Chapter 2 - Commission Rules & Regulations
Chapter 2 - Commission Rules & Regulations
An * in the left margin indicates a change in the statute, rule, or text since the last publication of the manual.
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 as defined pursuant to section
38-22.5-102(2), C.R.S.
1.12. Commission: The Colorado Real Estate Commission as defined pursuant to section 12-10-
201(1), C.R.S.
1.13. Consumer: A member of the public that has sought or is seeking to engage Real Estate
Brokerage Services provided by a Broker. A Consumer is a buyer, seller, tenant, or landlord, as
applicable.
1.14. Customer: Has the same meaning pursuant to section 12-10-402(2), C.R.S.
1.15. Deemed Complete: An Applicant has submitted a complete and satisfactory application in
compliance with sections 12-10-202 and 12-10-203, C.R.S. that includes the Fee and the
accompanying required documentation as set forth in Chapters 2 and 3 of these Rules.
1.16. Designated Broker: Has the same meaning pursuant to section 12-10-402(3), C.R.S.
1.17. Director: The Director of the Division as defined pursuant to section 12-10-101(1), C.R.S.
1.18. Distance Learning: Education courses offered outside the traditional classroom setting in which
the instructor and learner are separated by distance and/or time.
1.19. Division: The Division of Real Estate as defined pursuant to section 12-10-101(2), C.R.S.
1.20. Duplicate: A legible photocopy, carbon copy, facsimile, or electronic copies which contain a
digital or electronic signature as defined pursuant to section 24-71-101(1), C.R.S.
1.21. Electronic Media: The method of communicating information that are in an electronic format
rather than a paper format. Electronic Media may include, but is not limited to, websites,
electronic mailings, social Media such as Twitter and Facebook, banner advertisements, and
YouTube.
1.22. Electronic Record: A record generated, communicated, received, or stored by electronic means
as defined to pursuant to section 24-71.3-102(7), C.R.S.
1.23. Employing Broker: Has the same meaning pursuant to section 12-10-201(2), C.R.S.
1.24. Expired: A License that was not renewed prior to the last day of the license cycle and is no
longer valid for a person or entity to perform any Real Estate Brokerage Services. Such persons
cannot hold themselves out to the public as Brokers and such entities cannot Advertise as
Brokerage Firms.
1.25. Fee: The prescribed non-refundable fee as set by the Division.
1.26. Initial License or Initial Licensure: The first license granted by the Commission to an Applicant
pursuant to sections 12-10-202 and 12-10-203, C.R.S.
1.27. Inactive: A Broker who holds a valid License shown in the Commission’s records as being
Inactive is not permitted to engage in Real Estate Brokerage Services. To maintain licensure on
Inactive status, a Broker must still continue to renew their License as set forth in Chapter 3 of
these Rules.
1.28. Independent Broker: A Broker either holding an Independent Broker level license or
Employing Broker level license acting as their own Brokerage Firm or sole proprietor and not
employing or supervising any Associate Brokers.
1.29. Invalid Payment: If the Fees accompanying any application including Fees for the recovery
fund, renewals and transfers made to the Division are paid for by check and the check is not
immediately paid upon presentment to the bank upon which the check was drawn, or if
payment is submitted in any other manner, and payment is denied, rescinded or returned as
invalid, the application will be immediately canceled. The application will only be reinstated if
the Division has received valid payment of all application Fees together with any fees incurred
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by the Division including the fee required by state fiscal rules for clerical services necessary for
reinstatement.
1.30. Jurisdiction: For purposes of Chapter 2 of these Rules, all 50 states, the District of Columbia,
Guam, Puerto Rico, and the U.S. Virgin Islands.
1.31. License: A Broker’s or Brokerage Firm’s license issued by the Commission pursuant to section
12-10-203, C.R.S.
* 1.32. Listing Contract: An agreement between a Brokerage Firm and a Consumer in which a Broker
licensed with the Brokerage Firm is designated to provide Real Estate Brokerage Services to
the Consumer. Listing Agreements include: Exclusive Tenant Contract, Exclusive Right to Sell,
Exclusive Right to Lease, Exclusive Right to Buy, and Management Agreements.
1.33. Management Agreement: An agreement between a Brokerage Firm and an owner of a property
in which a Broker licensed with the Brokerage Firm is designated to provide Property
Management Services on behalf of the owner.
1.34. Money Belonging to Others: Money Belonging to Others which is accepted by the Broker or
Brokerage Firm for deposit in the Broker’s or Brokerage Firm’s Trust or Escrow Account that
includes, but is not limited to, money received in connection with Management Agreements,
partnerships, limited liability companies, syndications, lease agreements, advance fee contracts,
guest deposits for short term rentals, rental receipts, security deposits, earnest money deposits,
or Money Belonging to Others received for any other purpose.
1.35. New Associate Broker: An Associate Broker with less than two (2) years of accumulative
Active experience.
1.36. Office Policy Manual: The Manual required for all Employing Brokers or the Employing
Broker’s Brokerage Firm, which contains certain policies and procedures.
1.37. Petitioner: For the purposes of implementing the provisions of Chapter 8 of these Rules, any
person who has filed with the Commission a petition or has been granted leave to intervene by
the Commission for a declaratory order pursuant to section 24-4-105(11), C.R.S. and as set
forth in Chapter 8 of these Rules.
1.38. Property Management: An on-going relationship between a Brokerage Firm and an owner of a
property in which the Brokerage Firm is designated to provide Property Management Services.
1.39. Property Management Services: The activities performed in leasing and subsequent
management of a property on behalf of an owner that are pursuant to section 12-10-201(6),
C.R.S. and further described in the Management Agreement.
1.40. Real Estate Brokerage Services: Any of the activities pursuant to section 12-10-201(6)(a),
C.R.S. when performed on behalf of a Consumer.
1.41. Real Estate Licensing Examination: An examination that consists of two (2) parts; a national
part and a Colorado part as set forth in Rule 2.2.
1.42. Real Estate School: Has the same meaning pursuant to section 23-64-103(20), C.R.S.
1.43. RESPA – The Real Estate Settlement Procedures Act of 1974, set forth in 12 U.S.C. 2601, et.
seq. (Act), effective June 1, 2018, incorporated by reference in compliance with section 24-4-
103(12.5), C.R.S. and does not include any later amendments or editions to the Act. A certified
copy of the Act is readily available for public inspection at the Office of the Colorado Real
Estate Commission at 1560 Broadway, Suite 925, Denver, Colorado. The Act may also be
examined at the internet website of the Consumer Bureau of Financial Protection (CFPB) at
www.consumerfinance.gov. The CFPB may also be contacted at 1700 G. Street, NW,
Washington, D.C. 20552 or by telephone at (202) 435-7000.
1.44. Recognized Depository: Any bank, savings and loan association, or credit union that accepts
deposits or shares insured by the Federal Deposit Insurance Corporation (FDIC) or the National
Credit Union Administration (NCUA) respectively.
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1.45. Reinstatement or Reinstating or Reinstate: Has the same meaning pursuant to section 12-10-
212(4)(a)(III), C.R.S.
1.46. Single Agent: Has the same meaning pursuant to section 12-10-402(6), C.R.S.
1.47. Standard Form: Has the meaning pursuant to section 12-10-403(4), C.R.S. and also as set forth
in Rule 7.1.
1.48. Supervisory Broker: A Broker, such as a managing broker, team lead, office manager, etc., who
has been delegated in writing by an Employing Broker to assume some of the Employing
Broker’s duties and responsibilities as set forth in Rule 6.3.
1.49. Team: Two (2) or more Brokers within a Brokerage Firm that cooperate on an on-going basis to
conduct a substantial portion of their Real Estate Brokerage Services together.
1.50. Temporary License: Has the same meaning pursuant to section 12-10-203(6)(c), C.R.S.
1.51. Things of Value: Monetary considerations as well as the exchange of tangible, non-monetary
assets.
1.52. Trademark: Any logo, service mark, or other identifying mark used in conjunction with a
Brokerage Firm’s legal name or Trade Name. Trademarks may be registered with the Colorado
Secretary of State pursuant to section 7-70-102, C.R.S. As an example, the brokerage “A Better
Choice Real Estate” uses a logo bearing the initials “ABC”. The logo is used to identify the
Brokerage Firm and the Real Estate Brokerage Services that it provides to Consumers;
therefore, it would be the trademark for the Brokerage Firm.
1.53. Trade Name: The name under which a Brokerage Firm does business other than the Brokerage
Firm’s legal name. Any Trade Name used by a Brokerage Firm must be on file with the
Commission and must be filed with the Colorado Secretary of State pursuant to section 7-71-
101, C.R.S. For example, a Brokerage Firm is licensed with the Commission under its legal
name of “Colorado Real Estate Group LLC”. However, the Brokerage is also a franchise of
“International Realty” and does business under the Trade Name “International Realty of
Colorado”.
1.54. Transaction-Broker: Has the same meaning pursuant to section 12-10-402(8), C.R.S.
1.55. Transition Period: The two-year licensing period plus a partial year commencing on the
anniversary date when a Broker’s license expires in the years of 2018, 2019, or 2020 and
expiring two (2) 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 (3) years or as short as two (2) years and one day.
1.56. Trust or Escrow Account: Any checking, demand, passbook or statement account, which has, at
a minimum, the following elements:
A. The account is separate and contains only Money Belonging to Others;
B. The account is custodial and fiduciary;
C. All funds are available on demand; and
D. The account is held with a Recognized Depository.
1.57. Trust or Escrow Accounting Equation: The reconciled trust or escrow bank account cash
balance must equal the sum total of the individual ledger balance for each owner at any given
point in time.
1.58. Unlicensed On-Site Manager: An unlicensed person who fills in blanks, as a scrivener, on lease
forms, shows prospective tenants available units, quotes rental prices established by the owner
or Broker, arranges for maintenance, and collects monies, including security deposits and rents.
A Brokerage Firm which employs an Unlicensed On-Site Manager must do so either as a
regularly salaried employee or as an independent contractor, and pay the Unlicensed On-Site
Manager through the Brokerage Firm. The salary may include rent value or other non-
commission income.
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1.59. Viewable Page: A page that may or may not scroll beyond the border of the screen and includes
the use of frame pages.
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Pursuant to section 12-10-203(5)(c), C.R.S., a Broker that held a current and valid
Colorado Real Estate Broker’s license on December 31, 1996 does not need to
demonstrate additional experience and knowledge to act as an Employing Broker.
2. Issued an Employing Broker Level License prior to January 1, 2018 but after
December 31, 1996
Pursuant to section 12-10-203(5)(c)(III), C.R.S., an Applicant that was issued an
Employing Broker level license prior to January 1, 2018 but after December 31, 1996
must demonstrate additional experience and knowledge by satisfying one of the
following requirements:
a. The Applicant must have held an Active Employing Broker level license for at
least two (2) years within the five (5) year period immediately preceding January
1, 2019;
b. Proof of completion of classroom instruction or equivalent Distance Learning
hours for the Employing Broker Refresher Course; or
c. The Applicant meets the experience requirements as set forth in subsection C.3.
of this Rule.
3. Applying for an Employing Broker Level License on or after January 1, 2018
Pursuant to section 12-10-203(5)(c)(III), C.R.S., each Applicant for an Employing
Broker level license who applies on or after January 1, 2018 must submit evidence
satisfactory to the Commission that the Applicant has practiced as an Active Broker,
as appropriate to the Broker’s area of supervision, for at least two (2) years within the
five (5) year period immediately preceding the date of application.
a. The evidence must qualify the Applicant for a total of at least fifty (50) points
having accumulated within the five (5) year period immediately preceding the
date of application, based on the following point system:
i. Each full year that the Applicant has practiced as an Employing Broker is
worth ten (10) points.
ii. Each full year that the Applicant was delegated supervisory authority from an
Employing Broker that included responsibility for ensuring compliance with
the Commission statutes and these Rules, and that ensured responsibility for
the Brokerage Firm (excluding any mentorship) is worth five (5) points. A
copy of the detailed executed delegation of authority must be included.
iii. Each hour of an approved and designated continuing education course in the
Broker’s area of expertise completed after January 1, 2018, is worth one (1)
point. This educational point category cannot exceed twenty (20) points.
iv. Each completed or closed residential sales transaction is worth three (3)
points.
v. Each completed or closed commercial sales transaction is worth six (6)
points.
vi. Each completed or closed vacant land sales transaction is worth six (6)
points.
vii. Each administered commercial property management transaction is worth
four (4) points.
viii. Each administered residential property management transaction with two (2)
points.
ix. Each completed or closed commercial lease transaction is worth two (2)
points.
x. Each completed or closed residential lease transaction is worth one (1) point.
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xi. Each completed or closed time share sales transaction is worth two (2)
points.
b. Each Applicant must complete and submit the prescribed worksheet or form
developed by the Commission and supporting documents with the application for
an Employing Broker level license.
2.6. Associate Broker Level License Requirements
Applicants applying for an Associate Broker level license must satisfy the licensure
requirements as set forth in one of the following:
A. New License
Pursuant to section 12-10-203(4)(a), C.R.S, an Applicant who has never held a real estate
license in Colorado or any other Jurisdiction must complete the following requirements:
1. Proof of completion of the educational requirements as set forth in Rule 2.1.A.;
2. Successful completion of the Real Estate Licensing Examination as set forth in Rule
2.2.A.; and
3. Submission of fingerprints as set forth in Rule 2.3.
B. Licensed Attorney
Pursuant to section 12-10-203(10), C.R.S., an Applicant who is a licensed attorney in
Colorado or any other Jurisdiction must complete the following requirements:
1. Proof of completion of twelve (12) hours of classroom instruction or equivalent
Distance Learning hours for the following courses:
a. Real Estate Closings as set forth in Rule 2.1.A.2.c.; and
b. Trust Accounts and Record Keeping as set forth in Rule 2.1.A.2.d.
2. Successful completion of the Real Estate Licensing Examination as set forth in Rule
2.2.A.;
3. Submission of fingerprints as set forth in Rule 2.3.; and
4. Proof of law license.
C. Expired or Less than Two Years as a Real Estate Salesperson from Another Jurisdiction
Pursuant to section 12-10-203(4)(c), C.R.S., an Applicant holding a real estate
salesperson license from another Jurisdiction that is either expired or held for less than
two (2) years must complete the following requirements:
1. Proof of completion of classroom instruction or equivalent Distance Learning hours
for the following courses:
a. Colorado Real Estate Contracts as set forth in Rule 2.1.A.2.b.;
b. Real Estate Closings as set forth in Rule 2.1.A.2.c.;
c. Trust Accounts and Record Keeping as set forth in Rule 2.1.A.2.d.;
d. Current Legal Issues as set forth in Rule 2.1.A.2.e.; and
e. Practical Application as set forth in Rule 2.1.A.2.f.
2. Successful completion of the Real Estate Licensing Examination as set forth in Rule
2.2.A.;
3. Submission of fingerprints as required in Rule 2.3.; and
4. Submission of certified license history as set forth in Rule 2.4.
D. Expired or Less than Two Years as a Real Estate Broker from another Jurisdiction
Pursuant to section 12-10-203(4)(b), C.R.S., an Applicant holding a real estate broker
license from another Jurisdiction that is either expired or held for less than two (2) years
must complete the following requirements:
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i. If the sentencing and probation terms have been completed, the status of case
should show as closed or dismissed.
ii. If the sentencing and probation terms have not been completed,
documentation must be submitted that shows current compliance with the
sentencing and probation terms. Proof of current compliance should include a
letter from the parole or probation officer and, if applicable, a payment
history from the court showing a current account balance of payment.
2. Police Officer’s report(s), arrest report(s), or incident report(s);
3. A signed written explanation of the circumstances surrounding each violation and,
including the statement attesting that “I have no other criminal violations either past
or pending, other than those I have stated on the application”;
4. If applying for an Active License, a signed written statement from the Employing
Broker that indicates their understanding of the nature of the Applicant’s violation(s)
and willingness to supervise the Applicant if the License is granted by the
Commission. The statement must also include the level of supervision, either a
Reasonable or a High-Level of Supervision, that the Employing Broker feels is
appropriate based upon the Applicant’s violation(s). The Employing Broker may
include additional comments relating to the Applicant’s rehabilitation, truthfulness,
honesty, and good moral character for the Commission’s consideration; and
5. Any other information or documentation that the Commission deems necessary.
B. Supplemental Documentation includes:
1. Employment history for the preceding five (5) years;
2. Letter(s) of recommendation; and
3. A personal written statement that demonstrates and evidences the Applicant’s
rehabilitation, truthfulness, honesty, and good moral character.
3.5. Applicants with Past or Pending Professional Disciplinary Action(s)
Pursuant to sections 12-10-202 and 12-10-203(3), C.R.S., an Applicant who has any past or
pending disciplinary actions of a real estate license or any other professional license from
Colorado or any other jurisdiction must submit with their application any of the following
information and documentation as listed below that is relevant and available to the Applicant. If
the required documentation is no longer available or accessible, the Applicant must provide
written confirmation by the appropriate authority that such documentation is no longer
available or the reasons why the document is not accessible. Failure to provide the required
documentation within the time frame as set forth in Rule 3.3. will result in the cancellation of
the application and forfeiture of the Fee.
A. Any final agency order(s);
B. Any consent order(s);
C. Any stipulation(s);
D. Any investigative report(s); and
E. A signed written explanation of the circumstances surrounding each disciplinary action.
3.6. Issuance of a License
A. Submission of an application does not guarantee issuance of a License. Applicants must
not represent themselves as a Broker until a License has been issued by the Commission.
B. Once an application is deemed complete and not subject to further review as set forth in
Rules 3.4. and 3.5., the Commission will issue a License within ten (10) business days
after review of satisfactory results from the fingerprint-based criminal history record
check, if applicable.
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C. Each Applicant who has successfully satisfied the licensure requirements as set forth in
Chapter 2 of these Rules will be issued an Initial License expiring December 31 of the
year of issuance.
D. A License may be issued on an Inactive status.
E. The License of a Broker whose application has been approved by the Commission
subject to the receipt of errors and omission insurance and/or the identification of an
Employing Broker for supervision will be issued on an Inactive status if such proof is not
submitted within thirty (30) days after written notification by the Commission.
F. 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.
G. An Independent Broker or Employing Broker may adopt a Trade Name according to
Colorado law and such Trade Name will respectively appear in the records of the
Commission relating to the Independent Broker or Employing Broker. If an Employing
Broker adopts a Trade Name, both the legal name and Trade Name will appear in the
records of the Commission for the Associate Brokers.
H. No License will be issued to an Independent or Employing Broker under a Trade Name,
corporate name, partnership name, or limited liability company name which is identical
to another licensed Independent Broker’s or Employing Broker’s Trade Name, corporate,
partnership, or limited liability company name.
3.7. Denial of a License
A. The Commission may deny an application for licensure pursuant to section 12-10-203(3),
C.R.S.
B. If an Applicant for licensure is denied by the Commission for any reason, the Applicant
will be informed of the denial and the reasons for the denial in writing.
3.8. Preliminary Advisory Opinions
Prior to an application for licensure, a person may request that the Commission issue a
preliminary advisory opinion regarding the potential effect that previous professional conduct,
criminal conviction(s), plea(s) of guilt or nolo contendere, deferred judgment(s) and sentence
for criminal offense(s), or violation(s) of the real estate license law may have on a future formal
application for licensure. A person requesting such an opinion is not an Applicant for licensure.
The Commission may, at its sole discretion, issue an opinion which will not be binding on the
Commission; is not appealable; and will not limit the authority of the Commission to
investigate a future application for licensure. However, if the Commission issues a favorable
advisory opinion, the Commission may elect to adopt such advisory opinion as the final
decision of the Commission without further investigation or hearing. The issuance of a negative
or unfavorable opinion will not prohibit a person from submitting an application for licensure.
A person requesting an opinion must do so in a form prescribed by the Commission. Such form
must be supported and documented by, without limitation, the following:
A. Pending or Past Criminal Record
The required and supplemental documentation as set forth in Rule 3.4. for any pending or
past criminal record.
B. Pending or Past Professional Disciplinary Action(s)
The documentation as set forth in Rule 3.5. for any pending or past professional conduct.
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12. The ability of a Broker or Brokerage Firm, upon payment of an additional premium
to obtain an extended reporting period of not less than three hundred sixty-five (365)
days.
13. A conformity endorsement allowing a Colorado resident Broker to meet the errors
and omissions insurance requirement for a real estate license in another group
mandated jurisdiction without the need to purchase separate coverage in that
jurisdiction.
14. Prior acts coverage will be offered to Brokers or Brokerage Firms with continuous
past coverage.
C. Brokers, Brokerage Firms, 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:
1. For both individual and entity/group policies, the insurance carrier is in compliance
with all applicable statutes and rules set forth by the Colorado Division of Insurance
and is licensed or authorized to write policies of errors and omissions insurance in
this State.
2. The insurance provider maintains an A.M. Best rating of “A-” or better.
3. Individual policies must, at a minimum, comply with the following conditions and
the insurance carrier must certify compliance in an affidavit issued to the insured
Broker, Brokerage Firm, or Applicant in a form specified by the Commission.
Insurance carrier agrees to immediately notify the Commission of any cancellation or
lapse in coverage. Independent individual coverage must provide, at a minimum, the
following:
a. The contract and policy are in conformance with all relevant Colorado statutory
requirements.
b. Coverage includes all acts for which a License is required, except those illegal,
fraudulent, or other acts that are normally excluded from such coverage.
c. Coverage cannot be canceled by the insurance carrier except for nonpayment of
the premium or in the event a Broker or Brokerage Firm becomes Inactive or is
revoked or an Applicant is denied a License. Cancellation notice must be
provided in a manner that complies with section 10-4-109.7(1), C.R.S.
d. Coverage is for not less than one hundred thousand dollars ($100,000) for each
licensed Broker and Brokerage Firm per covered claim, with an annual aggregate
limit of not less than three hundred thousand dollars ($300,000) per licensed
person and entity, not including costs of investigation and defense. Coverage for
investigation and defense must be provided in addition to policy coverage limits.
e. A deductible amount for each occurrence of not more than one thousand dollars
($1,000) for claims and the insurance carrier must look to the insured for
payment of any deductible.
f. Payment of defense costs by the insurance carrier must be on a first dollar basis.
That is, the insured is not required to pay anything towards the cost of defense of
any claim or complaint.
g. The ability of a Broker or Brokerage Firm, upon payment of an additional
premium, to obtain an extended reporting period of not less than three hundred
sixty-five (365) days within sixty (60) days of the initial coverage ending.
h. Coverage of a Broker’s use of lock boxes, which coverage must not be less than
twenty-five thousand dollars ($25,000) per occurrence.
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i. The obligation of the insurance carrier to defend all covered claims and the
ability of the insured Broker or Brokerage Firm to select counsel of choice
subject to the written permission of the carrier, which must not be unreasonably
withheld.
j. Prior acts coverage must be offered to Brokers or Brokerage Firms with
continuous past coverage.
k. Upon request, insurance carrier will execute an affidavit in a form and manner
specified by the Commission attesting that the independent policy is in force and,
at a minimum, complies with all relevant conditions set forth in this Rule and that
the insurance carrier will immediately notify the Commission in writing of any
cancellation or lapse in coverage of any independent policy.
4. For Brokerage Firms with independently carried firm coverage, all the requirements
as set forth in subsection C.3. of this Rule will apply except subsections C.3.d.
through e. and j. of this Rule, will be replaced with the following:
a. The per claim limit must be not less than a million dollars ($1,000,000).
b. The aggregate limit must be not less than a million dollars ($1,000,000).
c. The maximum deductible amount for each occurrence must not exceed ten
thousand dollars ($10,000) and the insurance carrier must look to the insured for
payment of any deductible.
D. Applicants for licensure, activation, renewal, and Reinstatement must certify compliance
with this Rule and section 12-10-204, C.R.S. in a manner prescribed by the Commission.
Any Active Broker or Brokerage Firm who so certifies and fails to obtain errors and
omissions coverage or to provide proof of continuous coverage, either through the state
carrier or directly to the Commission, will be placed on Inactive status:
1. Immediately, if certification of current insurance coverage is not provided to the
Commission; or
2. Immediately upon the expiration of any current insurance when certification of
continued coverage is not provided.
3.10. Office
Every Independent Broker or Employing Broker residing in Colorado must maintain a place of
business in this State, except for Associate Brokers or Brokers registered as Inactive.
3.11. Renewal
A. No Renewal Requirement for Brokerage Firms
Brokerage Firms are not required to renew their License; however, the Independent
Broker or Employing Broker associated with the Brokerage Firm must renew as set forth
in Rule 3.11.B.
B. Renewal Requirements for Brokers
1. Licensing Cycle for Renewal (Renewal Periods)
Brokers will renew a License on a Calendar Year Cycle commencing on January 1 of
year one and expiring on December 31 of year three.
2. Notification of Renewal
Notification that a License will expire, unless renewed, will be sent to the electronic
mail address on file with the Commission.
3. Renewal Application
a. All Brokers, whether on Active or Inactive status, may renew their License
beginning forty-five (45) days prior to the expiration date of their License by use
of the renewal application form provided by the Commission.
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issued with an expiration date of three (3) years beginning from the expiration date of the
prior expired License.
C. If a proper application is made more than one (1) year but within three (3) years after the
date of expiration of a License, by payment of the renewal Fee and payment of a
reinstatement Fee equal to the renewal Fee, the reinstated License will be issued with an
expiration date of three (3) years beginning from the expiration date of the prior expired
License.
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B. If a Broker cannot satisfy the continuing education requirement as set forth in subsections
A.1. through A.3. of this Rule, the Broker must comply with the continuing education
requirement as set forth in subsections A.4. or A.5. of this Rule prior to activating an
Inactive License or Reinstating an Expired License to Active status.
4.3. Annual Commission Update Course Standards
A. Pursuant to section 12-10-213(2), C.R.S. and as set forth in Rule 4.2.A., the Annual
Commission Update will be developed, presented by the Division, and furnished only to
approved course providers. The course will be presented without any additional content
by the course provider and/or instructor.
B. All course providers must apply annually for approval to offer the Annual Commission
Update as set forth in Rule 4.6.B., except that the course outline as set forth in Rule
4.6.B.1. and course exam as set forth in Rule 4.6.B.2. will be furnished by the
Commission.
C. Each Broker must complete the Annual Commission Update by achieving a passing score
of seventy percent (70%) on a written or on-line course examination developed by the
Commission. The Commission will provide an alternate examination for successive use
by Brokers failing the end-of-course examination.
4.4. Standards for Continuing Education Courses
Courses approved for continuing education must meet the following standards:
A. Course Content
1. The course content must have been developed by persons qualified in the subject
matter;
2. The content of the course must be current;
3. The course must maintain and improve a Broker’s skill, knowledge, and competency
in the real estate practice; and
4. The course must be at least one (1) hour increment in length, containing at least fifty
(50) instructional minutes per one (1) hour increment.
B. Topics for Continuing Education Courses
1. Eligible Topics for Continuing Education Courses
Pursuant to section 12-10-213(3), C.R.S., courses approved for continuing
education must include one (1) or more of the following topics:
a. Real Estate Law;
b. Property Exchanges;
c. Real Estate Contracts;
d. Real Estate Finance;
e. Real Estate Appraisal;
f. Real Estate Closing;
g. Real Estate Ethics;
h. Condominiums and Cooperatives;
i. Real Estate Time-Sharing;
j. Real Estate Marketing Principles;
k. Real Estate Construction;
l. Land Development;
m. Real Estate Energy Concerns;
n. Real Estate Geology;
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J. Brokers must retain proof of continuing education completion certificates for four (4)
years from the date of the Broker’s most current renewal or, if newly licensed, from
Initial Licensure.
K. The act of submitting an application for renewal, activation, or Reinstatement of a
License means that the Broker attests to compliance with the continuing education
requirement pursuant to section 12-10-213, C.R.S. However, if a Broker did not comply
with the continuing education requirement, the Broker must provide written notification
to the Division prior to submitting an application for renewal, activation, or
Reinstatement of a License.
L. Upon written notification from the Commission, Brokers must provide proof of
completion of the continuing education requirement in a manner that is acceptable to the
Commission. Failure to provide said proof within the prescribed time set by the
Commission in its notification will be grounds for disciplinary action unless the
Commission has granted an extension.
4.6. Process for Course Approval
A. Course Providers
Continuing education must be taken from course providers either approved by the
Commission or exempt as set forth in subsection A.2. of this Rule.
1. Approval of Course Providers
All course providers must receive approval from the Commission prior to any course
offering except for the course providers specifically exempted as set forth in
subsection A.2. of this Rule.
2. Course Providers Exempt from Commission Approval
The following course providers may provide course offerings for elective continuing
education credit without Commission pre-approval only if the courses are within the
topic areas pursuant to section 12-10-213(3), C.R.S. and as set forth in Rule 4.4.B.1.
and comply with all other provisions of Chapter 4 of these Rules.
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.
B. Course providers must, as set forth in Chapter 4 of these Rules, submit an application
form prescribed by the Commission, along with the following information at least thirty
(30) days prior to the initial proposed course date(s):
1. Detailed course outline or syllabus, including the intended learning outcomes, the
course objectives, and the approximate time allocated for each topic.
2. A copy of the course exam(s) and instructor answer sheet, if applicable.
3. Copy of the instructor’s teaching credential; if none, a resume showing education and
experience which evidence a mastery of the material to be presented.
4. Upon Commission request, a copy of any advertising or promotional material used to
announce the offering.
5. Upon Commission request, a copy of any textbook, manual, audio or videotapes, or
other instructional material.
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Broker or Brokerage Firm must retain a copy of each executed Trust or Escrow Account
deposit agreement for inspection by the Commission.
5.3. Accounts in the Name of the Brokerage Firm or Broker
A. Brokerage Firms acting in the name of the Employing Broker or Independent Broker as a
sole- proprietor must maintain separate Trust or Escrow Accounts in the name of the
Employing Broker or Independent Broker.
B. Brokerage Firms licensed as a partnership, corporation, or limited liability company must
maintain separate Trust or Escrow Accounts in the name of the licensed partnership,
corporation, or limited liability company.
C. The Employing Broker or Independent Broker are responsible for, must maintain and be
able to withdraw money from each separate account, but may authorize other licensed or
unlicensed cosigners. However, such authorization will not relieve the Employing Broker
or Independent Broker of any responsibility under the Commission statutes and these
Rules.
5.4. Number of Separate Trust or Escrow Accounts may vary from Zero to Unlimited
A Brokerage Firm is not limited as to the number of separate accounts, which may be
maintained for Money Belonging to Others. If the Brokerage Firm is not in possession of
Money Belonging to Others, there is no obligation to maintain a separate Trust or Escrow
Account.
5.5. Separate Trust or Escrow Accounts Required for Rental Receipts and Security Deposits
A Brokerage Firm who engages in Property Management must deposit rental receipts and
security deposits and disburse money collected for such purposes in separate Trust or Escrow
Accounts, a minimum of one for rental receipts and a minimum of one for security deposits.
5.6. Trust or Escrow Funds must be Available Immediately without Penalty
Unless otherwise agreed to in writing by the parties, Money Belonging to Others must not be
invested in any type of account, security, or certificate of deposit that has a fixed term for
maturity or imposes any fee or penalty for withdrawal prior to maturity.
5.7. Time Limits for Deposit of Money Belonging to Others
A. All Money Belonging to Others received by a Brokerage Firm for Property Management
must be deposited in the Brokerage Firm’s appropriate Trust or Escrow Account no later
than five (5) business days following receipt of funds or mutual execution of a lease,
whichever is later.
B. All other Money Belonging to Others which is received by a Brokerage Firm must be
deposited in the Brokerage Firm’s Trust or Escrow Account no later than three (3)
business days following receipt of funds or mutual execution of contract, whichever is
later.
5.8. Transfer of Security Deposits
A. Owner-Held
A Brokerage Firm receipting for security deposits will not deliver such security deposits
to an owner without the tenant’s written authorization in a lease or unless written notice
has been given to the tenant. Such notice must be given in a manner so 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 security deposit. If a security deposit is
delivered to the owner, the Management Agreement should place financial responsibility
on the owner for its return, and in the event of a dispute over ownership of the security
deposit, must authorize disclosure to the tenant of the owner’s true name and current
mailing address.
B. New Property Management Company
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Brokerage Firm’s Trust or Escrow Account(s). Such activities not involving Real Estate
Brokerage Services include:
1. Guest deposits for short term rentals;
2. Security deposits for Broker’s own rental properties including any Broker owned
properties held in a partnership, or other entity with others, any join ventures, or
syndications provided the Broker’s ownership in the entity or property is more than
the 20% threshold pursuant to section 12-10-201(6)(b)(VII), C.R.S. ;
3. Deposits from a buyer when the Broker is acting as a builder; or
4. Any other non-Real Estate Brokerage Service purposes.
B. If a Broker accepts Money Belonging to Others for deposit into Broker’s or Brokerage
Firm’s Trust or Escrow Account as set forth in subsection A. of this Rule for activities
not involving Real Estate Brokerage Services, the Broker must:
1. If required by the Broker's Brokerage Firm’s Office Policy Manual, deposit the funds
in the Broker’s Brokerage Firm’s Trust or Escrow Accounts as set forth in Chapter 5
of these Rules; or
2. Deposit the funds into Broker’s own Trust or Escrow Accounts as set forth in Rule
5.2. and must also comply with the following Chapter 5 Rules:
i. Rule 5.6. Trust or Escrow Funds must be Available Immediately without
Penalty;
ii. Rule 5.9. Diversion and Conversion Prohibited;
iii. Rule 5.10. Commingling Prohibited;
iv. Maintain a “journal” as set forth in Rule 5.14.A. and perform a two-way
reconciliation monthly to show that on the date of reconciliation the cash balance
shown in the journal and the reconciled bank balance are the same; and;
v. Rule 5.21. Production of Documents and Records;
5.12. Earnest Money
A. Any Broker receiving earnest money must deliver such earnest money to the earnest
money holder to be deposited in accordance with the contract. The Broker must obtain a
dated and signed receipt from the person or entity to whom the Broker has been
instructed to deliver the deposit.
B. If the Brokerage Firm will be holding the earnest money in a transaction, the earnest
money must be deposited as set forth in Rule 5.7.B. The Brokerage Firm may transfer the
earnest money from the Brokerage Firm’s Trust or Escrow Account to a lawyer or a
closing entity closing the transaction. The Brokerage Firm delivering the earnest money
deposit to a lawyer or a closing entity providing settlement services must obtain a dated
and signed receipt from the person or entity providing settlement services.
5.13. Promissory Note for Earnest Money
If a promissory note is received as earnest money pursuant to an executed contract, the seller
must be informed of the date such promissory note becomes due. If payment is not made by the
due date of the promissory note, the Broker must promptly notify the seller and deliver the
original promissory note.
5.14. Recordkeeping Requirements
An Employing Broker or Independent Broker must maintain, at the Brokerage Firm’s licensed
place of business, a record keeping system as set forth in Rule 5.16., consisting of at least the
following elements for each required Trust or Escrow Account:
A. A “journal” or an equivalent accounting system which records, in chronological order, all
Money Belonging to Others which is received or disbursed by the Brokerage Firm.
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1. All deposits of funds into a Trust or Escrow Account must identify each person
tendering funds, the amount of funds tendered, types of funds received from each
person, and the property address affected.
2. All disbursements of funds from a Trust or Escrow Account must be supported by
documents such as bids, invoices, contracts, etc. Ledger and journal records must
identify the payees, property addresses affected and amount of funds transferred for
each property.
5.16. Method of Accounting
In the absence of a written agreement to the contrary, the “cash basis” of accounting must be
used for maintaining all required Trust or Escrow Accounts and corresponding records. A
Brokerage Firm may use another method of accounting if it is agreed upon in writing by the
Brokerage Firm and the beneficiary. The Brokerage Firm must maintain separate Trust and
Escrow Accounts and corresponding records for each beneficiary using a different accounting
method.
5.17. Mark-Ups
Pursuant to sections 12-10-217(1)(d) and (t) and 6-1-105, C.R.S., the Broker and Brokerage
Firm must obtain prior written consent from the owner to assess and receive mark-ups and/or
other compensation for services performed, regardless if for the benefit of the Broker or another
third party. The Broker and Brokerage Firm must retain accurate on-going records, which
verify disclosure and consent and which fully account for the amounts or percentages of
compensation assessed or received.
5.18. Items in Lieu of Cash
Any instrument, equity, or Thing of Value taken in lieu of cash must be held by the Brokerage
Firm, except as otherwise agreed.
5.19. Branch Office Trust or Escrow Accounts Require Branch Office Recordkeeping
In the event a branch office of a Brokerage Firm maintains a Trust or Escrow Account separate
from the Trust or Escrow Account(s) maintained by the Brokerage Firm’s main office, a
separate record keeping system must be maintained in the branch office. The responsibility of
maintaining separate record keeping systems will be the responsibility of the Employing
Broker.
5.20. Money Collected by Brokerage Firm
A. When money is collected by a Brokerage Firm for the performance of specific services or
for the expenses of performing such services, or for any other expense, and such money
is collected before the services have been performed, the Brokerage Firm must deposit
such money in a Trust or Escrow Account pursuant to section 12-10-217(1)(i), C.R.S. No
money may be withdrawn from the Trust or Escrow Account, except for authorized
expenses for performing such services. A full and itemized accounting must be furnished
as set forth in Rule 5.15.
B. Nothing in this Rule will prohibit a Brokerage Firm from taking a non-refundable retainer
that need not be deposited into a Trust or Escrow Account provided this be specifically
agreed to in writing between the Brokerage Firm and the person paying the retainer.
5.21. Production of Documents and Records
A Broker and Brokerage Firm must produce for inspection by the Commission any document
or record as may be reasonably necessary for investigation or audit in the enforcement of the
Commission statutes and these Rules. Failure to submit such documents or records within the
time set by the Commission in its notification will be grounds for disciplinary action unless the
Commission has granted an extension of time for such production.
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5.22. Responsibility of the Employing Broker or Independent Broker for Brokerage Firm’s
Compliance
The Employing Broker or Independent Broker are held jointly responsible with the Brokerage
Firm in complying with Chapter 5 of these Rules.
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5. Instruct the Unlicensed On-Site Manager not to negotiate any of the material terms of
a lease or rental agreement with a Consumer.
F. Delegation of Supervision
Employing Brokers may delegate supervisory authority to other experienced Associate
Brokers for both “Reasonable-Level of Supervision” and “High-Level of Supervision” as
follows:
1. Supervisory Brokers must bear responsibility along with the Employing Broker for
ensuring compliance with the Commission statutes and these Rules for those persons
the delegated Associate Broker is supervising.
2. Any delegation of authority must be in writing and signed by the Supervisory Broker.
A copy of such delegation must be maintained by the Employing Broker for
inspection, upon request, by any authorized Commission representative.
3. The Supervisory Broker must have competency as set forth in Rule 6.2. in the area of
practice in which the Supervisory Broker is supervising.
4. An Employing Broker must not contract with any Associate Broker so as to
circumvent the requirement that the Employing Broker supervise Associate Brokers.
While an Employing Broker may delegate supervision duties, the Employing Broker
is still ultimately responsible for the supervision provided.
G. Confidential Information Revealed to Employing Broker or Supervisory Broker
Associate Brokers may reveal to an Employing Broker or a Supervisory Broker
confidential information about the Associate Broker’s client. Associate Brokers’
disclosure of such confidential information does not change or extend the Brokerage
Relationship beyond the Associate Broker. Confidential information includes the
information pursuant to sections 12-10-404(2), 12-10-405(2) and 12-10-407(3), C.R.S.
6.4. Brokerage Firm’s Policies
A. Brokerage Firm’s Brokerage Relationship Policy
1. An Employing Broker or Independent Broker must adopt a written office policy
which identifies and describes the relationships in which such Employing Broker,
Independent Broker, and any Associate Brokers may engage with any Consumers
prior to providing any Real Estate Brokerage Services pursuant to sections 12- 10-
403 and 12-10-408, C.R.S.
2. An Employing Broker or Associate Broker must be designated in writing by the
Employing Broker to serve as a Single Agent or Transaction-Broker for a Consumer
pursuant to section 12-10-402(3), C.R.S. and as set forth in Rule 6.6.
B. Office Policy Manual
Employing Brokers must also adopt any written policies suitable to the Brokerage Firm’s
business, subject to the following as applicable:
1. Applies to all Associate Brokers in the Brokerage Firm.
2. Be given to and signed by each Associate Broker.
3. Identifies the procedures for the designation of Brokers who are to work with
Consumers pursuant to section 12-10-403(6), C.R.S. and as set forth in subsection A.
of this Rule.
4. Identifies and provides adequate means and procedures for the maintenance and
protection of confidential information that:
a. The seller or landlord is willing to accept less;
b. The buyer or tenant is willing to pay more;
c. Information regarding motivating factors for the parties;
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A Broker or Team who changes their Brokerage Relationship from a Single Agent for one
Consumer to assisting both Consumers in the same real estate transaction as a Transaction-
Broker must provide the written Commission-Approved “Change of Status” Form to the
Consumer that has the changed relationship with the Broker, at the time the Broker begins to
assist both Consumers as a Transaction-Broker, but not later than at the time the Consumer
signs the contract.
* 6.10. Advertising
A. Names
1. Pursuant to section 12-10-203(9), C.R.S., no Broker will be licensed to conduct Real
Estate Brokerage Services under more than one (1) Brokerage Firm.
* 2. Pursuant to section 12-10-203(9), C.R.S., no Broker or Brokerage Firm will conduct
or promote Real Estate Brokerage Services except in the name under which that
Broker or Brokerage Firm appears in the records of the Commission. A Brokerage
Firm may also include the locations of its offices, to include branch offices in the
Advertising.
3. Brokers will not Advertise so as to mislead the public concerning the identity of the
Broker or the Broker’s Brokerage Firm.
4. All Advertising must be done clearly and conspicuously in the name of the Broker’s
Brokerage Firm. However, a Broker who Advertises real property owned by the
Broker which is not listed for sale or lease with the Broker’s Brokerage Firm is
exempt from Advertising the Broker’s own property in the Broker’s Brokerage
Firm’s name.
5. A Brokerage Firm may use a Trade Name in addition to or instead of the Brokerage
Firm’s legal name. The Trade Name must be filed with the Commission.
6. A Brokerage Firm may use a Trademark in conjunction with the Brokerage Firm’s
legal name or Trade Name with permission of the owner of such Trademark.
a. A Brokerage Firm that uses a Trade Name or Trademark owned by a third party
is required to use one (1) of the following statements, which must appear in a
clear and conspicuous manner so as to attract the attention of the public:
i. “Each (insert general Trade Name) brokerage business is independently
owned and operated.” or
ii. “Each office independently owned and operated.”
b. Upon written request, the above statements may be modified with consent of the
Commission.
7. No Brokerage Firm will use more than one (1) Trade Name; however, upon written
request and with the consent of a representative of the Commission, a Brokerage
Firm may use more than one (1) Trademark. Use of the Trademark(s) is only
acceptable if the Brokerage Firm has obtained permission of the registrant of such
Trademark.
8. No Broker may use a professional designation in Advertising unless the Broker is in
good standing and the designation is easily verifiable by the public and the
Commission. A Broker that Advertises an award, membership, or achievement must
be able to provide verification of the validity of such claims upon request from any
member of the public or Commission.
B. Teams
1. Brokers who form a Team must not Advertise in a manner that misleads the public as
to the identity of the Team’s Brokerage Firm. Teams are prohibited from using the
following terms in the Team’s name:
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a. Realty,
b. Real estate,
c. Realtors,
d. Company,
e. Corporation,
f. Corp.,
g. Inc.,
h. LLC,
i. LP or LLP, or
j. Any other term that would imply a separate entity from the Brokerage Firm with
which the Team Brokers are licensed.
2. All Team Advertising must clearly and conspicuously include and be in conjunction
with the legal name or Trade Name of the Brokerage Firm.
3. If requested by a Consumer, the Commission, another Brokerage Firm or Broker, the
Brokerage Firm will provide the names of the Brokers that belong to any Team
licensed with the Brokerage Firm.
4. Brokers may not allow the use of the Team’s name by other Brokers outside the
Team’s Brokerage Firm.
C. Brokerage Firms and Brokers are responsible for ensuring that all Advertising is accurate
and complies with copyright laws and other applicable laws and regulations.
D. Electronic Media
* 1. When a Broker owns or controls Electronic Media, each Viewable Page must include
the Broker’s Brokerage Firm’s name. Any expired listings must be removed from the
Broker’s Electronic Media within three (3) days of a Listing Contract expiring.
2. If a Broker authorizes a third party for the Broker’s Electronic Media Advertising,
the Broker is responsible for ensuring that the information provided to such third
party is accurate. The Broker must submit a written request to any third party
syndicators to have all expired listings removed from Electronic Media within three
(3) days of a Listing Contract expiring.
* 3. A Broker who communicates through email, chat, instant messages, newsgroups,
discussion lists, bulletin boards, blogs, or other similar means for purposes of
Advertising the Broker’s Real Estate Brokerage Services must use the Broker’s
Brokerage Firm’s name. However, once a Broker has disclosed the Broker’s
Brokerage Firm to a specific Consumer, the Broker is not required to continue to
make the same disclosure to the specific Consumer.
* 4. When it is not reasonable for a Broker to disclose the Broker’s Brokerage Firm’s
name in an Electronic Media because space is limited, the Broker will disclose the
Broker’s Brokerage Firm’s name clearly and conspicuously within the first click of
the mouse.
* E. Past Sales Data Advertising
General sales data Advertising, regardless of the medium, which recaps sales activity
over a period of time in a given subdivision or geographical area must include all of the
following:
1. Cite the source of the data; and
2. Include a disclaimer, if accurate, that all reported sales:
a. Were not necessarily listed or sold by the Broker; and
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b. Are intended only to show trends in the area or will separately identify the
Broker’s own sales activity.
* F. Authority to Advertise Available and Under Contract Properties
* Brokers may not Advertise the availability or price of a property whether for sale or lease
without authority from the owner or the owner’s Broker. If such authority is requested, an
owner’s Broker may not withhold the authority to advertise said property unless such
authority is contradictory to instructions from the owner as memorialized in the Listing
Contract or other writing. A Broker who has received written permission to disseminate
another Broker’s Advertising or an owner’s Advertising who is not represented by a
Brokerage Firm (For Sale by Owner) may do so as set forth in subsections F.1. and F.2.
of this Rule.
* 1. A Broker may disseminate another Broker’s Advertising in the following manner:
* a. A Broker must have the owner’s Broker’s written permission to disseminate the
Advertising;
* b. The Broker discloses, in a conspicuous manner, the owner’s Brokerage Firm;
* c. The Advertising is accurate and not misleading to Consumers; and
* d. The Advertising complies with subsection C. of this Rule.
* 2. A Broker may disseminate an owner’s Advertising who is not represented by a
Brokerage Firm in the following manner:
* a. The Broker must have the owner’s written permission to disseminate the
Advertising;
* b. The Broker discloses, in a conspicuous manner, that the owner is not represented
by a Broker;
* c. The Advertising is accurate and not misleading to Consumers; and
* d. The dissemination of an owner’s Advertising does not include submitting the
information into a property exchange or multiple listing service.
G. Price Set by Owner
The price quoted in any Advertising will not be anything other than the price agreed upon
between the Broker and the owner.
6.11. Square Footage Disclosure
When a Broker Advertises the square footage of a residential property, including for
submission to a multiple listing service, the Broker must disclose the source of the square
footage of the floor space of the living area of the residence to Consumers on the Commission-
Approved Form.
A. Broker Measurement
A Broker is not required to measure the square footage of a property. If the Broker takes
an actual measurement, it does not have to be exact; however, the Broker’s objective
must be to measure accurately and calculate competently in a manner that is not
misleading and must:
1. Disclose to the Consumer the standard, methodology, or manner in which the
measurement was taken;
2. Advise that the measurement is for purposes of marketing and is not a measurement
for loan, valuation, or any other purpose; and
3. Advise that if exact square footage is a concern, then the property should be
independently measured.
B. Other Sources of Square Footage
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If a Consumer is provided information from a source other than the Broker’s own
measurement for square footage, that source (whether an actual measurement, building
plans, prior appraisals, assessor’s office, etc.) must include the date of issuance, if any,
and must be disclosed to the Consumers in writing by the Broker in a timely manner.
Such disclosure must be on the Commission-Approved Form. A Broker may not provide
information to a person from a source known to be unreliable and is responsible for
indicating obvious mismeasurement by others.
6.12. Notice Required on Competitive Market Analysis (CMA) or Broker’s Price Opinion (BPO) for
Purposes Other Than Marketing
When a Broker prepares a CMA or BPO for any reason other than the anticipated sale or
purchase of the property, the Broker 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 section 12-10-602(9)(b)(II), C.R.S,
Brokers are prohibited from completing CMAs or BPOs that are used for the purpose of
obtaining financing. Preparation of CMAs or BPOs for reasons other than anticipated sale,
purchase, or lease is not considered Real Estate Brokerage Services. As such, any
compensation received for such preparation is not required to be paid to the Broker’s Brokerage
Firm unless stated otherwise in Brokerage Firm’s Office Policy Manual.
6.13. Offers must be Presented to Other Broker
A Broker must present all offers to the other Consumer’s Broker if such other Consumer has an
unexpired Listing Contract. If the Broker has made reasonable, but unsuccessful, attempts to
present an offer to the other Consumer’s Broker, the Broker must present the offer to the other
Consumer’s Broker’s Employing Broker. If no Employing Broker exists, or if reasonable
attempts to present the offer to the Employing Broker have failed, the Broker may present the
offer directly to the other Consumer.
6.14. Contracts
A. Document Preparation and Duplicates
1. Contracting instruments prepared by a Broker performing Real Estate Brokerage
Services for all real estate or business opportunity transactions must 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 contract
must be disclosed in an amendment to the contract.
2. A Broker must deliver Duplicates of all documents prepared by the Broker to all
Consumers or their representatives at the time such document was prepared by the
Broker as set forth in Rule 6.19.
B. No Fees to Brokers for Legal Document Preparation
Brokers are not obligated to prepare any legal documents as part of a real estate
transaction. If the Broker or the Broker’s designee prepares any legal document, the
Broker or the Broker’s designee may not charge a separate fee for preparation of such
legal documents. The Broker is not responsible for fees charged for the preparation of
legal documents where they are prepared by an attorney representing the Consumer.
Costs of closing not related to preparation of legal documents may be paid by the Broker
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.
C. Listing must be in Writing
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Regardless of the Brokerage Relationship, all seller Listing Contracts and landlord
Listing Contracts must be in writing prior to performing any Real Estate Brokerage
Services.
D. Listings must have Termination Date
All Listing Contracts or other written agreements between a Consumer and a Brokerage
Firm or Broker to perform Real Estate Brokerage Services must have a definite date for
termination pursuant to section 12-10-409(1)(b), C.R.S.
E. Holdover Agreement
When a Listing Contract or other written agreement contains a provision entitling a
Brokerage Firm to a commission 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 Consumer during the term of the agreement, including any
extension thereof.
F. Brokers must recommend title exam and legal counsel
Brokers are not permitted to give advice on exceptions to title as such conduct would
constitute the unauthorized practice of law. Brokers must recommend, before the
applicable deadlines, that Consumers should examine all title exceptions and encourage
Consumers to seek guidance from a licensed attorney.
G. Review of Deeds
Brokers should not give advice based on their review of deeds for conveyance of real
property unless such deeds are drafted by the Broker.
6.15. Sign Crossing
A. Brokers will not negotiate a Listing Contract directly with a Consumer for compensation
from said Consumer if such Broker knows the Consumer has an unexpired Listing
Contract with another Brokerage Firm granting said Brokerage Firm an exclusive
contract.
B. However, if a Broker is contacted by a Consumer who is currently subject to an exclusive
Listing Contract, and the Broker has not initiated the discussion, the Broker may
negotiate the terms upon which to take a future Listing Contract or, alternatively, may
take a Listing Contract to become effective upon expiration or termination of any existing
Exclusive Listing.
C. The burden of inquiry is on the Broker to determine the existence of the Listing Contract
and to advise the Consumer to seek guidance from a licensed attorney.
6.16. Access Information for a Property
A Broker who is not the owner’s Broker is prohibited from sharing access information to a
property with any third party, such as an assistant, home inspector, contractor, or a Consumer
without prior authorization from the owner’s Broker.
6.17. Duty to Disclose Conflict of Interest and License Status
A. Brokerage Firms and Brokers have a continuing duty to disclose, in writing, any known
conflict of interest that may arise in the course of any real estate transaction.
B. If a Broker sells, buys, or leases real property on the Broker’s own account, such Broker
must disclose in the contracting instrument, or in a separate concurrent writing, that they
are a licensed Broker.
C. A Brokerage Firm or Broker engaged in Property Management Services 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 Brokerage Firm or Broker is required to disclose any
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4. All money collected from the parties to the transaction prior to closing must be
deposited in the name of the Brokerage Firm licensed in Colorado as set forth in
Chapter 5 of these Rules.
6.22. Prohibited Remedies for Compensation
A. If for any reason the seller fails, refuses, neglects, or is unable to consummate the
transaction as provided for in the contract, and through no fault or neglect of the buyer
the real estate transaction cannot be completed, the Brokerage Firm has no right to any
portion of the earnest money deposit which was deposited by the buyer.
B. In a residential transaction, unless Broker has adjudicated a claim and a judgment is
entered, no Broker will file or threaten to file a lien, a lis pendens, record a Listing
Contract to secure the payment of a commission or other fee associated with Real Estate
Brokerage Services, cause the title to a property to become clouded or interfere with the
transfer of title when the Broker is not a principal in the transaction.
C. A Brokerage Firm and Broker who has Commercial Real Estate listed for lease and has
provided Real Estate Brokerage 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 Brokerage Firm and the owner may file a lien pursuant to section
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 Estate has been
conveyed to a bona fide buyer prior to the recording of the notice to lien pursuant to
section 38-22.5-104, C.R.S., a Brokerage Firm or Broker may not file a lien for a
commission that is due as the result of a lease renewal.
6.23. Immediate Notification of Conviction, Plea or Violation Required
A Broker must provide written notification to the Commission within thirty (30) calendar days
for any of the following:
A. A plea of guilty, a plea of nolo contendere, or a conviction of any crime as pursuant to
section 12-10-217(1)(n), 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 Broker in any other Jurisdiction, if the Broker’s
action(s) would constitute a violation of Commission statutes and these Rules; and
D. A suspension or revocation of a license, registration, or certification by Colorado or
another Jurisdiction, within the last five (5) years, for fraud, deceit, material
misrepresentation, theft, or the breach of a fiduciary duty that denied the Broker the
authorization to practice as a mortgage loan originator, 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.
6.24. Electronic Records and Production of Records
All records required to be maintained by Brokers or Brokerage Firms may be maintained as
Electronic Records. Electronic Records or printed records must be produced upon request by
the Commission or any principal party to a transaction and must be in a format that has the
continued capability to be retrieved and legibly printed.
* 6.25. Investigations or Audits by Commission
A. Notification of a Complaint that has been Assigned for Investigations or an Audit
1. A Broker or Brokerage Firm will receive written notification from the Commission
regarding the following:
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* a. A complaint has been filed and an investigation has been initiated. A copy of the
complaint that has been filed against the Broker or Brokerage Firm will be
provided; or
* b. A complaint has been initiated on the Commission’s own motion. A summary of
the complaint against the Broker or Brokerage Firm will be provided; or
* c. The Broker or Brokerage Firm has been selected for an audit.
2. Upon receipt of the Commission’s notification, a Broker or Brokerage Firm must
submit a written response to the Commission. Failure to submit a written response
within the time set by the Commission in its notification will be grounds for
disciplinary action regardless of the question of whether the underlying complaint or
audit warrants further investigation or subsequent action by the Commission. The
written response must contain the following:
a. A complete and specific answer to the factual recitations, allegations, or
averments made in the complaint filed against the Broker or Brokerage Firm,
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. A complete transaction file and any documents or records requested in the
notification letter.
d. Any further information relative to the complaint or audit that the Broker or
Brokerage Firm believes to be relevant or material to the matters addressed in the
notification letter.
B. Extension to Respond
Upon request, the Commission will grant extensions of time for Brokers or Brokerage
Firms to respond to any complaint or audit provided such request is reasonable.
C. Produce Records for Investigation or Audit
Brokers and Brokerage Firms must retain and produce for inspection by the Commission
any document or record as may be reasonably necessary for investigation or audit in the
enforcement of Commission statutes and these Rules. Failure to submit such documents
or records within the time set by the Commission in its notification will be grounds for
disciplinary action unless the Commission has granted an extension of time for such
production.
6.26. Actions when License is Suspended, Revoked, Expired or Inactive
Upon suspension, revocation, expiration, or transfer to Inactive Status of a License, the Broker
or Brokerage Firm is responsible for immediate compliance with the following:
A. If an Associate Broker:
1. Cease any activities requiring a License.
2. Inform the Employing Broker of the change in license status.
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 impacted Consumers within seven (7) days 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 Associate 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 Brokerage Firm.
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B. If an Independent Broker:
1. Cease any activities requiring a License.
2. 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.
3. Notify all impacted Consumers within seven (7) days of the action taken and the
impact that the change in license status will have on any pending transaction.
4. Release the affected parties from any active Listing Contract(s) with the Independent
Broker.
5. Instruct the affected parties to seek guidance from a licensed attorney or retain a new
Brokerage Firm regarding any pending transactions.
6. The Independent Broker is responsible for accounting for all funds, returning all
Trust and Escrow Account records and making all final disbursements to the rightful
beneficiaries within thirty (30) days of the change in license status. The Independent
Broker is also responsible for providing the Commission with a full list of all
impacted Consumers’ contact information within seven (7) days and for maintaining
all records for four (4) years.
C. If an Employing Broker:
1. Cease any activities requiring a License.
2. 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.
3. The Employing Broker is personally responsible for the handling of any and all
earnest money deposits, Trust or Escrow Account funds received or disbursed by the
Brokerage Firm. The Employing Broker is responsible for returning all Trust and
Escrow Account records to the Brokerage Firm.
4. The Brokerage Firm must designate a new Employing Broker to be responsible for
the management and supervision of the licensed actions of the Brokerage Firm and
all Associate Brokers shown in the Commission’s records as being in the employ of
the Brokerage Firm. Pursuant to section 12-10-203(6)(c), C.R.S., the Brokerage Firm
may also seek a Temporary License to prevent hardship if none of the Brokerage
Firm’s Associate Brokers hold an Employing Broker level license.
5. If the Brokerage Firm is unable to designate a new Employing Broker or is not
granted a Temporary License, the Licenses of the Brokerage Firm and any Associate
Brokers will be placed on Inactive status. The Employing Broker must also perform
all duties as set forth in subsection C.6. of this Rule.
6. If a Brokerage Firm’s License becomes Inactive, Expired or revoked, the Employing
Broker will have seven (7) days to notify all Consumers impacted as to the effect of
such license status change will have on the Associate Brokers and all pending
transactions. The Employing Broker is responsible for accounting for all funds,
returning all Trust and Escrow Account records and making all final disbursements to
the rightful beneficiaries within thirty (30) days of the change in license status. The
Employing Broker is also responsible for providing the Commission with a full list of
all impacted Consumers’ contact information within seven (7) days and for
maintaining all records for four (4) years.
D. Commissions or fees may be received by a Broker or Brokerage Firm only for
transactions where the commission or fee was earned prior to that Broker’s or Brokerage
Firm’s suspension, revocation, expiration, or transfer to Inactive status.
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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 Form
A “Colorado Bar Association Form” is 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. Brokers may only use the form when 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. The form may not be altered by the Broker
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 language that says: “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 advise the parties as to the effects thereof.
F. Disclosure Form
A “Disclosure Form” is a form used for disclosure purposes only and 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 that says: “This form has not been
approved by the Colorado Real Estate Commission”. The Broker may advise the parties
as to the effects thereof. The form may only provide information concerning:
1. The real estate involved in the transaction specifically; or
2. The geographic area in which the real estate is located generally.
G. Title Company Form
A “Title Company Form” is a form prescribed and completed by a title company that is
providing closing services in a transaction. The Broker may advise the parties as to the
effects thereof.
H. Letter of Intent
A “Letter of Intent” is created or prepared by a Broker, Employing Broker, or Brokerage
Firm. The Letter of Intent must state on its face that it is nonbinding and creates no legal
rights or obligations. The form must contain the language that says: “This form has not
been approved by the Colorado Real Estate Commission”. The Broker may advise the
parties as to the effects thereof.
7.2. Permitted and Prohibited Modifications and Form Reproduction of Commission-Approved
Forms as set forth in Rule 7.1.A.
A. A Broker or Brokerage Firm may add the Brokerage Firm’s name, Trade Name, address,
telephone, e-mail, Trademark or other identifying information on a Commission-
Approved Form.
B. A Broker or Brokerage Firm may add initial lines at the bottom of a page of any
Commission-Approved Form.
C. 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.
D. Blank spaces on a Commission-Approved Form may be lengthened or shortened to
accommodate the relevant data or information.
E. Provisions that are inserted into blank spaces must be printed in a font style or type that
clearly differentiates such insertions from the font style or type used for the Commission-
Approved Form language.
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F. A Broker may delete part or all of the following provisions of the Commission-Approved
“Contract to Buy and Sell Real Estate” Forms (even if the provision has since been
changed to 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”.
1. Section 2.5. Inclusions
2. Section 2.6. Exclusions
3. Section 2.7. Water Rights/Well Rights
4. Section 4.2. Seller Concession
5. Section 4.5. New Loan
6. Section 4.6. Assumption
7. Section 4.7. Seller or Private Financing
8. Section 5. Financing Conditions and Obligations
9. Section 6. Appraisal Provisions
10. Section 7. Owners’ Association
11. Section 8.6. Right of First Refusal or Contract Approval
12. Section 9. New ILC, New Survey
13. Section 10.6. Due Diligence
14. Section 10.8. Source of Potable Water (CBS1, CBS2, CBS4, CBSF1)
15. Section 10.9. Existing Leases; Modification of Existing Leases; New Leases (CBS2,
CBS3, CBS4)
16. Section 11. Estoppel Statements (CBS2, CBS3, CBS4)
17. Section 15.3. Status Letter and Record Change Fees
18. Section 15.4. Local Transfer Tax
19. Section 15.5. Private Transfer Fee
20. Section 15.7. Sales and Use Tax
21. Section 16.2. Rents
22. Section 16.3. Association Assessments
G. 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”.
1. Section 3. Dates and Deadlines Table
2. Section 4. Purchase Price and Terms [in the Counterproposal only]
H. A Broker or Brokerage Firm may add signature lines and identifying labels for the
parties’ signatures on a Commission-Approved Form.
I. A Broker or Brokerage Firm 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.
J. 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.
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Ed. Note: The most current version of approved forms can be found on the Division of Real Estate website
at: www.dora.state.co.us/dre.
Real estate brokers are required to use Commission-approved forms as appropriate to a transaction or
circumstance to which a relevant form is applicable. Commission-approved forms are posted on the
Division of Real Estate’s website. Effective June 2009, the Commission will no longer post forms in
the Code of Colorado Regulations. The Commission hereby withdraws all forms from the Code of
Colorado Regulations. In instances when the Commission has not developed an approved form within
the purview of this rule, and other forms are used, they are not governed by Chapter 7 of the Rules.
Other forms used by a broker shall not be prepared by a broker, unless otherwise permitted by law.
To obtain the forms promulgated by the real estate commission that are within the purview of Chapter
7, visit the Division of Real Estate website at: http://www.dora.state.co.us/dre or the Division of Real
Estate’s offices at 1560 Broadway, Suite 925, Denver, Colorado 80202.
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The parties to any proceeding as set forth in Chapter 8 of these Rules will be the Commission
and the Petitioner. Any other person may seek leave of the Commission to intervene in such a
proceeding. Permission to intervene will be granted at the sole discretion of the Commission. A
petition to intervene will set forth the same matters as set forth in Rule 8.3.
8.3. Petition Contents
Any petition filed as set forth in Chapter 8 of these Rules will state the following:
A. The name and address of the Petitioner;
B. The statute, rule, or order to which the petition relates;
C. A concise statement of all the facts and law 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; and
D. The Petitioner may submit a concise statement of the declaratory order sought.
8.4. Commission’s Considerations Whether or Not to Rule
The Commission may determine, in its sole discretion and without prior notice to the Petitioner,
whether or not to rule upon a petition. In determining whether or not to rule upon a petition
filed as set forth in Chapter 8 of these Rules, the Commission may 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 the Petitioner of any statutory provision, 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.
C. 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 not involving the Petitioner.
D. Whether the petition seeks a ruling on a hypothetical question.
E. Whether the Petitioner has some other adequate legal remedy, other than an action for
declaratory order which will terminate the controversy or remove any uncertainty as to
the applicability to the Petitioner of the statute, rule, or order in question.
8.5. Commission Determines Not to Rule
If the Commission determines it will not rule on a petition, the Commission will issue its
written decision disposing of the petition, stating the reasons for declining to rule upon the
petition. A copy of the decision will be provided to the Petitioner. A decision not to rule on a
petition for a declaratory order is not final agency action subject to judicial review.
8.6. Commission Determines to Rule
If the Commission determines that it will rule on the petition:
A. The Commission may order the Petitioner to file an additional written brief,
memorandum, statement of position, or request the Petitioner to submit additional facts or
arguments in writing.
B. The Commission may take administrative notice of facts pursuant to the Administrative
Procedure Act, section 24-4-105(8), C.R.S., and may utilize its experience, technical
competence, and specialized knowledge when ruling on the petition.
C. The Commission may set the petition, upon due notice to the Petitioner, for a non-
evidentiary hearing.
D. The Commission may, upon due notice to the Petitioner, set the petition for hearing for
the purpose of obtaining additional facts or information, or to determine the truth of any
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facts set forth in the petition, or to hear oral arguments on the petition. Notice to the
Petitioner setting such formal hearing will set forth, to the extent known, the factual or
other matters into which the Commission intends to inquire. The Petitioner will have the
burden of proving all 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 the Petitioner and any other facts the
Petitioner desires the Commission to consider.
E. Any ruling by the Commission may be based solely on the matters set forth in the petition
or may be based on any amendments to the petition, any information gathered by the
Commission through a non-evidentiary hearing, formal hearing or otherwise, or any facts
the Commission may take administrative notice of. Upon ruling on a petition, the
Commission will issue its written order stating its basis for the order. A copy of the order
will be provided to the Petitioner.
8.7. Declaratory Orders Subject to Judicial Review
Any declaratory order of a petition as set forth in Chapter 8 of these Rules will constitute
agency action subject to judicial review pursuant to section 24-4-106, C.R.S.
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