itle. (1) Notwithstanding any provision of this title 38 to the contrary, at any time after a unit owners' association files an action for foreclosure of the unit association lien on a unit, but prior to the sale date at auction, the unit owner or the unit owner's designated representative may file a motion with the court to stay the sale of the unit with notice of the unit owner's intent to list the unit for sale for the fair market value of the unit or an alternate amount as specified in subsection (2) of this section. The unit owner or the unit owner's designated representative shall provide notice of the motion to stay the sale to the association and to the officer.

1. (2)

   1. (a) The unit owner shall state in the motion to stay:

      1. (I) The fair market value of the unit, as determined by:

         1. (A) An appraisal of the unit;
         2. (B) A market analysis conducted by a licensed real estate agent;
         3. (C) An estimate from an online real estate marketplace company; or
         4. (D) The assessed value of the unit recorded in the county assessor's property tax records on the date of the court's order to sell the unit;
      2. (II) An alternate value for the unit that, if less than the fair market value of the unit, exceeds the sum of all liens and any fees or costs advanced by the holder of the evidence of debt.
   2. (b) The court may allow the unit owner additional time to submit the fair market value or alternate value to the court.
   3. (c) The unit owner shall list the unit at the sale price specified in the motion to stay, unless the association objects to the unit owner's declared fair market value or alternate value of the unit. The association may submit evidence of the unit's value to the court. Based on the evidence, the court shall set the initial list price of the unit and may further order a change to the list price if supported by sufficient evidence.
2. (3) The court's order staying the sale of the unit at auction is in effect for nine months after the date of the order. The court may extend the stay of the sale of the unit at auction beyond nine months upon evidence that the sale of the unit is imminent or for good cause, as determined by the court.
3. (4) If a sale date was scheduled, the officer shall post or provide notice of the continuance of the sale while the stay is in effect.
4. (5) The court shall enter any orders necessary to ensure that the proceeds of the sale of the unit are held in escrow and distributed by the court in accordance with lien priority and other applicable law.
5. (6) A purchaser of a unit listed for sale pursuant to this section shall take title to the unit free and clear of any encumbrances relating to filing of the foreclosure action.
6. (7) This section does not apply to an action for foreclosure of a time share unit, as defined in section 38-33-110 (7).

Source: L. 2025: Entire section added, (HB 25-1043), ch. 433, p. 2503, § 6, effective October 1.

Editor's note: Section 7(2) of chapter 433 (HB 25-1043), Session Laws of Colorado 2025, provides that the act adding this section applies to enforcement actions instituted on or after October 1, 2025.