obtained from a consumer reporting agency described in the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681a (p). (b) Upon failure of a witness to comply with a subpoena or process, the district court of the county in which the subpoenaed witness resides or conducts business may issue an order requiring the witness to appear before the board or administrative law judge; produce the relevant papers, books, records, documentary evidence, testimony, or materials in question; or both. Failure to obey the order of the court may be punished as a contempt of court. The board or an administrative law judge may apply for an order. (c) The licensee or individual who, after an investigation under this part 7, is found to be in violation of a provision of this part 7 shall be responsible for paying all reasonable and necessary costs of the division arising from subpoenas or requests issued pursuant to this subsection (7), including court costs for an action brought pursuant to subsection (7)(b) of this section. (8) (a) If the board has reasonable cause to believe that an individual is violating this part 7, including but not limited to section 12-10-720 (1), the board may enter an order requiring the individual to cease and desist the violations. (b) The board, upon its own motion, may, and, upon the complaint in writing of any person, shall, investigate the activities of any licensee or any individual who assumes to act in such capacity within the state. In addition to any other penalty that may be imposed pursuant to this part 7, any individual violating any provision of this part 7 or any rules promulgated pursuant to this article 10 may be fined upon a finding of misconduct by the board as follows: (I) In the first administrative proceeding, a fine not in excess of one thousand dollars per act or occurrence; (II) In a second or subsequent administrative proceeding, a fine not less than one thousand dollars nor in excess of two thousand dollars per act or occurrence. art 7 or any rules promulgated pursuant to this article 10 may be fined upon a finding of misconduct by the board as follows: (I) In the first administrative proceeding, a fine not in excess of one thousand dollars per act or occurrence; (II) In a second or subsequent administrative proceeding, a fine not less than one thousand dollars nor in excess of two thousand dollars per act or occurrence. (c) All fines collected pursuant to this subsection (8) shall be transferred to the state treasurer, who shall credit them to the division of real estate cash fund created in section 12-10-215. (9) The board shall keep records of the individuals licensed as mortgage loan originators and of disciplinary proceedings. The records kept by the board shall be open to public inspection in a reasonable time and manner determined by the board. (10) The board shall maintain a system, which may include, without limitation, a hotline or website, that gives consumers a reasonably easy method for making complaints about a mortgage loan originator. (11) The board shall promulgate rules to allow licensed mortgage loan originators to hire unlicensed mortgage loan originators under temporary licenses. If an unlicensed mortgage loan originator has initiated the application process for a license, he or she shall be assigned a temporary license for a reasonable period until a license is approved or denied. The licensed mortgage loan originator who employs an unlicensed mortgage loan originator shall be held responsible under all applicable provisions of law, including without limitation this part 7 and section 38-40-105, for the actions of the unlicensed mortgage loan originator to whom a temporary license has been assigned under this subsection (11).

C.R.S. § 12-10-712 Powers and duties of the board over mortgage companies - fines - rules

12-10-712. Powers and duties of the board over mortgage companies - fines - rules. (1) With respect to mortgage companies, the board may deny an application for registration; refuse to renew, suspend, or revoke the registration; enter cease-and-desist orders; and impose fines as set forth in this section as follows: (a) If the board has reasonable cause to believe a person is acting without a license or registration; (b) If the mortgage company fails to maintain possession, for future use or inspection by an authorized representative of the board, for a period of four years, of the documents or records prescribed by the rules of the board or to produce the documents or records upon reasonable request by the board or by an authorized representative of the board; (c) If the mortgage company employs or contracts with individuals who are required to be licensed pursuant to this part 7 and who are not either: (I) Licensed; or (II) In the process of becoming licensed; or (d) If the mortgage company directs, makes, or causes to be made, in any manner, a false or deceptive statement or representation with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan; engages in bait and switch advertising as that term is used in section 6-1-105 (1)(n); or violates any rule of the board that directly or indirectly addresses advertising requirements. (2) (a) The board, upon its own motion or upon the complaint in writing of any person, may investigate the activities of any registered mortgage company or any mortgage company that is acting in a capacity that requires registration pursuant to this part 7. (b) The board may fine a mortgage company that has violated this section or any rules promulgated pursuant to this section as follows: (I) In the first administrative proceeding, a fine not in excess of one thousand dollars per act or occurrence; (II) In a second or subsequent administrative proceeding, a fine not in excess of two thousand dollars per act or occurrence. (c) All fines collected pursuant to this section shall be transmitted to the state treasurer, who shall credit them to the division of real estate cash fund created in section 12-10-215. (3) The board may adopt reasonable rules for implementing this section. (4) Nothing in this section automatically imputes a violation to the mortgage company if a licensed agent or employee, or an individual agent or employee who is required to be licensed, violates any other provision of this part 7.

C.R.S. § 12-10-713 Disciplinary actions - grounds - procedures - rules

12-10-713. Disciplinary actions - grounds - procedures - rules. (1) The board, upon its own motion, may, or upon the complaint in writing of any person, shall, investigate the activities of any mortgage loan originator. The board has the power to impose an administrative fine in accordance with section 12-10-711, deny a license, censure a licensee, place the licensee on probation and set the terms of probation, order restitution, order the payment of actual damages, or suspend or revoke a license when the board finds that the licensee or applicant has performed, is performing, or is attempting to perform any of the following acts: (a) Knowingly making any misrepresentation or knowingly making use of any false or misleading advertising; (b) Making any promise that influences, persuades, or induces another person to detrimentally rely on the promise when the licensee could not or did not intend to keep the promise; (c) Knowingly misrepresenting or making false promises through agents, salespersons, advertising, or otherwise; (d) Violating any provision of the "Colorado Consumer Protection Act", article 1 of title 6, and, if the licensee has been assessed a civil or criminal penalty or been subject to an injunction under the act, the board shall revoke the licensee's license; (e) Acting for more than one party in a transaction without disclosing any actual or potential conflict of interest or without disclosing to all parties any fiduciary obligation or other legal obligation of the mortgage loan originator to any party; (f) Representing or attempting to represent a mortgage loan originator other than the licensee's principal or employer without the express knowledge and consent of that principal or employer; (g) In the case of a licensee in the employ of another mortgage loan originator, failing to place, as soon after receipt as is practicably possible, in the custody of that licensed mortgage loan originator-employer any deposit money or other money or fund entrusted to the employee by any person dealing with the employee as the representative of that licensed mortgage loan originator-employer; (h) Failing to account for or to remit, within a reasonable time, any money coming into his or her possession that belongs to others, whether acting as a mortgage loan originator, real estate broker, salesperson, or otherwise, and failing to keep records relative to the money, which records shall contain such information as may be prescribed by the rules of the board relative thereto and shall be subject to audit by the board; (i) Converting funds of others, diverting funds of others without proper authorization, commingling funds of others with the licensee's own funds, or failing to keep the funds of others in an escrow or a trustee account with a bank or recognized depository in this state, which account may be any type of checking, demand, passbook, or statement account insured by an agency of the United States government, and to keep records relative to the deposit that contain such information as may be prescribed by the rules of the board relative thereto, which records shall be subject to audit by the board; (j) Failing to provide the parties to a residential mortgage loan transaction with such information as may be prescribed by the rules of the board; (k) Unless an employee of a duly registered mortgage company, failing to maintain possession, for future use or inspection by an authorized representative of the board, for a period of four years, of the documents or records prescribed by the rules of the board or to produce the documents or records upon reasonable request by the board or by an authorized representative of the board; f the board; (k) Unless an employee of a duly registered mortgage company, failing to maintain possession, for future use or inspection by an authorized representative of the board, for a period of four years, of the documents or records prescribed by the rules of the board or to produce the documents or records upon reasonable request by the board or by an authorized representative of the board; (l) Paying a commission or valuable consideration for performing any of the functions of a mortgage loan originator, as described in this part 7, to any person who is not licensed under this part 7 or is not registered in compliance with the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008", 12 U.S.C. sec. 5101 et seq., as amended; (m) Disregarding or violating any provision of this part 7 or any rule adopted by the board pursuant to this part 7; violating any lawful orders of the board; or aiding and abetting a violation of any rule, order of the board, or provision of this part 7; (n) Conviction of, entering a plea of guilty to, or entering a plea of nolo contendere to any crime in article 3 of title 18, parts 1 to 4 of article 4 of title 18, article 5 of title 18, part 3 of article 8 of title 18, article 15 of title 18, article 17 of title 18, or any other like crime under Colorado law, federal law, or the laws of other states. A certified copy of the judgment of a court of competent jurisdiction of a conviction or other official record indicating that a plea was entered shall be conclusive evidence of the conviction or plea in any hearing under this part 7. (o) Violating or aiding and abetting in the violation of the Colorado or federal fair housing laws; (p) Failing to immediately notify the board in writing of a conviction, plea, or violation pursuant to subsection (1)(n) or (1)(o) of this section; (q) Having demonstrated unworthiness or incompetency to act as a mortgage loan originator by conducting business in such a manner as to endanger the interest of the public; (r) Procuring, or attempting to procure, a mortgage loan originator's license or renewing, reinstating, or reactivating, or attempting to renew, reinstate, or reactivate, a mortgage loan originator's license by fraud, misrepresentation, or deceit or by making a material misstatement of fact in an application for the license; (s) Claiming, arranging for, or taking any secret or undisclosed amount of compensation, commission, or profit or failing to reveal to the licensee's principal or employer the full amount of the licensee's compensation, commission, or profit in connection with any acts for which a license is required under this part 7; (t) Exercising an option to purchase in any agreement authorizing or employing a licensee to sell, buy, or exchange real estate for compensation or commission except when the licensee, prior to or coincident with election to exercise the option to purchase, reveals in writing to the licensee's principal or employer the full amount of the licensee's profit and obtains the written consent of the principal or employer approving the amount of the profit; (u) Fraud, misrepresentation, deceit, or conversion of trust funds that results in the payment of any claim pursuant to this part 7 or that results in the entry of a civil judgment for damages; (v) Any other conduct, whether of the same or a different character than specified in this subsection (1), that evinces a lack of good faith and fair dealing; (w) Having had a mortgage loan originator's license suspended or revoked in any jurisdiction or having had any disciplinary action taken against the mortgage loan originator in any other jurisdiction. A certified copy of the order of disciplinary action shall be prima facie evidence of the disciplinary action. (x) Engaging in any unfair or deceptive practice toward any person; (y) Obtaining property by fraud or misrepresentation; inator's license suspended or revoked in any jurisdiction or having had any disciplinary action taken against the mortgage loan originator in any other jurisdiction. A certified copy of the order of disciplinary action shall be prima facie evidence of the disciplinary action. (x) Engaging in any unfair or deceptive practice toward any person; (y) Obtaining property by fraud or misrepresentation; (z) Soliciting or entering into a contract with a borrower that provides, in substance, that the mortgage loan originator may earn a fee or commission through the mortgage loan originator's best efforts to obtain a loan even though no loan is actually obtained for the borrower; (aa) Soliciting, advertising, or entering into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of the solicitation, advertisement, or contract; (bb) Failing to make a disclosure to a loan applicant or a noninstitutional investor as required by section 12-10-725 and any other applicable state or federal law; (cc) Making, in any manner, any false or deceptive statement or representation with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan or engaging in bait and switch advertising; (dd) Negligently making any false statement or knowingly and willfully omitting a material fact in connection with any reports filed by a mortgage loan originator or in connection with any investigation conducted by the division; (ee) In any advertising of residential mortgage loans or any other applicable mortgage loan originator activities covered by the following federal acts, failing to comply with any requirement of the "Truth in Lending Act", 15 U.S.C. sec. 1601 and Regulation Z, 12 CFR 226 and 12 CFR 1026; the "Real Estate Settlement Procedures Act of 1974", 12 U.S.C. sec. 2601 and Regulation X, 12 CFR 1024 et seq.; the "Equal Credit Opportunity Act", 15 U.S.C. sec. 1691 and Regulation B, 12 CFR 202.9, 202.11, and 202.12 and 12 CFR 1002; Title V, Subtitle A of the "Financial Services Modernization Act of 1999", also known as the "Gramm-Leach-Bliley Act", 15 U.S.C. secs. 6801 to 6809, and the federal trade commission's privacy rules, 16 CFR 313 and 314, mandated by the "Gramm-Leach-Bliley Act"; the "Home Mortgage Disclosure Act of 1975", 12 U.S.C. sec. 2801 et seq. and Regulation C, home mortgage disclosure, 12 CFR 203 and 12 CFR 1003; the "Federal Trade Commission Act" of 1914, 15 U.S.C. sec. 45 (a) and 16 CFR 233; and the "Telemarketing and Consumer Fraud and Abuse Prevention Act", 15 U.S.C. secs. 6101 to 6108, and the federal trade commission's telemarketing sales rule, 16 CFR 310, as amended. The board may adopt rules requiring mortgage loan originators to comply with other applicable state and federal statutes and regulations. (ff) Failing to pay a third-party provider, no later than thirty days after the recording of the loan closing documents or ninety days after completion of the third-party service, whichever comes first, unless otherwise agreed or unless the third-party service provider has been notified in writing that a bona fide dispute exists regarding the performance or quality of the third-party service; or (gg) Collecting, charging, attempting to collect or charge, or using or proposing any agreement purporting to collect or charge any fee prohibited by section 12-10-725 or 12-10-726. hichever comes first, unless otherwise agreed or unless the third-party service provider has been notified in writing that a bona fide dispute exists regarding the performance or quality of the third-party service; or (gg) Collecting, charging, attempting to collect or charge, or using or proposing any agreement purporting to collect or charge any fee prohibited by section 12-10-725 or 12-10-726. (2) Upon request of the board, when any mortgage loan originator is a party to any suit or proceeding, either civil or criminal, arising out of any transaction involving a residential mortgage loan and the mortgage loan originator participated in the transaction in his or her capacity as a licensed mortgage loan originator, the mortgage loan originator shall supply to the board a copy of the complaint, indictment, information, or other initiating pleading and the answer filed, if any, and advise the board of the disposition of the case and of the nature and amount of any judgment, verdict, finding, or sentence that may be made, entered, or imposed therein. (3) This part 7 shall not be construed to relieve any person from civil liability or criminal prosecution under the laws of this state. (4) Complaints of record in the office of the board and board investigations, including board investigative files, are closed to public inspection. Stipulations and final agency orders are public record and subject to sections 24-72-203 and 24-72-204. (5) When a complaint or an investigation discloses an instance of misconduct that, in the opinion of the board, does not warrant formal action by the board but that should not be dismissed as being without merit, the board may send a letter of admonition by certified mail, return receipt requested, to the licensee against whom a complaint was made and a copy of the letter of admonition to the person making the complaint, but the letter shall advise the licensee that the licensee has the right to request in writing, within twenty days after proven receipt, that formal disciplinary proceedings be initiated to adjudicate the propriety of the conduct upon which the letter of admonition is based. If the request is timely made, the letter of admonition shall be deemed vacated, and the matter shall be processed by means of formal disciplinary proceedings. (6) All administrative fines collected pursuant to this section shall be transmitted to the state treasurer, who shall credit them to the division of real estate cash fund created in section 12-10-215. (7) (a) The board shall not consider an application for licensure from an individual whose license has been revoked until two years after the date of revocation. (b) If an individual's license was suspended or revoked due to conduct that resulted in financial loss to another person, no new license shall be granted, nor shall a suspended license be reinstated, until full restitution has been made to the person suffering the financial loss. The amount of restitution shall include interest, reasonable attorney fees, and costs of any suit or other proceeding undertaken in an effort to recover the loss. (8) When the board or the division becomes aware of facts or circumstances that fall within the jurisdiction of a criminal justice or other law enforcement authority upon investigation of the activities of a licensee, the board or division shall, in addition to the exercise of its authority under this part 7, refer and transmit the information, which may include originals or copies of documents and materials, to one or more criminal justice or other law enforcement authorities for investigation and prosecution as authorized by law.

C.R.S. § 12-10-714 Hearing - administrative law judge - review - rules

12-10-714. Hearing - administrative law judge - review - rules. (1) Except as otherwise provided in this section, all proceedings before the board with respect to disciplinary actions and denial of licensure under this part 7, at the discretion of the board, may be conducted by an authorized representative of the board or an administrative law judge pursuant to sections 24-4-104 and 24-4-105. (2) Proceedings shall be held in the county where the board has its office or in such other place as the board may designate. If the licensee is employed by another licensed mortgage loan originator or by a real estate broker, the board shall also notify the licensee's employer by mailing, by first-class mail, a copy of the written notice required under section 24-4-104 (3) to the employer's last-known business address. (3) The board, an authorized representative of the board, or an administrative law judge shall conduct all hearings for denying, suspending, or revoking a license or certificate on behalf of the board, subject to appropriations made to the department of personnel. Each administrative law judge shall be appointed pursuant to part 10 of article 30 of title 24. The administrative law judge shall conduct the hearing in accordance with sections 24-4-104 and 24-4-105. No license shall be denied, suspended, or revoked until the board has made its decision. (4) The decision of the board in any disciplinary action or denial of licensure under this section is subject to judicial review by the court of appeals. In order to effectuate the purposes of this part 7, the board has the power to promulgate rules pursuant to article 4 of title 24. (5) In a judicial review proceeding, the court may stay the execution or effect of any final order of the board; but a hearing shall be held affording the parties an opportunity to be heard for the purpose of determining whether the public health, safety, and welfare would be endangered by staying the board's order. If the court determines that the order should be stayed, it shall also determine at the hearing the amount of the bond and adequacy of the surety, which bond shall be conditioned upon the faithful performance by the petitioner of all obligations as a mortgage loan originator and upon the prompt payment of all damages arising from or caused by the delay in the taking effect of or enforcement of the order complained of and for all costs that may be assessed or required to be paid in connection with the proceedings. (6) In any hearing conducted by the board or an authorized representative of the board in which there is a possibility of the denial, suspension, or revocation of a license because of the conviction of a felony or of a crime involving moral turpitude, the board or its authorized representative shall be governed by section 24-5-101.

C.R.S. § 12-10-715 Subpoena - petty offense

12-10-715. Subpoena - petty offense. (1) The board or the administrative law judge appointed for hearings may issue subpoenas, as described in section 12-10-711 (7), which shall be served in the same manner as subpoenas issued by district courts and shall be issued without discrimination between public or private parties requiring the attendance of witnesses or the production of documents at hearings. (2) Any person who willfully fails or neglects to appear and testify or to produce books, papers, or records required by subpoena, duly served upon him or her in any matter conducted under this part 7, commits a petty offense. Each day a person so refuses or neglects constitutes a separate offense.

C.R.S. § 12-10-716 Immunity

12-10-716. Immunity. A person participating in good faith in the filing of a complaint or report or participating in an investigation or hearing before the board or an administrative law judge pursuant to this part 7 shall be immune from any liability, civil or criminal, that otherwise might result by reason of the action.

C.R.S. § 12-10-717 Bond required - rules

12-10-717. Bond required - rules. (1) Before receiving a license, an applicant shall post with the board a surety bond in an amount prescribed by the board by rule. A licensed mortgage loan originator shall maintain the required bond at all times. The surety bond may be held by the individual mortgage loan originator or may be in the name of the company by which the mortgage loan originator is employed. The board may adopt rules to further define surety bond requirements. (2) The surety shall not be required to pay a person making a claim upon the bond until a final determination of fraud, forgery, criminal impersonation, or fraudulent representation has been made by a court with jurisdiction. (3) The surety bond shall require the surety to provide notice to the board within thirty days if payment is made from the surety bond or if the bond is canceled.

C.R.S. § 12-10-718 Fees

12-10-718. Fees. The board may set the fees for issuance and renewal of licenses and registrations under this part 7. The fees shall be set in amounts that offset the direct and indirect costs of implementing this part 7 and section 38-40-105. The money collected pursuant to this section shall be transferred to the state treasurer, who shall credit it to the division of real estate cash fund created in section 12-10-215.

C.R.S. § 12-10-719 Attorney general - district attorney - jurisdiction

12-10-719. Attorney general - district attorney - jurisdiction. The attorney general shall have concurrent jurisdiction with the district attorneys of this state to investigate and prosecute allegations of criminal violations of this part 7.

C.R.S. § 12-10-720 Violations - injunctions

12-10-720. Violations - injunctions. (1) (a) Any individual violating this part 7 by acting as a mortgage loan originator in this state without having obtained a license or by acting as a mortgage loan originator after that individual's license has been revoked or during any period for which the license may have been suspended commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501; except that, if the violator is not a natural person, the violator shall be punished by a fine of not more than five thousand dollars. (b) Each residential mortgage loan negotiated or offered to be negotiated by an unlicensed person shall be a separate violation of this subsection (1). (2) The board may request that an action be brought in the name of the people of the state of Colorado by the attorney general or the district attorney of the district in which the violation is alleged to have occurred to enjoin a person from engaging in or continuing the violation or from doing any act that furthers the violation. In such an action, an order or judgment may be entered awarding the preliminary or final injunction as is deemed proper by the court. The notice, hearing, or duration of an injunction or restraining order shall be made in accordance with the Colorado rules of civil procedure. (3) A violation of this part 7 shall not affect the validity or enforceability of any mortgage.

C.R.S. § 12-10-721 Prohibited conduct - influencing a real estate appraisal

12-10-721. Prohibited conduct - influencing a real estate appraisal. (1) A mortgage loan originator shall not, directly or indirectly, compensate, coerce, or intimidate an appraiser, or attempt, directly or indirectly, to compensate, coerce, or intimidate an appraiser, for the purpose of influencing the independent judgment of the appraiser with respect to the value of a dwelling offered as security for repayment of a residential mortgage loan. This prohibition shall not be construed as prohibiting a mortgage loan originator from requesting an appraiser to: (a) Consider additional, appropriate property information; (b) Provide further detail, substantiation, or explanation for the appraiser's value conclusion; or (c) Correct errors in the appraisal report.

C.R.S. § 12-10-722 Rule-making authority

12-10-722. Rule-making authority. The board has the authority to promulgate rules as necessary to enable the board to carry out the board's duties under this part 7.

C.R.S. § 12-10-723 Acts of employee - mortgage loan originator's liability

12-10-723. Acts of employee - mortgage loan originator's liability. An unlawful act or violation of this part 7 upon the part of an agent or employee of a licensed mortgage loan originator shall not be cause for disciplinary action against a mortgage loan originator unless it appears that the mortgage loan originator knew or should have known of the unlawful act or violation or had been negligent in the supervision of the agent or employee.

C.R.S. § 12-10-724 Dual status as real estate broker - requirements

12-10-724. Dual status as real estate broker - requirements. (1) Unless a mortgage loan originator complies with both subsections (2) and (3) of this section, he or she shall not act as a mortgage loan originator in any transaction in which: (a) The mortgage loan originator acts or has acted as a real estate broker or salesperson; or (b) Another person doing business under the same licensed real estate broker acts or has acted as a real estate broker or salesperson. (2) Before providing mortgage-related services to the borrower, a mortgage loan originator shall make a full and fair disclosure to the borrower, in addition to any other disclosures required by this part 7 or other laws, of all material features of the loan product and all facts material to the transaction. (3) (a) A real estate broker or salesperson licensed under part 2 of this article 10 who also acts as a mortgage loan originator shall carry on the mortgage loan originator business activities and shall maintain the person's mortgage loan originator business records separate and apart from the real estate broker or sales activities conducted pursuant to part 2 of this article 10. The activities shall be deemed separate and apart even if they are conducted at an office location with a common entrance and mailing address if: (I) Each business is clearly identified by a sign visible to the public; (II) Each business is physically separated within the office facility; and (III) No deception of the public as to the separate identities of the broker business firms results. (b) This subsection (3) shall not require a real estate broker or salesperson licensed under part 2 of this article 10 who also acts as a mortgage loan originator to maintain a physical separation within the office facility for the conduct of its real estate broker or sales and mortgage loan originator activities if the board determines that maintaining the physical separation would constitute an undue financial hardship upon the mortgage loan originator and is unnecessary for the protection of the public.

C.R.S. § 12-10-725 Written disclosure of fees and costs - contents - limits on fees - rules

12-10-725. Written disclosure of fees and costs - contents - limits on fees - rules. (1) A mortgage loan originator's disclosures must comply with all applicable requirements of: (a) The federal "Truth in Lending Act", 15 U.S.C. sec. 1601 et seq., and Regulation Z, 12 CFR 226 and 12 CFR 1026; (b) The federal "Real Estate Settlement Procedures Act of 1974", 12 U.S.C. sec. 2601 et seq., and Regulation X, 12 CFR 1024 et seq.; (c) The federal "Equal Credit Opportunity Act", 15 U.S.C. sec. 1691 and Regulation B, 12 CFR 202.9, 202.11, and 202.12 and 12 CFR 1002; (d) Title V, Subtitle A of the federal "Financial Services Modernization Act of 1999", also known as the "Gramm-Leach-Bliley Act", 15 U.S.C. secs. 6801 to 6809, and the federal trade commission's privacy rules, 16 CFR 313 and 314, adopted in accordance with the federal "Gramm-Leach-Bliley Act"; (e) The federal "Home Mortgage Disclosure Act of 1975", 12 U.S.C. sec. 2801 et seq., and Regulation C, 12 CFR 203 and 12 CFR 1003, pertaining to home mortgage disclosure; (f) The "Federal Trade Commission Act" of 1914, 15 U.S.C. sec. 45 (a), and 16 CFR 233; (g) The federal "Telemarketing and Consumer Fraud and Abuse Prevention Act", 15 U.S.C. secs. 6101 to 6108, and the federal trade commission's telemarketing sales rule, 16 CFR 310. (2) The board may, by rule, require mortgage loan originators to comply with other mortgage loan disclosure requirements contained in applicable statutes and regulations in connection with making any residential mortgage loan or engaging in other activity subject to this part 7.

C.R.S. § 12-10-726 Fee, commission, or compensation - when permitted - amount

12-10-726. Fee, commission, or compensation - when permitted - amount. (1) Except as otherwise permitted by subsection (2) or (3) of this section, a mortgage loan originator shall not receive a fee, commission, or compensation of any kind in connection with the preparation or negotiation of a residential mortgage loan unless a borrower actually obtains a loan from a lender on the terms and conditions agreed to by the borrower and mortgage loan originator. (2) If the mortgage loan originator has obtained for the borrower a written commitment from a lender for a loan on the terms and conditions agreed to by the borrower and the mortgage loan originator, and the borrower fails to close on the loan through no fault of the mortgage loan originator, the mortgage loan originator may charge a fee, not to exceed three hundred dollars, for services rendered, preparation of documents, or transfer of documents in the borrower's file that were prepared or paid for by the borrower if the fee is not otherwise prohibited by the federal "Truth in Lending Act", 15 U.S.C. sec. 1601, and Regulation Z, 12 CFR 226, as amended. (3) A mortgage loan originator may solicit or receive fees for third-party provider goods or services in advance. Fees for any goods or services not provided shall be refunded to the borrower, and the mortgage loan originator may not charge more for the goods and services than the actual costs of the goods or services charged by the third-party provider.

C.R.S. § 12-10-727 Confidentiality

12-10-727. Confidentiality. (1) Except as otherwise provided in the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008", 12 U.S.C. sec. 5111, the requirements under any federal law or law of this state regarding privacy or confidentiality of any information or material provided to the nationwide mortgage licensing system and registry, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to the information or material, shall apply to the information or material after it has been disclosed to the nationwide mortgage licensing system and registry. The information or material may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or confidentiality protections provided by federal or state law. (2) The board may enter into agreements with other government agencies, the Conference of State Bank Supervisors or its successor organization, the American Association of Residential Mortgage Regulators or its successor organization, or other associations representing government agencies as established by rule. (3) Information or material that is subject to privilege or confidentiality pursuant to subsection (1) of this section shall not be subject to the following: (a) Disclosure under a federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or the respective state; or (b) Subpoena, discovery, or admission into evidence in any private civil action or administrative process, unless with respect to a privilege held by the nationwide mortgage licensing system and registry regarding the information or material, the person to whom the information or material pertains waives the privilege, in whole or in part.

C.R.S. § 12-10-728 Mortgage call reports - reports of violations

12-10-728. Mortgage call reports - reports of violations. (1) The board may require each licensee or registrant to submit to the nationwide mortgage licensing system and registry mortgage call reports, which shall be in the form and contain the information required by the nationwide mortgage licensing system and registry. (2) The board may report violations of this part 7, enforcement actions, and other relevant information to the nationwide mortgage licensing system and registry.

C.R.S. § 12-10-729 Unique identifier - clearly displayed

12-10-729. Unique identifier - clearly displayed. Each person required to be licensed or registered shall show his or her or the entity's unique identifier clearly on all residential mortgage loan application forms and any other documents as specified by the board by rule or order.

C.R.S. § 12-10-730 Repeal of part - subject to review

12-10-730. Repeal of part - subject to review. (1) This part 7 is repealed, effective September 1, 2029. (2) Before the repeal, the licensing of mortgage loan originators and the registration of mortgage companies is scheduled for review in accordance with section 24-34-104. The department shall include in its review of mortgage loan originators and mortgage companies an analysis of the number and types of complaints made about mortgage loan originators and mortgage companies and whether the licensing of mortgage loan originators and the registration of mortgage companies correlates with public protection from fraudulent activities in the residential mortgage loan industry.

C.R.S. § 12-10-801 HOA information and resource center - creation - duties - rules - subject to review - repeal

12-10-801. HOA information and resource center - creation - duties - rules - subject to review - repeal. (1) There is hereby created, within the division, the HOA information and resource center, the head of which shall be the HOA information officer. The HOA information officer shall be appointed by the executive director pursuant to section 13 of article XII of the state constitution. (2) The HOA information officer shall be familiar with the "Colorado Common Interest Ownership Act", article 33.3 of title 38, also referred to in this section as the "act". No person who is or, within the immediately preceding ten years, has been licensed by or registered with the division or who owns stocks, bonds, or any pecuniary interest in a corporation subject in whole or in part to regulation by the division shall be appointed as HOA information officer. In addition, in conducting the search for an appointee, the executive director shall place a high premium on candidates who are balanced, independent, unbiased, and without any current financial ties to an HOA board or board member or to any person or entity that provides HOA management services. After being appointed, the HOA information officer shall refrain from engaging in any conduct or relationship that would create a conflict of interest or the appearance of a conflict of interest. (3) (a) The HOA information officer shall act as a clearing house for information concerning the basic rights and duties of unit owners, declarants, and unit owners' associations under the act by: (I) Compiling a database about registered associations, including the name; address; e-mail address, if any; website, if any; and telephone number of each; (II) Coordinating and assisting in the preparation of educational and reference materials, including materials to assist unit owners, executive boards, board members, and association managers in understanding their rights and responsibilities with respect to: (A) Open meetings; (B) Proper use of executive sessions; (C) Removal of executive board members; (D) Unit owners' right to speak at meetings of the executive board; (E) Unit owners' obligation to pay assessments and the association's rights and responsibilities in pursuing collection of past-due amounts; and (F) Other educational or reference materials that the HOA information officer deems necessary or appropriate; (III) Monitoring changes in federal and state laws relating to common interest communities and providing information about the changes on the division's website; and (IV) Providing information, including a "frequently asked questions" resource, on the division's website. (a.5) (I) The HOA information officer shall identify, to the extent practicable, cooperatives and planned communities that: (A) Prior to August 7, 2024, were subject to the entirety of article 33.3 of title 38; and (B) On and after August 7, 2024, are subject only to sections 38-33.3-105 to 38-33.3-107, as described in section 38-33.3-116. (II) On or after August 7, 2024, but no later than November 1, 2024, the HOA information officer shall notify each cooperative and planned community identified pursuant to subsection (3)(a.5)(I) of this section that: (A) As a result of the enactment of Senate Bill 24-021, enacted in 2024, the cooperative and planned community is subject only to sections 38-33.3-105 to 38-33.3-107, as described in section 38-33.3-116; and (B) Pursuant to section 38-33.3-116 (4), the cooperative and planned community may elect to be subject to the entirety of article 33.3 of title 38, and that a cooperative or planned community that so elects is required to adopt an amendment to its declaration in accordance with section 38-33.3-217 evidencing the cooperative or planned community's election to be subject to the entirety of article 33.3 of title 38. (III) This subsection (3)(a.5) is repealed, effective July 1, 2025. ect to be subject to the entirety of article 33.3 of title 38, and that a cooperative or planned community that so elects is required to adopt an amendment to its declaration in accordance with section 38-33.3-217 evidencing the cooperative or planned community's election to be subject to the entirety of article 33.3 of title 38. (III) This subsection (3)(a.5) is repealed, effective July 1, 2025. (b) The HOA information officer may: (I) Employ one or more assistants as may be necessary to carry out his or her duties; and (II) Request certain records from associations as necessary to carry out the HOA information officer's duties as set forth in this section. (c) The HOA information officer shall track inquiries and complaints and report annually to the director regarding the number and types of inquiries and complaints received. (4) The operating expenses of the HOA information and resource center shall be paid from the division of real estate cash fund, created in section 12-10-215, subject to annual appropriation. (5) The director may adopt rules as necessary to implement this section and section 38-33.3-401. This subsection (5) shall not be construed to confer additional rule-making authority upon the director for any other purpose. (6) This section is repealed, effective September 1, 2025. Before the repeal, the HOA information and resource center and the HOA information officer's powers and duties under this section are scheduled for review in accordance with section 24-34-104.

C.R.S. § 12-10-901 Definitions

12-10-901. Definitions. As used in this part 9, unless the context otherwise requires: (1) "Gas-fueled appliance" means a furnace, HVAC system, boiler, water heater, oven, stove, or dryer that directly combusts a gaseous or liquid fuel to provide services within a home. (2) "Heat pump" means an electrical device that uses a refrigeration cycle to: (a) Heat the internal space of a structure by transferring thermal energy from outside of the structure to inside the structure; or (b) Cool the internal space of a structure by transferring thermal energy from the inside of the structure to the outside of the structure. (3) "Home warranty service company" or "company" means any person that undertakes a contractual obligation on a new or preowned home through a home warranty service contract. (4) (a) "Home warranty service contract" means any contract or agreement whereby a person undertakes for a predetermined fee, with respect to a specified period of time, to maintain, repair, or replace any or all of the following elements of a specified new or preowned home: (I) Structural components, such as the roof, foundation, basement, walls, ceilings, or floors; (II) Utility systems, such as electrical, air conditioning, plumbing, HVAC, and heating systems, including furnaces; and (III) Appliances, such as stoves, washers, dryers, and dishwashers. (b) "Home warranty service contract" does not include: (I) Any contract or agreement whereby a public utility undertakes for a predetermined fee, with respect to a specified period of time, to repair or replace any or all of the elements of a specified new or preowned home as specified in subsection (4)(a)(II) or (4)(a)(III) of this section; or (II) A builder's warranty provided in connection with the sale of a new home. (5) "HVAC system" means a heating, ventilation, and air conditioning system. (6) "Person" includes an individual, company, corporation, association, agent, and every other legal entity. (7) "Preowned" means any of the following that is occupied as a residence and not owned by the builder-developer or first occupant: (a) A single-family residence; (b) A residential unit in a multiple-dwelling structure; or (c) A mobile home on a foundation.

C.R.S. § 12-10-902 Purchase of service contract not compulsory

12-10-902. Purchase of service contract not compulsory. A company selling, offering to sell, or effecting the issuance of a home warranty service contract under this part 9 shall not in any manner require a home buyer or seller, or prospective home buyer or seller, or person refinancing a home to purchase a home warranty service contract.

C.R.S. § 12-10-903 Contract requirements

12-10-903. Contract requirements. (1) Every home warranty service contract shall contain the following information: (a) A specific listing of all items or elements excluded from coverage; (b) A specific listing of all other limitations in coverage, including the exclusion of preexisting conditions if applicable; (c) The procedure that is required to be followed in order to obtain repairs or replacements; (d) A statement as to the time period, following notification to the company, within which the requested repairs will be made or replacements will be provided; (e) The specific duration of the home warranty service contract, including an exact termination date that is not contingent upon an unspecified future closing date or other indefinite event; (f) A statement as to whether the home warranty service contract is transferable; (g) A statement that actions under a home warranty service contract may be covered by the provisions of the "Colorado Consumer Protection Act" or the "Unfair Practices Act", articles 1 and 2 of title 6, and that a party to such a contract may have a right of civil action under those laws, including obtaining the recourse or penalties specified in those laws. (2) (a) A home warranty service contract issued or renewed in this state on or after July 1, 2024, that provides coverage for the replacement of a gas-fueled appliance must include terms: (I) Allowing the homeowner the option to replace the gas-fueled appliance with a similar device of the homeowner's choosing that operates on electricity rather than gas. A home warranty service contract may require a homeowner to pay any additional cost to replace a gas-fueled appliance with an appliance that has a cost that exceeds the cost of replacing the gas-fueled appliance with another gas-fueled appliance under the terms of the home warranty service contract; except that any additional cost to the homeowner for the replacement electric appliance, excluding any installation or other associated costs, must not exceed the retail cost of the replacement electric appliance minus the retail cost of a replacement gas-fueled appliance. (II) Providing that the home warranty service company is required to provide a replacement appliance that satisfies the efficiency requirements set forth in article 7.5 of title 6 and any other state law. (b) (I) In the case of replacement of a gas-fueled furnace, HVAC system, boiler, or water heater, a home warranty service contract must include terms that allow the homeowner to replace the furnace, HVAC system, boiler, or water heater with a heat pump-based system. (II) In the case of replacement of a gas-fueled stove, a home warranty service contract must include terms that allow the homeowner to replace the gas-fueled stove with either an electric stove or an induction stove, at the homeowner's discretion.

C.R.S. § 12-10-904 Penalty for violation

12-10-904. Penalty for violation. Any person who knowingly violates any provision of this part 9 commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501. Each instance of violation shall be considered a separate offense.

C.R.S. § 12-10-905 Prohibitions

12-10-905. Prohibitions. It is unlawful for any lending institution to require the purchase of a home warranty service contract as a condition for granting financing for the purchase of the home.

C.R.S. § 12-10-906 Repeal of part - subject to review

12-10-906. Repeal of part - subject to review. This part 9 is repealed, effective September 1, 2026. Before the repeal, this part 9 is scheduled for review in accordance with section 24-34-104.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-12.docxFetched: 10/6/2026

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