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The Division of Real Estate provides consumer protection through their enforcement of Colorado License Law and regulation of licensees. However, their are many other areas of real estate law, over which the Division of Real Estate has no jurisdiction, that can factor into the standard real estate transaction.
A: If you are a consumer involved in an earnest money dispute, this is a civil matter and you should likely seek legal advice. If you are a broker, the Division addresses the release of earnest money in their position statement CP-5 "Commission Position on Release of Earnest Money Deposits" which can be found here.
A: New home builders are exempt from licensing requirements and are not regulated by the Division of Real Estate. If you have questions or concerns regarding your purchase of a newly constructed home, you are encouraged to seek legal counsel.
A: Sellers in Colorado are required to disclose latent property defects of which they are aware. Neither home sellers nor home inspectors are regulated by the Division of Real Estate. If you suspect the seller of your property intentionally withheld information or feel your home inspector was negligent in failing to identify defects in the home, you should contact an attorney to discuss your legal options. If you have evidence that either the listing broker or your broker intentionally withheld known adverse material facts, you can file a complaint with the Division of Real Estate.
A: Colorado real estate agents may work with consumers as a Seller's Agent, a Buyer's Agent, a Transaction Broker, or as a customer. The description of the broker's duties when acting in each capacity are described in the "Definitions of Working Relationships"
A: Both the Exclusive Right to Sell and Exclusive Right to Buy listing contracts identify the consumer's right to cancel the listing contract in the event of Broker default. However, the Division of Real Estate does not determine if a Broker has defaulted under the terms of the listing contract or the enforceability of any contract between a consumer and broker. Consumers are advised to seek legal counsel to discuss their legal options.
A: Both the Exclusive Right to Sell Listing Contract and the Exclusive Right to Buy Listing Contract contain provisions that outline the circumstances under which both the real estate broker and consumer can cancel the listing contract. The Division of Real Estate does not determine if either party has the right to cancel. The rights of either party to cancel are matters of contract law and must be handled through civil means.
A: Division of Real Estate staff can not verify any previous or existing complaints related to a licensee unless an investigation has been completed and the resulting discipline included the sanction of "Public Censure". If a licensee has received "Public Censure", that will be noted in their disciplinary history accessible by our licensee look-up/broker search.
A: Real estate commissions are not standardized or regulated by the Division of Real Estate. Brokers and consumers are free to negotiated different commissions, including flat fees, specific to each individual real estate transaction.
A: The Consumer Financial Protection Bureau is the regulating agency for these entities .
A: The Division does not have jurisdiction over lenders and servicers. They are regulated on a national level by the Consumer Financial Protection Bureau. Additionally, The Colorado Office of the Attorney General regulates some lenders. You can check with them to see if they have jurisdiction over your lender.
A: The Division cannot recommend a specific appraiser. However, you can check for listings in the phone book, or do an online search for Colorado Appraisers. Additionally, many appraiser associations maintain an online roster of their members. These associations can be located by doing an online search for Colorado Appraiser Associations.
A: It depends. The requirements for lenders to provide a copy of an appraisal are summarized in "this FAQ from the Consumer Financial Protection Bureau"
A: Check with your lender or the Appraisal Management Company (AMC) that ordered the appraisal to see if they have a Dispute Resolution Process that you can go through.
A: The "Dodd-Frank Act", Section 1472(C) states that any person with an interest in a real estate transaction on the principal dwelling of the consumer is not prohibited from asking an appraiser to consider additional property information, to provide explanations, or to correct errors. You may be required to use an intermediary, such as the appraiser's client or an Appraisal Management Company, to communicate with the appraiser.
A: It is not a violation of license law for the appraised value to be lower, higher, or the same as the contract price. You can check to see if the lender or Appraisal Management Company has a Dispute Resolution Process through which you may be able to contest the appraisal. If you believe errors made during the development or reporting of the appraisal, you can "file a complaint with the Division", after which an investigator will examine the appraisal for compliance with appraiser license law.
A: An appraiser's fees and schedule are not regulated. Fees are generally determined by the market (supply and demand for appraiser's services) and the complexity of the assignment. You can check with the lender or Appraisal Management Company to see if they have a Dispute Resolution Process, or seek legal advice.
Property Managers
A: A real estate license is required if the activity conducted falls within the definition of a Real Estate Broker as defined in C.R.S. 12-61-101(2)(a). "§ 12-61-101, C.R.S. Definitions"
A: If a broker deposits money belonging to others as defined in the Commission Rule E-1(f), it must be held in a trust/escrow account as defined in Commission Rule E-1 and handled as prescribed in Commission Rule E-1(a-e). "Trust accounts; requirements and purposes"
