The Division of Real Estate provides consumer protection through their enforcement of Colorado License Law and regulation of licensees. However, there are many other areas of real estate law, over which the Division of Real Estate has no jurisdiction, that can factor into the standard real estate transaction.
Working With a Real Estate Broker
Q: What are the different ways that I can work with a real estate agent?
A: Colorado real estate agents may work with consumers as a Seller's Agent, a Buyer's Agent, a Transaction Broker, or as a customer. The description of the broker's duties when acting in each capacity are described in the "Definitions of Working Relationships"
Q: How can I terminate listing agreement with my broker?
A: Both the Exclusive Right to Sell and Exclusive Right to Buy listing contracts identify the consumer's right to cancel the listing contract in the event of Broker default. However, the Division of Real Estate does not determine if a Broker has defaulted under the terms of the listing contract or the enforceability of any contract between a consumer and broker. Consumers are advised to seek legal counsel to discuss their legal options.
Q: How can I terminate the agency agreement with my broker?
A: Both the Exclusive Right to Sell Listing Contract and the Exclusive Right to Buy Listing Contract contain provisions that outline the circumstances under which both the real estate broker and consumer can cancel the listing contract. The Division of Real Estate does not determine if either party has the right to cancel. The rights of either party to cancel are matters of contract law and must be handled through civil means.
Q: How do I know if a real estate broker has received any complaints?
A: Division of Real Estate staff can not verify any previous or existing complaints related to a licensee unless an investigation has been completed and the resulting discipline included the sanction of "Public Censure". If a licensee has received "Public Censure", that will be noted in their disciplinary history accessible by our licensee look-up/broker search.
Q: What is the standard commission when working with a real estate broker?
A: Real estate commissions are not standardized or regulated by the Division of Real Estate. Brokers and consumers are free to negotiated different commissions, including flat fees, specific to each individual real estate transaction.
Working With a Mortgage Loan Originator
Q: Who has jurisdiction over federally-regulated banks and credit unions?
A: The Consumer Financial Protection Bureau is the regulating agency for these entities.
Q: Can the Division of Real Estate assist me with issues involving my lender or servicer?
A: The Division does not have jurisdiction over lenders and servicers. They are regulated on a national level by the Consumer Financial Protection Bureau. Additionally, The Colorado Office of the Attorney General regulates some lenders. You can check with them to see if they have jurisdiction over your lender.
Working With a Real Estate Appraiser
Q: How can I find an appraiser?
A: The Division cannot recommend a specific appraiser. However, you can check for listings in the phone book, or do an online search for Colorado Appraisers. Additionally, many appraiser associations maintain an online roster of their members. These associations can be located by doing an online search for Colorado Appraiser Associations.
Q: Do I have the right to receive a copy of my home appraisal?
A: It depends. The requirements for lenders to provide a copy of an appraisal are summarized in "this FAQ from the Consumer Financial Protection Bureau"
Q: How can I resolve issues with my appraisal?
A: Check with your lender or the Appraisal Management Company (AMC) that ordered the appraisal to see if they have a Dispute Resolution Process that you can go through.
Q: Can I talk with the appraiser or give them information I think will be helpful for them when they do the appraisal?
A: The "Dodd-Frank Act", Section 1472(C) states that any person with an interest in a real estate transaction on the principal dwelling of the consumer is not prohibited from asking an appraiser to consider additional property information, to provide explanations, or to correct errors. You may be required to use an intermediary, such as the appraiser's client or an Appraisal Management Company, to communicate with the appraiser.
Q: The appraiser killed the deal. What can I do?
A: It is not a violation of license law for the appraised value to be lower, higher, or the same as the contract price. You can check to see if the lender or Appraisal Management Company has a Dispute Resolution Process through which you may be able to contest the appraisal. If you believe errors made during the development or reporting of the appraisal, you can "file a complaint with the Division", after which an investigator will examine the appraisal for compliance with appraiser license law.
Q: The appraiser charged a high fee and was late delivering the appraisal. What can I do?
A: An appraiser's fees and schedule are not regulated. Fees are generally determined by the market (supply and demand for appraiser's services) and the complexity of the assignment. You can check with the lender or Appraisal Management Company to see if they have a Dispute Resolution Process, or seek legal advice.
Property Management / Renters
Q: Is a real estate license required to do property management?
A: A real estate license is required if the activity conducted falls within the definition of a Real Estate Broker as defined in C.R.S. 12-10-201(6)(a). "§ 12-10-201, C.R.S. Definitions"
Q: Do licensed brokers who do property management need trust/escrow accounts?
A: If a broker deposits money belonging to others as defined in the Commission Rule E-1(f), it must be held in a trust/escrow account as defined in Commission Rule E-1 and handled as prescribed in Commission Rule E-1(a-e). "Trust accounts; requirements and purposes"