In 2017 the Colorado General Assembly passed a law about the qualifications of real estate brokers and the use of real estate forms by brokers and property managers.
Senate Bill 17-215, titled “Sunset Licensed Real Estate Brokers & Subdivision Developers,” passed on March 27, 2017, continues the Division of Real Estate, the Real Estate Commission (“REC”) and the regulation of real estate brokers until 2026.
Of interest to our property management clients and real estate brokerage firms, beginning January 1, 2019, a broker may not act as an employing broker “without first demonstrating . . . experience and knowledge sufficient to enable the broker to employ and adequately supervise other brokers.”
The bill directs the REC to establish rules creating a method by which a broker may establish this “experience and knowledge.” One way will be to document a specified number of transactions that a broker has completed.
The bill changes licensing renewal dates to December 31st of every third year after issuance, rather than on the anniversary date. It also amends the current provisions on referral fees to conform to the requirements of federal law (The “Real Estate Settlement Procedures Act of 1974”).
If you're wondering how this law will affect you, give us a call.