4 CCR 725-1
DEPARTMENT OF REGULATORY AGENCIES RULES REGARDING REAL ESTATE BROKERS 4 CCR 725-1 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________ A. License Qualifications, Applications and Examinations A-1. Repealed (1-6-00)
A-2. Requirements must precede exam and application.
Educational requirements for an initial license imposed by 12-61-103(4) and (6)(c)(II), C.R.S., must be completed and proof of completion filed in a method or manner as prescribed by the Commission prior to taking the examination and applying for a license. A-3. Examinations will be given only to duly qualified applicants for a real estate broker license, licensees upgrading a license, or licensees meeting the continuing education requirement; however, one instructor from each real estate school offering real estate courses required of applicants under section 12-61-103(4) C.R.S. may write the examination one time during any 12- month period.
A-4. Repealed.
A-5. Real estate license examination, exam expiration and application requirements. The real estate license examination is made up of two parts, a general portion and a state portion. If an applicant fails one or both parts of the exam, the applicant may retake the failed portion(s) at a subsequent time. A passing score for either part of the exam is valid for one year only. An application received by the Division must be accompanied by the statutory fee, proof of completion of the required education and experience requirements, and proof of successful completion of the appropriate portion(s) of the exam within the year prior to the application being received by the Division. No exam score for either portion of the exam will be considered valid after one year.
A-6. Repealed A-7. The Real Estate Commission will not certify to any person, state or agency any information concerning the results of any examination as it pertains to any person who has written the examination unless such person is or has been licensed as a Colorado real estate broker or pursuant to such examination; except, that the Commission may authorize a special examination for existing licensees for certification purposes.
A-8. Repealed.
A-9. Provided the applicant has submitted a complete and satisfactory application in compliance with 12-61-102 C.R.S., the Commission will issue a license within 10 business days after receipt by the Commission of satisfactory results from the fingerprint-based criminal history record check. If the application or record check is not complete or satisfactory, the applicant will be mailed a notice of deferred status. The license of a broker whose application has been approved by the Commission subject to the receipt of certain compliance items shall be issued on an inactive status if such compliance items are not submitted within 20 days after written notification by the Commission.
A-10. The Commission may deny or defer an original license application pursuant to 12-61-103(3). Under no circumstances will an examination be recognized by the Commission as complying with 12-61-103(6) after 18 months from the date an applicant took the examination which resulted in a passing score.
A-11. Certificate of license history required.
An applicant for a Colorado real estate license, who has held a real estate license in any other state must file with the application for a Colorado license a “certification of licensing history” issued by each state where the applicant is currently or was previously licensed as a real estate broker or salesperson. Such certificate must bear a date of not more than 90 days prior to the submission date of the application. If no longer licensed, such certificate must bear a date subsequent to the expiration date.
A-12.
(a) Pursuant to 12-61-103 C.R.S., an applicant who has been convicted or pleaded nolo contendere to a misdemeanor or a felony, or any like municipal code violation, or has such charges pending or has agreed to a deferred prosecution, a deferred judgment, or a deferred sentence (violations) (excluding misdemeanor traffic violations) within the last ten years must file prior to or with his or her application for licensing the following information and documentation:
(b)
A-14. Repealed [effective October 30, 2008] A-15. Any broker who has not submitted fingerprints to the Colorado Bureau of Investigation to be used to complete a one-time only criminal history record check, must do so prior to renewal of an active license. Renewed licenses will remain on inactive status until the Commission has received the results of a criminal record check. Fingerprints may be submitted for processing prior to renewal either electronically or on Card No. FD-258 in a manner acceptable to the Colorado Bureau of Investigation. The Commission may acquire a name-based criminal history record check for a renewing licensee who has twice submitted to a fingerprint-based criminal history record check and whose fingerprints are unclassifiable. A-16. Criminal history check required prior to application. Applicants for an initial license must submit a set of fingerprints to the Colorado Bureau of Investigation and Federal Bureau of Investigation for the purpose of conducting a state and national criminal history record check prior to submitting an application for a license. Fingerprints must be submitted to the Colorado Bureau of Investigation for processing in a manner acceptable to the Colorado Bureau of Investigation. Fingerprints must be readable and all personal identification data completed in a manner satisfactory to the Colorado Bureau of Investigation. A-17. The seventy two hours of instruction or equivalent distance learning hours required in 12-61- 103(4)(a)(III) C.R.S. must be satisfied by successful completion of courses of study approved by the Commission as follows:
(a) A minimum of 24 hours in Real Estate Closings; and (b) A minimum of 8 hours in Trust Accounts and Record Keeping; and (c) A minimum of 8 hours in Current Legal issues; and (d) A minimum of 32 hours in Practical Applications.
A-18. Repealed (effective 1-1-96)
A-19. Repealed (effective 3-4-99)
A-20. If the applicant for licensure is denied by the Commission for any reason, the applicant will be informed of the denial and the reason therefore.
A-21. Repealed (effective 1-1-97)
A-22. Repealed.
A-23. Completion of the courses of study approved by the Commission as required in 12-61- 103(4)(a)(I), (II), (III), & 6(c) (II) C.R.S., whether through classroom or distance learning, must be based upon educational principles acceptable to the Real Estate Commission. A-23.5 Repeal 5/3/05 A-24. The Commission may audit courses and may request from each school offering a Commission approved course of study under 12-61-103(4)(a) and (b), C.R.S., all instructional material related thereto and student attendance records as may be necessary for an investigation in the enforcement of Section 103 of the License Law and Commission Rules and Regulations. The purpose of the audit shall be to ensure that schools adhere to the approved course of study, offer course material and instruction consistent with acceptable education standards and instruct in such a manner that the desired learning objectives are met. Failure to comply with the provisions of this rule may result in the withdrawal of Commission course approval. A-25. If the fees accompanying any application or registration made to the Commission (including fees for the recovery fund, renewals, transfers, etc.) are paid for by check and the check is not immediately paid upon presentment to the bank upon which the check was drawn, the application shall be canceled; the application may be reinstated only at the discretion of the Commission and upon full payment of any fees together with payment of the fee required by state fiscal rules for the clerical services necessary for reinstatement.
A-26. Pursuant to 12-61-103(7)(c) C.R.S., a temporary broker's license maybe issued to a corporation, partnership or limited liability company to prevent hardship. No application for a temporary broker's license will be approved unless the designated individual is a Colorado real estate broker with two years of active license experience as indicated by the records of the Real Estate Commission. No more than two temporary licenses may be issued to any corporation, partnership or limited liability company, whether consecutive or not, during any 18 month period, except by the Commission.
B. Continuing Education B-1. When continuing education is required.
Licensees must satisfy the continuing education requirements for a licensing cycle prior to applying to renew an active license, to activate an inactive license or to reinstate an expired license to active status. The licensing cycle includes: anniversary year; calendar year; and transition period.
(a) Anniversary year cycle: This is the three-year period commencing on the licensee’s initial date of license issuance (anniversary date) and expiring three years later on the same date. (The anniversary date may be any day of the calendar year.) (b) Calendar year cycle: This is the three-year period commencing on January 1 of year one and expiring on December 31 of year three. All licensees will eventually be on a calendar year cycle for their license renewal.
(c) Transition period: This is the two-year period plus a partial year commencing on the anniversary date when a licensee’s license expires in the years of 2018, 2019 or 2020 and expiring two years plus the remaining days in the third year to reach December 31. (The length of the transition period is dependent on the anniversary date and could be as long as three years or as short as two years and one day.) B-2. Methods of completing continuing education.
Licensees may satisfy the entire continuing education requirement for a license cycle through one of the following options:
(a) Complete the twelve hours required by section 12-61-110.5(1)(c), C.R.S., and required by this rule in annual 4-hour increments developed by the Commission, otherwise referred to as the “Annual Commission Update Course.” Licensees who choose this option must complete an additional 12 hours of elective credit hours to meet the 24-hour total continuing education requirement during the license cycle in subject areas listed in section 12-61-110.5(3), C.R.S. Please note that a licensee may not take the same version of the Annual Commission Update Course more than once. If a licensee takes more than 12 hours of the Annual Commission Update course during a license cycle, the licensee will receive elective credit hours for any additional hours. (a.1) To accommodate licensees during the transition period, licensees may complete two different versions of the Annual Commission Update Course to satisfy the eight (8) hours of mandated education pursuant to section 12-61-110.5(1)(d), C.R.S. Licensees who choose this option must complete an additional 16 hours of elective credit hours to meet the 24-hour total continuing education requirement during the transition period in subject areas listed in section 12-61-110.5(3), C.R.S.
(b) Complete the Commission approved 24-hour “Broker Reactivation Course.” This option is available to licensees under one of the following conditions:
(c) Pass the Colorado state portion of the licensing exam.
(d) Complete 72 total hours of pre-licensure education concerning the understanding and preparation of Colorado real estate contracts (48 hours) and real estate closings (24 hours). The courses and course providers are required to comply with the requirements as described at section 12-61-103(4)(a), C.R.S. Any inactive or expired licensee who cannot meet the education requirements listed in section (a), (a.1), (b), or (c), must comply with the education requirements found in section (d) of this rule before activation or reinstatement of the license.
B-3. Annual Commission Update course standards.
(a) Pursuant to 12-61-110.5(2), C.R.S. and Rule B-2(a), the 4-hour “Annual Commission Update” course shall be developed and presented by the Division of Real Estate and furnished to approved providers. Said course shall be presented without additional development by the provider or instructor.
(b) Any provider specified in commission rule B-6(a) or B-7(a) may request and offer the “Annual Commission Update” course. All other providers must apply annually for approval to offer the course using the commission-approved form and procedures in commission rule B-12, except that the course outline (B-12(a)) and course exam (B- 12(b)) will be furnished by the Commission.
(c) Each active licensed broker must complete the “Annual Commission Update” course by achieving a passing score of 70% on a written or on-line course examination developed by the Commission. The Commission shall provide multiple course examinations for successive use by licensed brokers failing the end-of-course examination. B-4. All continuing education courses may be offered and completed by distance learning (i.e. courses outside the traditional classroom setting in which the instructor and learner are separated by distance and/or time.
B-5. The following types of courses will not qualify for continuing education credit:
(a) Sales or marketing meetings conducted in the general course of a real estate brokerage practice.
(b) Orientation, personal growth, self-improvement, self-promotion or marketing sessions.
(c) Motivational meetings or seminars.
(d) Examination preparation or exam technique courses.
B-6. The following courses, subject to all other provisions of Rule B, if within the topic areas listed in 12-61-110.5 (3) C.R.S., will be accepted for elective continuing education credit without Commission pre-approval.
a) Courses offered by accredited colleges, universities, community or junior colleges, public or parochial schools or government agencies.
b) Courses developed and offered by quasi-governmental agencies.
c) Courses approved by and taken in satisfaction of another occupational licensing authority’s education requirements.
d) Courses in real property law by a provider approved by the Colorado Board of Continuing Legal and Judicial Education.
e) Repealed.
f) Repealed.
B-7. The following continuing education courses must receive Commission approval prior to offering:
a) Courses offered by proprietary real estate schools approved by the Colorado Division of Private Occupational Schools.
b) Currently approved courses that are affected by any substantive changes.
c) Courses offered by any provider proposing to offer course(s) on subjects not listed in C.R.S. 12-61-110.5(3)
d) Courses offered by proprietary real estate schools approved as out of state providers by the Colorado Department of Private Occupational Schools, and are not approved pursuant to Rule B-6.
e) Courses offered by employing brokers to their employed brokers.
f) Courses offered by providers exempt under the provisions of 12-59-104, C.R.S.
g) Courses offered by local, state or national REALTOR® Associations. B-8. Administrative rules for continuing education courses. The following course format and administrative requirements apply to all Colorado continuing real estate education for licensed brokers:
(a) Courses must be at least 1 hour in length, containing at least 50 instructional minutes.
(b) A maximum of 8 hours of credit may be earned per day.
(c) No course may be repeated for credit in the same calendar year.
(d) Instructors may receive credit for classroom teaching hours once per course taught per year.
(e) Hours in excess of 24 may not be carried forward to satisfy a subsequent renewal requirement.
(f) No school/provider may waive, excuse completion of, or award partial credit for the full number of course hours.
(g) No challenge exam or equivalency may substitute for the full course outline.
(h) No credit may be earned for remedial education stipulated to between a licensed broker and the Commission as part of a disciplinary action, or alternative to disciplinary action.
(i) No course offering by a provider will be accepted unless the provider has either been granted a certificate of approval by the Colorado Department of Higher Education, Division of Private Occupational Schools, or is exempt from such requirement pursuant to 12-59-104, C.R.S.
(j) Courses approved for continuing education must maintain and improve a broker’s skill, knowledge, and competency in real estate practice.
B-9. Course approval certification shall be for a period of three years, except that an annual or one- time seminar or conference offering may be approved for a specific date or dates. B-10. Each Colorado licensed broker is responsible for securing from the provider evidence of course completion in the form of an affidavit, certificate or official transcript of the course. Said documentation must be in sufficient detail to show the name of the licensee, course subject, content, duration, date(s) and contain the authentication of the provider. Licensees must retain proof of continuing education completion for 4 years, and provide said proof to the Commission upon request.
B-11. Provider must retain records.
Each approved provider must retain copies of course outlines or syllabi and complete records of attendance for a period of four (4) years, and provide the records to the Commission upon request.
B-12. Continuing education providers required to have Commission course approval must, in accordance with all of the provisions of this Rule B, submit an application form prescribed by the Commission, along with the following information at least 30 days prior to the proposed class dates:
(a) Detailed course outline or syllabus, including the intended learning outcomes, the course objectives and the approximate time allocated for each topic.
(b) A copy of the course exam(s) and instructor answer sheet if applicable. In the absence of an exam, the criteria used in evaluating a person's successful completion of the course objectives.
(c) Copy of instructor teaching credential; if none, a resume showing education and experience which evidence mastery of the material to be presented.
(d) A copy of advertising or promotional material used to announce the offering.
(e) Upon Commission request, a copy of textbook, manual, audio or videotapes, or other instructional material.
(f) Effective January 1, 2001, providers of continuing education offered through distance learning must submit evidence in a form prescribed by the real estate commission that the method of delivery and course structure is consistent with acceptable education standards assuring that the desired learning objectives are met. The Commission will approve methods of delivery certified by the Association of Real Estate License Law Officials (ARELLO), or by a substantially equivalent authority and method. B-13. By offering real estate continuing education in Colorado, each provider agrees to comply with relevant statutes and Commission rules and to permit Commission audit of said courses at any time and at no cost.
B-14. The act of submitting an application for renewal, activation or reinstatement of a real estate license shall mean that the licensee attests to compliance with the continuing education requirements of C.R.S. 12-61-110.5 C. Licensing - Office C-1. A broker licensed as an individual or as an individual doing business under a trade name shall be the sole owner of the brokerage business or such brokerage business will be considered as a partnership and the partnership shall apply for a broker's license under 12-61-103(7) C.R.S. C-2. Resident broker required to have office; exceptions Every resident Colorado real estate broker shall maintain and supervise a brokerage practice available to the public, except those brokers registered in the Commission office as in the employ of another broker or those brokers registered as inactive. C-3. Responsible broker availability.
Any broker licensed as an individual proprietorship or the acting broker for a corporation, partnership, or limited liability company must be reasonably available to manage and supervise such brokerage practice.
C-4. Repealed effective 1-1-97 C-5. Repealed effective 1-1-97 C-6. Repealed effective 1-1-97 C-7. Repealed effective 1-1-97 C-8. Repealed effective 1-1-97 C-9. Repealed.
C-10. Repealed.
C-11. Repealed.
C-12. Repealed.
C-13.
(a) Repealed (b) Repealed C-14. Repealed.
C-15. Repealed.
C-16. No agreement shall be entered into by any licensee whereby an individual licensee lends their name or license for the benefit of another person, partnership, limited liability company or corporation, whereby the provisions of the Colorado Real Estate Broker License Law and Commission Rules relating to licensing are circumvented. C-17. The Commission may refuse to issue a license to a partnership, limited liability company or corporation if the name of said corporation, partnership or limited liability company is the same as that of any person or entity whose license has been suspended or revoked or is so similar as to be easily confused with that of the suspended or revoked person or entity by members of the general public.
C-18. Brokerage activity only in trade name or full licensed name. An independent or employing broker may adopt a trade name according to Colorado law and such trade name will appear on the face of the independent or employing broker’s license, however, pursuant to 12-61-103(10), C.R.S. such independent or employing broker must conduct brokerage business only under such trade name or conduct brokerage business under the entire name appearing on the face of the license. Employed brokers, who are licensed under an employing broker that is doing business under a trade name, shall be licensed under the entire name appearing on the face of the license, and not under the brokerage’s or individual’s trade name.
C-19. Repealed.
C-20. No broker's license will be issued to a broker under a trade name, corporate name, partnership name or limited liability company name which is identical to another licensed broker's trade name, corporate, partnership or limited liability company name. C-21. A broker licensed as an individual proprietorship shall not adopt a trade name which includes the following words: Corporation, Partnership, Limited Liability Company, Limited, Incorporated, or the abbreviations thereof.
C-22. Employing broker qualifications for business entities. When a broker applicant submits an application to qualify:
(a) A corporation as a real estate brokerage company, the broker applicant must certify that:
(b) A partnership as a real estate brokerage company, the broker applicant must certify that:
(c) A limited liability company as a real estate brokerage company, the broker applicant must certify that:
Pursuant to 12-61-101(2), C.R.S., offering to rent or lease real estate or renting or leasing real estate requires a Colorado real estate broker’s license. If a brokerage firm employs an unlicensed on-site manager, the employing broker must:
(a) Actively and diligently supervise all activities of the on-site manager or delegate the supervisory responsibility in writing to a qualified employed broker;
(b) Require the on-site manager to report directly to either the employing broker or the delegated employed broker;
(c) Require the on-site manager account for and remit all monies, including rents and security deposits, collected on behalf of the broker or owner to the employing broker or the delegated employed broker;
(d) Ensure that property maintenance scheduled by the on-site manager is performed in accordance with the executed property management agreement;
(e) Engage the on-site manager, either as a regularly salaried employee or as an independent contractor, and pay the on-site manager through the real estate brokerage firm. The salary may include rent value or other non-commission income.
(f) Instruct the on-site manager to not negotiate any of the material terms of a lease or rental agreement with a tenant or prospective tenant.
The unlicensed on-site manager may fill in blanks, as a scrivener, on lease forms provided by the brokerage firm, show prospective tenants available units, quote rental prices established by the owner or broker, arrange for maintenance, and collect monies, including security deposits and rents.
C-24. Repealed.
C-25. Notice of termination; employing broker.
The employing broker of a licensed corporation, partnership, or limited liability company must immediately notify the Commission in a manner acceptable to the Commission, of the employing broker’s termination of employment with such licensed corporation, partnership, or limited liability company, or upon the employing broker’s failure to continue to comply with 12-61-103, C.R.S. and applicable rules. Upon such notification, the employing broker and all employed licensees shall be placed on inactive status.
C-26. A broker license may be issued on an inactive status.
D. Renewal, Transfer, Inactive License, Errors and Omissions Insurance D-1. Repealed D-2. A real estate licensee may request that the Commission records show their license inactive until proper request for reactivation has been made.
D-3. A real estate licensee whose license is on inactive status must apply for renewal of such inactive license and pay the regular renewal fees.
D-4. Renewal of all licenses can be effected by use of the renewal application form provided by the Commission or by other methods acceptable to the Real Estate Commission. D-5. Repealed.
D-6. License renewal notification.
Notification that a license will expire, unless renewed, will be sent to the electronic mail address on file with the Commission.
D-7. When a real estate license is on an inactive status or has been transferred to a subsequent employing broker, a licensee may be compensated directly by a previous employing broker for commissions earned during that term of employment.
D-8. Repealed.
D-9. Form and fees required to change license.
No changes in license status will be made except in a manner acceptable to the Commission to effect such change and upon payment of the statutory fees for such changes. D-10. Repealed.
D-11. Initial license.
Effective January 1, 2018, each applicant who has satisfied the requirements for licensure will be issued a license expiring December 31 of the year of issue. Thereafter, a licensee will renew a license on a calendar year cycle commencing on January 1 of year one and expiring on December 31 of year three.
D-12. All fees paid for the renewal of a license shall be non-refundable. D-13. Transition period license renewals.
Upon receipt of a complete and satisfactory application accompanied with payment of the appropriate fee, the Commission will renew a license expiring on the anniversary date in the years of 2018, 2019 or 2020, for a period of time equal to two years plus the remaining days in the third year to reach December 31. Thereafter, a licensee will renew a license on a calendar year cycle commencing on January 1 of year one and expiring on December 31 of year three. D-14. Errors and omissions (E&O) insurance (See 12-61-103.6, C.R.S.) Every active real estate licensee shall have in effect a policy of errors and omissions insurance to cover all acts requiring a license. In addition, all active licensed real estate companies that employ licensees in addition to the responsible broker must also have in effect a policy of errors and omissions insurance to cover all acts requiring a license.
(a) The Commission shall enter into a contract with a qualified insurance carrier to make available to all licensees and license applicants a group policy of insurance under the following terms and conditions (hereafter referred to as the “Commission Insurance Policy”):
(b) The Commission Insurance Policy shall provide, at a minimum, the following terms of coverage:
(c) Licensees or applicants may obtain errors and omissions coverage independent of the Commission Insurance Policy from any insurance carrier subject to the following terms and conditions:
(d) Applicants for licensure, activation, renewal and reinstatement shall certify compliance with this rule and 12-61-103.6 C.R.S. on forms or in a manner prescribed by the Commission. Any active licensee who so certifies and fails to obtain errors and omissions coverage or to provide proof of continuous coverage, either through the group carrier or directly to the Commission, shall be placed on inactive status:
D-15. REPEALED.
D-16. REPEALED.
D-17. Transition period license reinstatements.
An expired license may be reinstated as follows:
(a) If proper application is made within thirty-one days after the date of expiration of a license, by payment of the regular renewal fee, the license will be issued as prescribed in rule D-13.
(b) If proper application is made more than thirty-one days but within one year after the date of expiration of a license, by payment of the regular renewal fee and payment of a reinstatement fee equal to one-half the regular renewal fee, the license will be issued with an expiration date of December 31 of the year of issuance. Thereafter, a licensee will renew a license on a calendar year cycle commencing on January 1 of year one and expiring on December 31 of year three.
(c) If proper application is made more than one year but within three years after the date of expiration of a license, by payment of the regular renewal fee and payment of a reinstatement fee equal to the regular renewal fee, the license will be issued with an expiration date of December 31 of the year of issuance. Thereafter, a licensee will renew a license on a calendar year cycle commencing on January 1 of year one and expiring on December 31 of year three.
E. Separate Accounts - Records - Accountings - Investigations E-1. Trust accounts; requirements and purposes All “money belonging to others” accepted by a resident or non-resident broker doing business in this state shall be deposited in one or more accounts separate from other money belonging to the broker or brokerage entity. The broker shall identify the fiduciary nature of each separate account in the deposit agreement with the recognized bank or institution by the use of the word “trust” or “escrow” and a label identifying the purpose/type of such account, i.e., “sales escrow”, “rental escrow”, “security deposit escrow”, “owners association escrow”, or other abbreviated form defined in the deposit agreement. Unless otherwise permitted by other subsections of this rule, all money belonging to others shall be deposited according to the purpose of the transaction in separate types of escrow accounts. The broker shall retain a copy of each account deposit agreement executed for inspection by an authorized representative of the Commission.
(a) Accounts in name of broker and business entity Such separate trust accounts must be maintained in the name of the licensed broker or if the licensed broker is a partnership, corporation or limited liability company, such account shall be maintained in the name of the broker acting for such partnership, corporation or limited liability company and in the name of the licensed partnership, limited liability company or corporation. The licensed broker must be able to withdraw money from such separate account, but may authorize other licensed or unlicensed cosigners. However, such authorization shall not relieve the broker of any responsibility under the licensing act.
(b) Accounts in name of employing broker only When a broker is registered in the office of the Real Estate Commission as in the employ of another broker the responsibility for the maintenance of all trust accounts shall be the responsibility of the employing broker.
(c) Escrow funds must be available immediately without penalty Money belonging to others shall not be invested in any type of account or security or certificate of deposit which has a fixed term for maturity or imposes any fee or penalty for withdrawal prior to maturity unless the written consent of all parties to the transaction has been secured.
(d) Repealed (effective 1-1-96)
(e) Commingling prohibited A broker’s personal funds shall not be commingled with money belonging to others except that an arrangement may be made with a depository to deposit a sufficient amount of the broker’s funds to maintain such account. One or more separate escrow or trust bank accounts may be maintained by a broker pursuant to the following duties and limitations:
(f) Money belonging to others defined Money belonging to others which is received by the broker includes but is not limited to money received in connection with: property management contracts; partnerships; limited liability companies; syndications; rent or lease contracts; advance fee contracts; guest deposits for short term rentals; escrow contracts; collection contracts; earnest money contracts; or, money belonging to others received by the broker for future investment or other purpose.
(g) Earnest money on new construction If a broker who is also acting as a builder receives deposit money under an executory sales contract which provides for the construction of a house, the deposit money must be placed in a trust account and not used for construction purposes unless the written consent of the purchaser is secured.
(h) Separate escrow accounts required for managing 7 or more residences A broker who manages less than seven (7) single-family residential units may deposit rental receipts and security deposits and disburse money collected for such purposes in the “sales escrow” account.
(i) Repealed (effective 1-1-96)
(j) Installment land contract If a conveyance is made by an installment contract for a deed and if such contract contains a provision whereby the broker signs the installment contract as the receipting broker, the broker must escrow the receipted money pursuant to Rule E-l until the owner signs acceptance of the contract and a copy of the fully executed contract is delivered to the purchaser.
(k) Encumbrance before delivery of deed When a sales contract or an installment contract for the sale of an interest in real estate is signed by the parties to the transaction and the purchaser also executes a promissory note and/or a mortgage or trust deed encumbering such property before the seller delivers the deed, then all payments received by the broker pursuant to such contract shall be deposited in a trust account in a recognized depository until delivery of such deed to the purchaser unless the broker receives specific written consent from all parties concerning disposition of such funds. This rule shall apply whether or not the broker and seller are one and the same.
(l) Earnest money Checks received as earnest money under an earnest money contract must be identified as a check in the contract and may be withheld from presentment for payment only if so disclosed in the contract or pursuant to the written instructions of the seller. If a note is received as earnest money under an earnest money contract, the seller must be informed by identifying the note in the contract and by informing the seller of the date such note becomes due by stating the due date in the contract or attaching a copy of the note to the contract. The broker must present the note or check for payment in a timely manner and if payment is not made, the broker shall promptly notify the seller.
(m) Time limits for deposit of money belonging to others Except as provided in Rule E-l (o), all money belonging to others which is received by a broker as a property manager shall be deposited in such broker’s escrow or trust account not later than five business days following receipt. All other money belonging to others which is received by a broker shall be deposited in such broker’s escrow or trust account not later than the third business day following receipt.
(n) Listing broker holds escrow funds; delivery to third party Except as otherwise agreed to in writing, in any real estate transaction in which one broker holds a listing contract on a property and where the selling broker receipts for earnest money under a contract, the selling broker shall deliver the contract and the earnest money to the listing broker who shall deposit the earnest money in the broker’s escrow or trustee account in a recognized depository not later than the third business day following the day on which the broker receives notice of acceptance of such contract. If such selling broker receipts for a promissory note, or thing of value, such note or thing of value shall be delivered with the contract to the listing broker to be held by the listing broker. Any check or note shall be payable to, or assigned to, the listing broker.
(o) Recordkeeping requirements A broker shall supervise and maintain, at the broker’s licensed place of business, a record keeping system, subject to subsection (7) of this rule, consisting of at least the following elements for each required escrow or trust account:
(p) Diversion/Conversion prohibited Money belonging to one beneficiary of a separate trust or escrow account shall not be used for the benefit of another beneficiary of a trust, or escrow account.
(q) Items in lieu of cash Any instrument or equity or thing of value taken in lieu of cash shall be held by the broker except as otherwise agreed.
(r) Branch office trust accounts require branch office recordkeeping In the event a branch office maintains a trust account, separate from the trust account(s) maintained by the main office, a separate record keeping system must be maintained in the branch office.
(s) Repealed (effective 1-1-96)
(t) Number of separate accounts may vary from zero to unlimited A broker is not limited as to the number of separate accounts which may be maintained for money belonging to others and if the broker is not in possession of money belonging to others, there is no obligation to maintain a separate account. E-2. When money is collected by a broker for the performance of specific services or for the expenses of performing such services, or for any other expense including but not limited to advertising expenses in regard to the sale or management of real property, or a business opportunity, and such money is collected before the advertising or other services have been performed, the broker shall deposit such money in an escrow or trust account pursuant to 12-61-113(1)(g.5) C.R.S. No money may be withdrawn from such person's funds, except for actual authorized expenses paid to perform the service, or on behalf of that person, until the broker has fully performed the services agreed upon. A full and itemized accounting must be furnished the person within 30 days of any withdrawal of funds from the escrow or trust account. Nothing in this section shall prohibit a licensee from taking a non-refundable retainer which need not be deposited into an escrow or trust account provided this is specifically agreed to in writing between the licensee and the person paying the retainer.
E-3. A real estate licensee shall produce for inspection by an authorized representative of the Real Estate Commission any document or record as may be reasonably necessary for investigation or audit in the enforcement of Title 12 Article 61 and in enforcement of the rules and regulations of the Real Estate Commission. Failure to submit such documents or records within the time set by the Commission in its notification shall be grounds for disciplinary action unless the Commission has granted an extension of time for such production. However, a broker who is also acting as a manager for an owners association shall turn all association management records and supporting documentation over to the association at the end of the broker's term of management. Such records are the property of the owners association and if the broker wishes to maintain copies for the broker's own files these must be made at the broker's expense. E-4 Document Preparation and Duplicates Contracting instruments for all real estate or business opportunity transactions in which a real estate broker participates, including agency and sales contracts, shall accurately reflect the financial terms of the transaction by itemizing things of value paid or received and identifying the party or parties conveying, receiving and/or ultimately benefitting from such things of value. All such terms made subsequent to the original contracting document shall be disclosed in an amending instrument. For the purpose of this rule, the term “things of value” shall include monetary considerations as well as the exchange of tangible, non-monetary assets. A real estate broker shall immediately deliver a duplicate of the original of any instrument (except deeds, notes and trust deeds or mortgages, prepared by and for the benefit of third party lenders) to all parties executing the same when such instrument has been prepared by the broker or the broker’s employed licensee or closing entity and relates to the employment or engagement of the broker or pertains to the consummation of the leasing, purchase, sale or exchange of real property in which the broker may participate as a broker. For purposes of this rule, duplicate shall mean legible photocopy, carbon copy, facsimile, or electronic copies which contain a digital or electronic signature as defined in 24-71-101(1) C.R.S. Such broker shall retain a copy of the duplicate instruments for future use or inspection by an authorized representative of the Real Estate Commission. If a broker or the broker’s agent prepares a mortgage or trust deed for the benefit of a buyer or seller, an unsigned duplicate of such security instrument, together with a copy of the note, unsigned or prominently marked “copy,” shall be furnished to the purchaser; copies shall also be retained in such broker's office for further use or inspection by an authorized representative of the Real Estate Commission. Cooperating brokers, including brokers acting as agents for buyers in a specific real estate transaction, shall have the same requirements for retention of copies as stated above, except that a cooperating broker who is not a party to the listing contract need not retain a copy of the listing contract or the seller’s settlement statement. Pursuant to Rule E-3, a broker is not required to obtain and retain copies of existing public records, title commitments, loan applications, lender required disclosures or related affirmations from independent third party closing entities after the settlement date. E-5. Pursuant to 12-61-113(1)(h), at time of closing, the individual licensee who has established a brokerage relationship with the buyer or seller or who works with the buyer or seller as a customer, either personally or on behalf of an employing broker, shall be responsible for the proper closing of the transaction and shall provide, sign and be responsible for an accurate, complete and detailed closing statement as it applies to the party with whom the brokerage relationship has been established. If signed by an employed licensee, closing statements shall be delivered to the employing broker immediately following closing. Nothing in this rule shall relieve an employing broker of the responsibility for fulfilling supervisory responsibilities pursuant to 12- 61-103 (6)(c), 12-61-113(1)(o), 12-61-118 C.R.S and Rules E-31 and E-32.
(a) Subject to Rule E-4, an employing or independent broker with whom a brokerage relationship has been established, either personally or through an employed licensee, shall retain a copy of all closing statements approved by the respective buyers or sellers for future use or for inspection by an authorized representative of the Real Estate Commission.
(b) The closing statement or statements of all real estate or business opportunity transactions in which a real estate broker participates shall show the date of closing, the total purchase price of the property, itemization of all adjustments, money, or things of value received or paid showing to whom each item is credited and/or to whom each item is debited, the dates of the adjustments shall be shown if not the same as the date of the closing, also shown shall be the balances due from the respective parties to the transaction, and the names of the payees, makers and assignees, of all notes paid or made or assumed; the statements furnished to each party to the transaction shall contain an itemization of such credits and such debits as pertain to each respective party. THE CREDITS AND DEBITS CONCERNING THE SALE OF A PREOWNED HOME WARRANTY SERVICE CONTRACT SHALL BE DISCLOSED ON THE CLOSING STATEMENTS.
(c) Closing statements shall be provided to the respective parties at the time of the delivery and acceptance of the title whether such delivery and acceptance be effected by bill of sale, deed or by an installment contract to give a deed at a future date.
(d) If closing documents and statements are prepared by, and the closing is conducted by, an employing broker's company such broker is primarily responsible for the accuracy and completeness of the settlement statements and documents.
(e) If a licensee with whom a brokerage relationship has been established is unable to attend a closing or review closing documents, another licensee may agree or be designated by an employing broker to review and sign a closing statement and will assume joint responsibility with the absent licensee for its accuracy, completeness and delivery.
(f) A broker may transfer funds pertinent to a real estate transaction from a trust or escrow account to a lawyer or a closing entity acting on behalf of the broker at or before closing or final settlement. The broker will not be relieved of responsibilities in regard thereto. The broker delivering the earnest money deposit to a lawyer or a closing entity providing settlement services shall obtain a dated and signed receipt from the person or entity providing settlement services and retain a copy of the receipt in the office transaction file. The settlement statements prepared by the lawyer or closing entity shall bear the names of the licensee who signs the statement and the employing broker if applicable. E-6. Electronic Records Records as required under Title 12, Article 61, Parts 1-8 C.R.S. and rules promulgated by the Commission, may be maintained in electronic format. An electronic record as defined in 24-71.7- 103 C.R.S. means a record generated, communicated, received, or stored by electronic means. Such electronic records shall be produced upon request by the Commission and must be in a format that has the continued capability to be retrieved and legibly printed. Upon request of the Commission, or by any principal party to a transaction, printed records shall be produced. E-7. Repealed (Effective February 1, 2001)
E-8. Advertising (a) Names
(b) Teams
(c) Internet
(d) Sales Data
E-9. Repealed effective 1-1-97 E-10. A broker license is non transferable. No licensee shall, and no broker shall permit, employed licensees to present or to hold themselves out to the public as an employing or independent real estate broker.
E-11. When a licensee secures a written agreement to perform activities requiring a license, a definite date for termination shall be included therein.
E-12 When a written agreement contains a provision entitling the broker to a commission on a sale or purchase made after the expiration of the agreement, such provision must refer only to those persons or properties with whom or on which the broker negotiated during the term of the agreement, and whose names or addresses were submitted in writing to the seller or buyer during the term of the agreement, including any extension thereof. E-13. A real estate licensee shall not negotiate a sale, exchange, lease or listing contract of real property directly with an owner for compensation from such owner if such licensee knows that such owner has a written unexpired contract in connection with such property which grants to another licensee an exclusive right to sell or lease or which grants an exclusive agency right to sell or lease.
However, when a licensee is contacted by an owner regarding the sale, exchange, lease or listing of property that is exclusively listed with another broker, and the licensee has not initiated the discussion, the licensee may negotiate the terms upon which to take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing.
Additionally, a real estate licensee shall not negotiate a purchase, exchange, lease or exclusive right to buy contract with a buyer if such licensee knows that such buyer has a written, unexpired contract which grants to another licensee an exclusive right to buy. However, when a licensee is contacted by a buyer regarding the purchase, exchange or lease of property, and the licensee has not initiated the discussion, the licensee may enter into or negotiate the terms upon which to enter into a future exclusive right to buy contract to become effective upon expiration of any existing exclusive right to buy contract. E-14. A real estate licensee shall recommend, before the closing of a real estate transaction, the examination of title and shall advise the use of legal counsel. E-15. When for any reason the owner fails, refuses, neglects or is unable to consummate the transaction as provided for in the contract, and through no fault or neglect of the purchaser the real estate transaction cannot be completed, the broker has no right to any portion of the deposit money which was deposited by the purchaser, even though the commission is earned, and such deposit should be returned to the purchaser at once and the broker should look to the owner for compensation.
E-16. A broker receipting for security deposits shall not deliver such deposits to an owner without the tenant's written authorization in a lease or unless written notice has been given to the tenant by first class mail. Such notice must be given in a manner so that the tenant will know who is holding the security deposit and the specific requirements for the procedure in which the tenant may request return of the deposit. If a security deposit is delivered to an owner, the management agreement must place financial responsibility on the owner for its return, and in the event of a dispute over ownership of the deposit, must authorize disclosure by the broker to the tenant of the owner's true name and current mailing address. The broker shall not contract with the tenant to use the security deposit for the broker's own benefit.
E-17. Repealed (Effective June 30, 2004)
E-18. Fees from Mortgage Lenders Require Prior Written Approval A licensee shall not accept, directly or indirectly, a placement fee, commission or other valuable consideration for placing a loan with a mortgage lender or its representative in any real estate transaction in which the licensee, directly or indirectly, received, or is entitled to receive a commission as a result of the sale of property in such transaction unless the licensee fully informs any party with whom they have established a brokerage relationship, or worked with as a customer, and obtains prior written consent of such party. All licensees must comply with the RESPA statute and regulations regarding receipt of referral fees. To the extent Rule E-18 on referral fees differs from that of RESPA, licensees should comply with RESPA to avoid jeopardizing their standing with respect to federally related loan programs and are advised to contact the Consumer Financial Protection Bureau for further clarification. E-19. A licensee shall not accept a commission, fee, or other valuable consideration from an abstract or title insurance company or its representative in any real estate transaction in which the licensee, directly or indirectly, receives, or is entitled to receive, a real estate commission as a result of the sale of property in such transaction. (Statement of Basis and Purpose as adopted by the Real Estate Commission on October 5, 1988.)
E-20. The licensee shall not submit or advertise property without authority, and, in any offering, the price quoted should not be other than that agreed upon with the owners as the offering price. E-21. When a licensee has received written notification from the Commission that a complaint has been filed against the licensee, the licensee has been selected for an audit, or that an audit has identified record keeping or trust account deficiencies, such licensee shall submit a written answer to the Commission. Failure to submit a written answer within the time set by the Commission in its notification shall be grounds for disciplinary action unless the Commission has granted an extension of time for the answer in writing and regardless of the question of whether the underlying complaint warrants further investigation or subsequent action by the Commission. The licensee's written answer shall contain the following: (a.) A complete and specific answer to the factual recitations, allegations or averments made in the complaint filed against the licensee, whether made by a member of the public, on the Commission's own motion or by an authorized representative of the Commission. (b.) A complete and specific response to any additional questions, allegations or averments presented in the notification letter.
(c.) Any documents or records requested in the notification letter. (d.) Any further information relative to the complaint that the licensee believes to be relevant or material to the matters addressed in the notification letter. E-22. Inducements for settlement services prohibited Pursuant to 12-61-113.2, C.R.S and the Federal Real Estate Settlement and Procedures Act, 12 U.S.C. Sec. 2601 et. seq., a real estate broker, whether engaged in an affiliated business arrangement or not, shall not accept or give any incentive, disincentive, remuneration, commission, fee or other thing of value to or from a settlement service provider for the referral of business in a real estate transaction involving a federally related mortgage loan. Real estate brokers are allowed to pay a referral fee to another licensed real estate broker if reasonable cause exists as set forth in 12-61-203.5, C.R.S. nothing in this rule shall prohibit a person or entity from receiving a bona fide salary, commission or other compensation for services rendered or as a return on their ownership interest in an affiliated business. E-23. Payment to Out-Of-State Brokers A licensed Colorado broker who cooperates with a broker who is licensed in another state or country but is not licensed in Colorado may pay such out-of-state broker a finder’s fee or share of the commission under these circumstances:
(a) The broker licensed in the other state or country must reside and maintain an office in the other state or country. This rule shall also apply to payment made to citizens or residents of a country which does not license real estate brokers if the payee represents that they are in the business of selling real estate in said country.
(b) All advertising, negotiations, contracting and conveyancing done in Colorado must be performed in the name of the licensed Colorado broker.
(c) All money collected from the parties to the transaction prior to closing shall be deposited in the name of the licensed Colorado broker according to Commission rules. E-24. A real estate licensee who procures or attempts to procure a real estate license by fraud, misrepresentation, deceit or by making a material misstatement of fact in an application for such license, will be subject to disciplinary action pursuant to 12-61-113, C.R.S., as amended. E-25. Continuing Duty to Disclose Conflict of Interest and License Status When acting in a licensed capacity or when a licensee sells, buys or leases real property on the licensee’s own account, such licensee shall have a continuing duty to disclose any known conflict of interest that may arise in the course of the transaction. In addition, when a licensee sells, buys or leases real property on the licensee’s own account, such licensee shall disclose in the contracting instrument, or in a separate concurrent writing, that they are a licensed real estate broker.
A licensee acting as a property manager has a duty to disclose, in writing, any known conflict of interest that may arise in the selection or use of a business or vendor that provides services applicable to lease transactions, including property maintenance. The licensee is required to disclose any ownership, financial or familial interest associated with the selection or use of a particular business or vendor.
E-26. Repealed E-27. No licensee shall make misrepresentations regarding future availability or costs of services, utilities, character and/or use of real property for sale or lease of the surrounding area. E-28. REPEALED.
E-29. The terms “employment”, in the employ of”, “employed”, “employing”, “placed under contract”, or “engaged”, as used in the licensing statutes (12-61-101 C.R.S. et seq.) and Commission Rules, shall refer to any contractual relationship by or between a real estate broker and another licensee, which may be with or without limitation as to the time, place, or manner of performance of the licensee's activities, but which shall not relieve the real estate broker from the statutory requirement that the real estate broker shall exercise authority, direction and control over licensee's conformance to the licensing statutes and Commission Rules in the performance of such licensee's activities pursuant to 12-61-103 (6)(c)(I) C.R.S., 12-61-113 (1) (o) C.R.S., 12-61- 118 C.R.S., and Commission Rules. Whenever a complaint is filed with the Real Estate Commission against an employed licensee, the Commission shall cause an investigation to be made to ascertain whether there may have been a violation of 12-61-113(1)(o) C.R.S. by the employing real estate broker in failing to exercise a reasonable or high level of supervision over such licensee's activities with reference to the licensing statutes and Commission Rules. Such supervision, pursuant to 12-61-118 C.R.S. shall include all broker employees, including but not limited to secretaries, bookkeepers and personal assistants of licensed employees. E-30. To ensure compliance with commission statutes and rules regarding supervision, employing brokers shall have the following responsibilities:
(a) Maintain all trust accounts and trust account records;
(b) Maintain all transaction records;
(c) Develop an office policy manual and periodically review office policies with all employees;
(d) Provide for a high level of supervision of newly licensed persons pursuant to rule E-32;
(e) Provide for a reasonable level of supervision for experienced licensees pursuant to rule E-31;
(f) Take reasonable steps to ensure that violations of statutes, rules and office policies do not occur or reoccur;
(g) Provide for adequate supervision of all offices operated by the broker, whether managed by licensed or unlicensed persons.
E-31. Reasonable supervision Pursuant to section 12-61-113(1)(o), C.R.S., and in addition to the requirements of Commission Rule E-30 “reasonable supervision” of licensees with two or more years of experience shall include, but not be limited to, compliance with the following:
(a) Maintaining a written office policy describing the duties and responsibilities of licensees employed by the broker. A copy of the written policy shall:
(b) Reviewing all executed contracts in order to maintain assurance of competent preparation.
(c) Reviewing transaction files to ensure that required documents exist.
(d) Nothing in this rule shall prohibit an employing broker from delegating supervisory authority to other experienced licensees.
(a) Provide specific training in office policies and procedures;
(b) Be reasonably available for consultation;
(c) Provide assistance in preparing contracts;
(d) Monitor transactions from contracting to closing;
(e) Review documents in preparation for closing;
(f) Ensure that the employing broker or an experienced licensee attends closings or is available for assistance.
(g) Nothing in this rule shall prohibit an employing broker from delegating supervisory authority to other experienced licensees.
E-33. Following proper disclosure pursuant to 12-61-808 C.R.S., a broker engaged as a single agent for one party to a transaction may assist the other party by performing such ministerial tasks as showing a property, preparing and conveying written offers and counteroffers, making known the availability of financing alternatives and providing information related to professional, governmental and community services which will contribute to completion of the transaction and successful fulfillment of the agency. Performing such ministerial tasks shall not of themselves violate the terms of an agency relationship between a broker and a buyer, seller, tenant or landlord and shall not create an agency or transaction-broker relationship with the person being assisted.
E-34. Purchase Offers Must Go to Listing Broker A licensee must present all offers to purchase or lease to the owner’s listing broker only if such owner has a written unexpired contract in connection with the sale or lease of real property which grants to the owner’s listing broker an exclusive right to sell or lease. If a licensee has made reasonable, but unsuccessful, attempts to present an offer to purchase or lease to the owner’s listing broker, the licensee must present the offer to the listing broker’s employing broker or the employing broker’s designee. If no employing broker exists, or if reasonable attempts to present the offer to the employing broker have failed, the licensee may present the offer directly to the owner.
E-35. Written disclosures pursuant to C.R.S. 12-61-808 shall be made to a buyer or tenant prior to engaging in activities enumerated in C.R.S. 12-61-101 (2) and (3).
a. For purposes of this rule, such activities occur when a licensee elicits or accepts confidential information from a buyer or tenant concerning the buyer's or tenant's real estate needs, motivation, or financial qualifications.
b. Such activities do not include a bona fide “open house” showing, preliminary conversations or “small talk” concerning price range, location and property styles, or responding to general factual questions from a potential buyer or tenant concerning properties which have been advertised for sale or lease. E-36. Pursuant to 38-35-125, a real estate licensee who provides closing services shall not disburse funds or instruct an agent to disburse funds until those funds have been received and are either:
(1) available for immediate withdrawal as a matter of right from the financial institution in which the funds have been deposited or (2) available for immediate withdrawal as a consequence of an agreement of a financial institution in which the funds are to be deposited or a financial institution upon which the funds are to be drawn. Such agreement with a financial institution must be for the benefit of the licensee providing the closing service. If the agreement contains contingencies or reservations no disbursements can be made until these are satisfied. (Statement of Basis and Purpose as adopted by the Real Estate Commission on October 5, 1988.) E-37. There is no obligation for a licensee to prepare any legal documents as part of a real estate transaction. However, if a licensee or the licensee's agent prepares any legal document, the licensee or the licensee's agent may not charge a separate fee for preparation of such documents. A licensee shall not be responsible for fees charged for the preparation of legal documents where they are prepared by an attorney representing the purchaser or seller. Costs of closing not related to preparation of legal documents may be paid by the licensee or by any other person. A broker who closes transactions and charges separately for costs of closing not related to the preparation of legal documents must specify the costs and obtain the written consent of the parties to be charged.
E.38. Office Policy Contains Designation of Brokerage Relationship For purposes of this rule, seller shall include landlord and buyer shall include tenant. Pursuant to CRS 12-61-802(1.5), an employing broker or employed broker must be designated in writing by the employing broker to serve as a single agent or transaction-broker for the seller or buyer. Employing brokers comply with the statute if they make such written designation, as appropriate to the broker's business, in an office policy that states:
1. listing contracts by single individual: that the individual broker entering into the listing contract is the seller's designated agent or designated transaction-broker, whichever is appropriate.
2. right to buy or tenant contracts by individual: that the individual broker entering into the right to buy or tenant contract is the buyer's designated agent or transaction broker, whichever is appropriate.
3. listing contracts by teams: that the individual team member(s) entering into the listing contract is the seller's designated agent or transaction-broker, whichever is appropriate, in which case that designation and brokerage relationship shall apply to all members of the team.
4. right to buy or tenant contracts by teams: that the individual team member(s) entering into the right to buy or tenant contract is the buyer's designated agent or transaction- broker, whichever is appropriate, in which case that designation and brokerage relationship shall apply to all members of the team.
5. individuals or teams working with both buyer and seller:
6. substitute or additional brokers: that the employing broker reserves the right to substitute or add other designated brokers, as appropriate, which shall be disclosed to the buyer or seller.
7. transaction broker - written disclosure: that the broker working with a buyer or seller as a Transaction-Broker as a result of a written disclosure, is the designated broker for that buyer or seller.
E-39. Office brokerage relationship policy must be written Pursuant to 12-61-803 and 808 C.R.S., a broker shall adopt a written office policy which identifies and describes the relationships in which such broker and any employed licensee may engage with any seller, landlord, buyer or tenant as part of any real estate brokerage activities. A broker may adopt any policy suitable to the broker's business, subject to the following:
a. An office policy shall apply to all licensees in the office;
b. An office policy shall be given and explained to each licensee and shall be read, agreed to and signed by each licensee;
c. An office policy shall, in a manner compliant with Commission Rule E-38, identify the procedures for the designation of brokers who are to work with a seller, landlord, buyer or tenant pursuant to 12-61-803(6), C.R.S., except office policies of real estate brokerage firms that consist of only one licensed natural person.
d. An office policy shall identify and provide adequate means and procedures for the maintenance and protection of confidential information that:
e. An office policy may permit an employing broker to supervise a transaction and to participate in the same transaction as a designated broker. E-40. A broker shall not enter into a brokerage relationship with one party as an agent and the other party as a transaction broker. A broker who works with both the buyer and seller in the same real estate transaction may do so as (1) a Transaction-Broker for both buyer and seller (2) a single agent for the seller, treating the buyer as a customer or (3) a single agent for the buyer, treating the seller as a customer. These options shall be disclosed and made a part of the agreement between the parties to the listing contract, right to buy contract or tenant contract, whichever is appropriate.
E-41. Change of status disclosure in writing A broker working with both the buyer and seller in the same real estate transaction who changes from working as a party’s agent to assisting the parties as a Transaction-Broker shall either: check the box for “Transaction- Broker” and the box” This is a Change of Status” in the Commission-approved form, Contract to Buy and Sell Real Estate, if applicable, or provide the written “Change of Status (Transaction-Brokerage Disclosure)” to the party that has the changed relationship (seller and buyer) with the broker, at the time the broker begins to assist as a Transaction-Broker, but not later than at the time the party signs the contract. For purposes of this rule, seller shall include landlord, and buyer shall include tenant. E-42. Notice Required on CMA's or BPOS for Other Than Marketing When a real estate broker prepares a competitive market analysis (CMA) or a broker's price opinion (BPO) for any reason other than the anticipated sale or purchase of the property, the licensee must include a notice stating: “This evaluation was prepared by a licensed real estate broker and is not an appraisal. This evaluation cannot be used for the purposes of obtaining financing.” Pursuant to 12-61-702(5)(b)(II), C.R.S, brokers are prohibited from completing CMA’s or BPOS that are used for the purpose of obtaining financing. E-43. Square Footage Disclosure This rule applies to transactions involving the sale and purchase of residences, new or existing. It requires the listing licensee to disclose the square footage of the floor space of the living area of the residence to the buyer and seller when a licensee disseminates such information, including submission to a multiple listing service. If the licensee personally measures or provides information from another source of measurement of the residence's square footage the licensee shall use the Commission approved form for such disclosure. The licensee listing the property is responsible for accurately representing any source of square footage.
(a) Licensee measurement. A licensee is not required to measure the square footage of a property. If the licensee takes an actual measurement it does not have to be exact, however, the licensee’s objective must be to measure accurately and calculate competently in a manner that is not misleading, and:
(b) Other sources of square footage. If a buyer or seller is provided information from another source for square footage, that source (whether an actual measurement, building plans, prior appraisals, assessors office, etc.) shall include the date of issuance if any and must be disclosed to the buyer and seller in writing by the licensee, in a timely manner. Such disclosure must be on the Commission approved form and must advise the recipient to verify the information. A licensee may not provide information to a person from a source known to be unreliable and is responsible for indicating obvious mismeasurement by others.
(c) A licensee working with a buyer must advise that if exact square footage is a concern, the property should be independently measured. This requirement is fulfilled by the licensee supplying such buyer a copy of the Commission approved form for disclosing square footage.
E-44. Actions when license is suspended, revoked, expired or inactive Upon suspension, revocation, expiration or transfer to inactive status of a real estate license, the licensee is responsible for immediate compliance with the following:
(1) Cease any activities requiring a license.
(2) Return the license and pocket card to the commission. If an employing broker, inform all employed licensees of the change in license status and the effect of such change on the license status of those licensees.
(3) Cease all advertising, including but not limited to, use of office signs, yard signs, billboards, newspapers, magazines, the internet, direct mailings, and multiple listing services:.
(4) Inform all owners, buyers and tenants of the action taken and the impact that the change in license status will have on any pending transaction. It is the responsibility of the employing broker to ensure that another broker is designated to perform the duties requiring a license in all pending transactions, or to release the affected parties from any listing contract(s) with the real estate brokerage.
(5) If an independent broker:
(6) If an employing broker:
(7) Commissions or fees may be received by a licensee only for transactions where the commission or fee was earned prior to that licensee’s suspension, revocation, expiration or transfer to inactive status.
E-45. A designated broker shall be permitted to reveal to a supervising broker, and a supervising broker shall be permitted to receive, confidential information as authorized by the informed consent of the party the designated broker(s) is assisting or working with, without changing or extending the designated brokerage relationship beyond the designated broker. A supervising broker, for purposes of this rule, is a broker performing the responsibilities set forth in rules E-30, 31 and 32. Confidential information includes the information referenced in sections 12-61-804 (2); 805 (2) and 807 (3) C.R.S.
E-46. Affiliated Business Arrangement Disclosures Pursuant to 12-61-113.2(2)(b), C.R.S., a broker shall make the following disclosures:
1. Disclose in writing the existence of an affiliated business arrangement to the party they are referring at the time the referral is made. The disclosure shall be in a format consistent with the affiliated business arrangement disclosure promulgated by HUD pursuant to the Real Estate Settlement and Procedures Act.
2. At the time the contract to buy and sell is executed by the buyer and seller, the existence of an affiliated business arrangement with the broker or the employing broker shall be disclosed in writing to all parties to the transaction.
3. A broker is required to make the following disclosures to the Commission.
E-47. Competency On every occasion of engaging in the practice of real estate brokerage, a broker must determine whether he or she possesses the necessary experience, training, and knowledge to provide brokerage services and maintain compliance with the applicable federal, state and local laws, rules, regulations and ordinances. If the broker does not have the necessary experience, training, and knowledge, the broker must: decline to provide brokerage services; or obtain the necessary experience, training and knowledge; or obtain the assistance of their supervising broker or legal counsel, or co-list with another licensed broker who does have the necessary experience, training, and knowledge.
E.48. Prohibited Remedies for Compensation No licensee shall file a lien, a lis pendens or record a listing contract to secure the payment of a commission or other fee associated with real estate brokerage duties in a residential transaction. A licensee involved in a residential transaction shall not cause the title to a property to become clouded or otherwise interfere with the transfer of title when the licensee is not a principal in the transaction.
A broker, who has commercial real estate listed for sale and has provided licensed services that resulted in procuring a tenant who has leased any interest in the commercial real estate in accordance with the written agreement between the broker and the owner, may file a lien pursuant to 38-22.5-103, C.R.S. against the commercial real estate in the amount of the compensation set forth in the written agreement. If the commercial real property has been conveyed to a bona fide purchaser prior to the recording of the notice to lien as required by 38- 22.5-104, C.R.S., a broker may not file a lien for a commission that is due as the result of a lease renewal.
Commercial real estate is defined as any real property other than real property containing one to four residential units, single-family or multi-family residential units including condominiums, townhouses, or homes in a subdivision when such real estate is sold, leased, or otherwise conveyed on a unit-by-unit basis even though the units may be part of a larger building or parcel of real property containing more than four residential units. E-49. Immediate Notification of Conviction, Plea or Violation Required A licensee shall make written notification to the Commission within 30 calendar days of any of the following:
(a) A plea of guilty, a plea of nolo contendere or a conviction of any crime identified by 12- 61-113(1)(m), C.R.S.
(b) A violation or aiding and abetting in the violation of the Colorado or federal fair housing laws.
(c) Any disciplinary action taken against a licensee in any other jurisdiction, if the licensee's action(s) would constitute a violation of the real estate license law in Colorado.
(d) A suspension or revocation of a license, registration, or certification by Colorado or another state, within the last five years, for fraud, deceit, material misrepresentation, theft, or the breach of a fiduciary duty that denied the licensee the authorization to practice as a mortgage broker, a real estate broker or salesperson, a real estate appraiser, an insurance producer, an attorney, a securities broker-dealer, a securities sales representative, an investment advisor, or an investment advisor representative.
F. Use of Forms F-1. Standard forms Pursuant to section 12-61-803(4), C.R.S., a broker is authorized to 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 for which a real estate broker’s license is required and the broker is acting as a single agent or transaction broker. The broker’s use of standard forms must be appropriate for the transaction and the circumstances in which they are used. The broker must advise the parties that the standard forms have important legal consequences and that the parties should consult legal counsel before signing such forms. A standard form is:
A) Commission-Approved Forms. A form promulgated by the Real Estate Commission for current use by real estate brokers, i.e. a “Commission-Approved Form”. A broker must use a Commission-Approved Form when such a form exists and is appropriate for the transaction. The broker may also advise the parties as to the effects thereof. To obtain the forms promulgated by the Real Estate Commission, visit the Division of Real Estate’s website or the Division of Real Estate’s offices at 1560 Broadway, Denver, Colorado 80202;
B) Attorney Forms. A form drafted by a licensed Colorado attorney representing the broker, the employing broker, or the brokerage firm, provided a Commission-Approved Form does not exist or is not appropriate for the transaction. The form must contain the language “This form has not been approved by the Colorado Real Estate Commission” as well as the name of the attorney or law firm and the name of the broker, employing broker, or the brokerage firm for whom the form is prepared and may not be altered other than by completing any blank spaces in the form. The broker may also advise the parties as to the effects thereof;
C) Client Forms. A form provided by a party to the transaction if the broker is acting in the transaction as either a transaction broker or single agent for the party providing the form. The broker must retain written confirmation that the form was provided by said party to the transaction. A broker’s use of such form is limited to inserting transaction-specific information within the form;
D) Government and Lender Forms. A form prescribed by a governmental agency, a quasi- government agency, or a lender regulated by state or federal law, if use of the form is mandated by such agency or lender. A broker’s use of such form is limited to inserting transaction-specific information within the form;
E) Colorado Bar Association Forms. A form used with the written approval of the Colorado Bar Association or its successor organization and specifically designated for use by brokers in Colorado, provided a Commission-Approved Form does not exist or is not appropriate for the transaction. A broker must use the form within any guidelines or conditions specified by the Colorado Bar Association or its successor organization and may not be altered other than by completing any blank spaces in the form. A broker may not use any forms published or distributed by the Colorado Bar Association unless such form contains the following: “This form has been approved by the Colorado Bar Association for use by real estate brokers in Colorado in accordance with the guidelines provided with this form”. The broker may also advise the parties as to the effects thereof;
F) Disclosure Forms. A form used for disclosure purposes only, if the disclosure does not claim to waive or create any legal rights or obligations affecting any party to the transaction. The form must contain the language “This form has not been approved by the Colorado Real Estate Commission”. The broker may also advise the parties as to the effects thereof. The disclosure form may only provide information concerning:
G) Title Company Forms. A form prescribed and completed by a title company that is providing closing services in a transaction. The broker may also advise the parties as to the effects thereof;
H) Letters of Intent. 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. The form must contain the language that “This form has not been approved by the Colorado Real Estate Commission”. The broker may also advise the parties as to the effects thereof.
F-2. Commission-Approved Forms - permitted and prohibited modifications; form reproduction.
(A) For purposes of Rules F-2 through F-4, the term “Broker” also includes brokerage firm.
(B) A broker may add its firm name, trade name, address, telephone, e-mail, trademark or other identifying information on a Commission-Approved Form.
(C) A broker may add initial lines at the bottom of a page of any Commission-Approved Form.
(D) Any deletion or modification to the printed body of a Commission-Approved Form must result from negotiations or the instruction(s) of a party to the transaction. Any deletion must be made directly on the printed body of the form by striking through the deleted portion in a legible manner that does not obscure the deletion that has been made.
(E) Blank spaces on a Commission-Approved Form may be lengthened or shortened to accommodate the applicable data or information.
(F) Provisions that are inserted into blank spaces must be printed in a style or type that clearly differentiates such insertions from the style or type used for the Commission- Approved Form language.
(G) A broker may delete part or all of the following provisions of a Commission-approved “Contract to Buy and Sell Real Estate” (even if the provision is identified by a different section number), or corresponding provisions in other Commission-Approved Forms, if such provisions do not apply to the transaction. In the event any provision is deleted, the provision’s caption or heading must remain unaltered on the form followed by the words “omitted-not applicable”.
(H) A broker may add one or more additional pages to the “Contract to Buy and Sell Real Estate”, “Counterproposal” and the “Agreement to Amend/Extend Contract”, following such document, that contains the dates and deadlines information set forth in § 3, arranged in chronological date sequence.
(I) A broker may delete part or all of the following provisions of the “Counterproposal” and the “Agreement to Amend/Extend Contract” if such provisions do not apply to the transaction. In the event any provision is deleted, the provision’s caption or heading must remain unaltered on the form followed by the words “omitted-not applicable”.
(J) A broker may add signature lines and identifying labels for the parties signatures on a Commission-Approved Form.
(K) A broker may modify, strike or delete such language on a Commission-Approved Form as the Commission may from time to time authorize the language to be modified, stricken or deleted.
(L) A broker must explain all permitted modifications, deletions, omissions, insertions, additional provisions and addenda to the principal party and must recommend that the parties obtain expert advice as to the material matters that are beyond the expertise of the broker.
(M) Commission-Approved Forms used by a broker, including permitted modification made by a broker, must be legible.
(N) Brokers generating Commission-Approved Forms in an electronic format must ensure that the forms are protected so as to prevent inadvertent changes or prohibited modifications of Commission-Approved Forms by the broker or recipient. F-3. Additional Provisions (A) Any “Additional Provision” which by its terms serves to delete or modify portions of a standard form, must result from negotiations or the instruction(s) of a party to the transaction.
(B) A broker who uses a transaction-specific clause or clauses drafted by the broker’s licensed Colorado attorney must ensure that the broker understands the clause, and the clause is used and completed appropriately. The broker must retain the clause(s) prepared by the broker’s licensed Colorado attorney for four (4) years from the date that the clause was last used by the broker. The broker must provide those clause(s) and the name of the licensed Colorado attorney or law firm that prepared the clause(s) upon request by the Commission.
F-4. Prohibited Provisions (A) No contract provision, including modifications OR ADDITIONAL PROVISIONS permitted by Rules F-2 and F-3, will relieve a broker from compliance with the real estate license law, section 12-61-101, C.R.S., et. seq., or the Rules of the Commission.
(B) A broker who is not a principal party to the contract may not have personal provisions, personal disclaimers or exculpatory language in favor of the broker inserted into a standard form. A broker may, at the direction of a principal party, include language regarding payment of the broker’s or brokerage’s commission if this is a term of negotiation between the principal parties of the contract to buy and sell. F-5. Repealed (effective November 30, 2017).
F-6. Repealed (effective November 30, 2017).
F-7. Repealed (effective November 30, 2017).
G. Brokers Acting Under 12-61-101(2)(a)(X), C.R.S. (Rental Referrals) G-1. Repealed (1-6-00)
(a) The funds may be withdrawn from the trust fund account at any time for the purpose of returning the funds to the payor thereof in accordance with the terms of the contract or receipt.
(b) The funds may be withdrawn from the trust or escrow fund account when and if the broker reasonably believes the evidence available that said tenant has obtained a rental through information supplied by or on behalf of the broker. G-2. Receipt for advance fees Pursuant to 12-61-113(1.5), C.R.S., every person licensed acting under 12-61-101(2)(a)(X), C.R.S. shall give a prospective tenant a contract or receipt. At the time of acceptance of an advance fee from a prospective tenant, a broker shall provide the prospective tenant with a written contract or receipt which shall include at least the following:
(a) Name, business address and telephone number of the brokerage company.
(b) Acknowledgement of receipt of advance fee.
(c) A description of the services to be performed by the broker, including significant conditions, restrictions and limitations where applicable, and hours of operation.
(d) The prospective tenant’s specifications for the rental property, including but not limited to:
(e) Contract expiration date.
(f) Date of execution.
(g) Signatures of the prospective tenant, the broker, and if negotiated by a licensee in the employ of a broker, then the employed licensee shall sign on behalf of the employing broker.
(h) The address and the phone number of the Real Estate Commission in prominent letters.
(i) A statement that the regulation of rental location services is under the jurisdiction of the Real Estate Commission.
(j) Recital in bold face and capitals that:
(a) The date the addresses were furnished to the prospective tenant.
(b) The type of unit, e.g., detached single family residence, apartment, duplex, condominium, mobile home, etc.
(c) Whether the unit is furnished or unfurnished.
(d) The date when the unit will be available for occupancy.
(e) The date when the unit was most recently entered on the agency's listing records.
(f) The date when the housing accommodation was last verified by the agency to be available for rent.
(g) The address and municipality of the housing accommodation.
(h) The name and address of the property owner or their authorized agent and the telephone number, if available.
(i) The monthly rent required by the landlord.
(j) The number of bedrooms and total number of rooms.
(k) Whether a written lease is required and, if so, the minimum lease term required by the landlord.
(l) Any lawful restrictions as to pets, children, furnishings, occupants or activities imposed by the landlord.
G-4. Repealed effective 1-1-97 G-5. Where addresses are furnished to the prospective tenant by telephone or any other manner not requiring the prospective tenant's presence at the broker's office, the addresses shall be noted on the broker's copy of the list. The list shall indicate by which broker or employee of the broker the addresses were furnished and the broker's copy shall be retained for a period of one year. G-6. Advertising Each broker engaged in locating or assisting in locating rental properties for an advance fee shall abide by the following regulations regarding advertising practices:
(a) Licensee shall make written registries, posted in a conspicuous place or otherwise disclosed to fee payers, of all advertisements or other publications published or caused to be published by the broker, together with address of each property advertised, the name of the party who offered the property for rent and his or her telephone, if any.
(b) No property shall be advertised which has not been verified for availability four business days or less before said advertisement shall be printed.
(c) Each property advertised for rent or lease through the use of any media form shall be assigned a code (and one code only) in accordance with a uniform coding system adopted by the broker, which code shall also appear in any media advertising placed by said broker. Coding of municipalities shall be included within the uniform system so as to be accurately reflected in media advertising.
(d) A copy of all advertising submitted to any media group for publication (including television, radio, newspaper and mimeographed sheets), together with the name of the person submitting the same, shall be maintained by a broker for a period of one year after publication.
(e) No licensee acting under 12-61-101(2)(a)(X), C.R.S. shall advertise or furnish a prospective tenant with the address of a prospective rental unless such licensee has received specific authorization to list said property from the owner or owner’s authorized agent. Specific authorization may be by writing, signed by the owner or owner’s agent, or orally, if the broker notes the name of the owner or owner’s agent, the date of authorization, and the telephone number of the person so authorizing.
G-7. Grounds for finding unworthiness or incompetence Pursuant to 12-61-113(1)(n), C.R.S., a licensee acting under 12-61-101(2)(a)(X), C.R.S. shall be considered unworthy or incompetent in the conduct of their business where:
(a) The licensee violates Rule G-6.
(b) With particular respect to media advertising:
(1) The property is not actually located in the area represented.
(2) The rental price shown is less than that asked by the owner of the available property.
(3) The property is non-existent or cannot be verified as currently for rent by the licensee.
(4) The specifics of the property advertised differ materially from the property as it exists.
(5) A property is advertised in such a way or under such a heading as to indicate the property is of a different type than it actually is. The word “type” refers to such designations as: single family detached residence, duplex, apartment, condominium, townhouse, or mobile home.
(c) The licensee fails or refuses to abide by the terms of the contract or receipt between himself and a prospective purchaser.
(d) The broker fails or refuses to refund money pursuant to the terms of the contract or receipt.
(e) The broker has failed to keep accurate records as specified in these rules or has failed to retain said records for the prescribed time periods.
Rules H-1 Through H-26. Repealed.
I. Declaratory Orders.
1. Any person*1 may petition the Commission for a declaratory order to terminate controversies or to remove uncertainties as to the applicability to the petitioner of any statutory provision or of any rule or order of the Commission.
*1 refers to existing definition of “person” in APA, rule or statute, if any.
2. The Commission will determine, in its discretion and without prior notice to the petitioner, whether to rule upon any such petition. If the Commission determines it will not rule upon such a petition, the Commission shall issue its written order disposing of the same, stating therein its reasons for such action. A copy of such order shall forthwith be transmitted to the petitioner.
3. In determining whether to rule upon a petition filed pursuant to this rule, the Commission will consider the following matters, among others:
(a) whether a ruling on the petition will terminate a controversy or remove uncertainties as to the applicability to petitioner of any statutory provision or rule or order of the Commission;
(b) whether the petition involves any subject, question or issue which is the subject of a formal or informal matter or investigation currently pending before the Commission or a court involving one or more of the petitioners which will terminate the controversy or remove the uncertainties as to the applicability to the petitioner of any statutory provision or of any rule or order of the Commission, which matter or investigation shall be specified by the Commission;
(c) whether the petition involves any subject, question or issue which is the subject of a formal matter or investigation currently pending before the Commission or a court but not involving any petitioner which will terminate the controversy or remove the uncertainties as to the applicability to the petitioner of any statutory provision or of any rule or order of the Commission, which matter or investigation shall be specified by the Commission and in which petitioner may intervene;
(d) whether the petition seeks a ruling on a moot or hypothetical question and will result in merely an advisory ruling or opinion;
(e) whether the petitioner has some other adequate legal remedy, other than an action for declaratory relief pursuant to rule 57, Colo. R. Civ. P., which will terminate the controversy or remove any uncertainty as to the applicability to the petitioner of the statute, rule or order in question.
4. Any petition filed pursuant to this rule shall set forth the following:
(a) the name and address of the petitioner and whether the petitioner is licensed pursuant to C.R.S. 1973, 12-61-101, et seq.
(b) the statute, rule or order to which the petition relates;
(c) a concise statement of all the facts necessary to show the nature of the controversy or uncertainty and the manner in which the statute, rule or order in question applies or potentially applies to the petitioner.
5. If the Commission determines that it will rule on the petition, the following procedures shall apply:
(a) the Commission may rule upon the petition based solely upon the facts presented in the petition. In such a case:
(b) The Commission may, in its discretion, set the petition for hearing, upon due notice to the petitioner, for the purpose of obtaining additional facts or information or to determine the truth of any fact set forth in the petition or to hear oral argument on the petition. Notice to the petitioner setting such hearing shall set forth, to the extent known, the factual or other matters into which the Commission intends to inquire. For the purpose of such a hearing, to the extent necessary, the petitioner shall have the burden of proving ail of the facts stated in the petition, all of the facts necessary to show the nature of the controversy or uncertainty and the manner in which the statute, rule or order in question applies or potentially applies to petitioner and any other facts the petitioner desires the Commission to consider.
6. The parties to any proceeding pursuant to this rule shall be the Commission and the petitioner. Any other person may seek leave of the Commission to intervene in such a proceeding, and leave to intervene will be granted at the sole discretion of the Commission. A petition to intervene shall set forth the same matters as required by section 4 of this rule. Any reference to a “petitioner” in this rule also refers to any person who has been granted leave to intervene by the Commission.
7. Any declaratory order or other order disposing of a petition pursuant to this rule shall constitute agency action subject to judicial review pursuant to C.R.S. 1973, 21-4-106. *1 refers to existing definition of “person” in APA, rule or statute, if any.
J. Repealed K. Exceptions and Commission Review of Initial Decisions K-1.
1. All Designations of Record, Requests, Exceptions and Responsive Pleadings (“Pleadings”) must be in written form, mailed with a certificate of mailing to the Commission.
2. All Pleadings must be filed with the Commission by 5:00 p.m. on the date the filing is due. These rules do not provide for any additional time for service by mail. Filing is in receipt of a pleading by the Commission.
3. Any Pleadings must be served on the opposing party by mail or by hand delivery on the date which the Pleading is filed with the Commission.
4. All Pleadings must be filed with the Commission and not with the Office of Administrative Courts. Any Designations of Record, Requests, Exceptions or Responsive Pleadings filed in error with the Office of Administrative Courts will not be considered. The Commission’s address is:
1. The Commission hereby preserves the Commission’s option to initiate a review of an initial decision on its own motion pursuant to § 24-4-105(14)(a)(II) and (b)(III), C.R.S. outside of the thirty day period after service of the initial decision upon the parties without requiring a vote for each case.
2. This option to review shall apply regardless of whether a party files exceptions to the initial decision.
K-3.
1. Any party seeking to reverse or modify the initial decision of the administrative law judge shall file with the Commission a designation of the relevant parts of the record for review (“Designation of Record”). Designations of Record must be filed with the Commission within twenty days of the date on which the Commission mails the initial decision to the parties’ address of record with the Commission.
2. Even if no party files a Designation of Record, the record shall include the following:
3. Transcripts: Transcripts will not be deemed part of a Designation of Record unless specifically identified and ordered. Should a party wish to designate a transcript or portion thereof, the following procedures will apply:
K-4.
1. Any party wishing to file exceptions shall adhere to the following timelines:
2. Either party may file a responsive pleading to the other party’s exceptions. All responsive pleadings shall be filed within ten days of the date on which the exceptions were filed with the Commission. No other pleadings will be considered except for good cause shown.
3. The Commission may in its sole discretion grant an extension of time to file exceptions or responsive pleadings, or may delegate the discretion to grant such an extension of time to the Commission’s designee.
K-5.
1. All requests for oral argument must be in writing and filed by the deadline for responsive pleadings.
2. It is within the sole discretion of the Commission to grant or deny a request for oral argument. If oral argument is granted, both parties shall have the opportunity to participate.
3. Each side shall be permitted ten minutes of oral argument unless such time is extended by the Commission or its designee.
S. [Repealed eff. 01/30/2015] _________________________________________________________________________ Editor’s Notes History Rules F-1, F-7 eff. 10/30/2007.
Rule F-7 eff. 11/30/2007.
Rule F-7 emer. rule eff. 01/08/2008.
Rule F-7 emer. rule eff. 03/04/2008.
Rules B-6, B-7, B-9, F-7 eff. 05/01/2008.
Rules B-6, B-7 emer. rules eff. 05/06/2008.
Rules B-6, B-7 eff. 07/30/2008.
Rule B-2 emer. rule eff. 08/05/2008.
Rules A-14, B-2, E-48, E-49, F-7, K-1, K-2, K-3, K-4, K-5 eff. 10/30/2008. Rule F-7 emer. rule eff. 11/04/2008.
Rule A-15 emer. rule eff. 12/02/2008.
Rule F-7 emer. rule eff. 01/06/2009.
Rule F-7 eff. 01/30/2009.
Rule A-15 eff. 03/02/2009.
Rule F-7 eff. 03/30/2009.
Rules E-4, E-43 eff. 04/30/2009.
Rule F-7 emer. rule eff. 06/02/2009.
Rule F-7 emer. rule eff. 07/22/2009.
Rule F-7 eff. 07/31/2009.
Rule F-1 eff. 08/30/2009.
Rule F-7 emer. rule eff. 09/01/2009.
Rules F-1, F-7 eff. 10/30/2009.
Rules A-15, E-48 emer. rules eff. 08/03/2010.
Rules A-15, B-2, B-6, B-7, B-11, E-48 eff. 09/30/2010.
Rules F-1, F-3, F-7 eff. 01/01/2011.
Rules B-2, F-7 eff. 11/30/2011.
Rules A-2, A-5, A-8, A-11, A-16, B-1, B-3, B-8, B-11, C-3, C-14, C-18, C-23, C-24, C-25, D-5, D-6, D-11, D-13, F-1 eff. 01/30/2012.
Rules E-1, E-18, E-23, E-25, E-34, E-42, E-44, E-48, E-49, G-2, G-6, G-7 eff. 03/30/2012. Rules D-15, D-16 repealed eff. 03/30/2012.
Rules D-14, E-22, E-46 eff. 07/30/2012. Rule E-28 repealed eff. 07/30/2012. Rule E-1 eff. 11/30/2012.
Rule B-2 eff. 01/01/2013.
Rule E-44 eff. 11/30/2013.
Rule D-14 eff. 09/30/2014.
Rule E-8 eff. 01/30/2015. Rules C-19, S repealed eff. 01/30/2015. Rules F-1, F-2 eff. 05/30/2016.
Rule F-3 eff. 07/30/2016.
Rule E-47 eff. 01/30/2017.
Rules B-1, B-2, D-11, D-13, D-17, F-1 – F-4 eff. 11/30/2017. Rules F-5 – F-7 repealed eff. 11/30/2017. Rule B-2 eff. 07/30/2018.
Annotations Rule A-15. (adopted 01/06/2009) was not extended by Senate Bill 10-060 and therefore expired 05/15/2010.