Colorado Real Estate Commission
Notice of Proposed Rulemaking
For Rulemaking Hearing to be held on August 7, 2007

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Real Estate Commission (the “Commission”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Commission.

STATEMENT OF BASIS

The statutory basis for the adoption of these rules regarding real estate brokers and salespersons is Parts 1 and 8 of Title 12, Article 61 C.R.S. The specific rulemaking provisions contained therein are sections 12-61-114(4) and 12-61-110.5(5), C.R.S.

STATEMENT OF PURPOSE

The purpose of these rules is to amend rule F-1 regarding the permitted and prohibited modifications to Commission-approved forms, to amend rule F-7 regarding the mandatory use of standard and approved forms, to add new mandatory forms and to amend existing mandatory forms.

Proposed New, Amended and Repealed Rules

[Deleted material in the body of the rules is shown struck through, new material in the body of the rules is shown ALL CAPS. Rules, or portions of rules, which are unaffected are not reproduced.  New forms and existing forms with changes are attached. Changes to existing forms are shown on the forms. Unaffected forms are not reproduced. Readers are advised to obtain a copy of the complete rules of the Commission at www.dora.state.co.us/real-estate ]

THE PROPOSED AMENDED RULES:
DEPARTMENT OF REGULATORY AGENCIES 
DIVISION OF REAL ESTATE 
COLORADO REAL ESTATE COMMISSION 

Rule F – Use of Commission Approved Forms

F-1.	Permitted and Prohibited Form Modifications 
(a)	No modifications shall be made to a Commission-approved form by a broker except as provided in rules promulgated by the Commission and as set forth in this Rule F-1 through F-7. For purposes of Rule F-1 through F-7, the term “Commission-approved form” means any form promulgated by the Commission; the term “broker” shall also include brokerage firm. 
(b)	A broker may add its firm name, address, telephone, e-mail, trademark or other identifying information on a Commission-approved form. 
(c)	Any deletion to the printed body of a Commission-approved form, or any “Additional Provision” or “Addenda” which by its terms serves to amend or delete portions of the approved language, must result from negotiations or the instruction(s) of a party to the transaction and must be made directly on the printed body of the form by striking through the amended or 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 applicable data or information. 
(e)	Provisions that are inserted into blank spaces must be printed in a style of type that clearly differentiates such insertions from the style of type used for the Commission-approved form language. 
(f)	A broker may omit part or all of the following provisions of the “Contract to Buy and Sell Real Estate”, or corresponding provisions in other Commission-approved forms, if such provisions do not apply to the transaction. In the event any provision is omitted, the provision’s caption or heading must remain unaltered on the form followed by the words “OMITTED”. 
	1.	Section 3.1 Inclusions in its entirety or any of its subsections.
	2.	Sections 4.3 Seller Concessions; 4.4 New Loan in its entirety or any of its subsections; 4.5 Assumption; and 4.6, Seller or Private Financing3.	Section 5 Financing Conditions and Obligations in its entirety or any of its subsections 
4.	Section 6 APPRAISAL PROVISIONS in its entirety or any of its subsections 
5.	Section 7.4 Common Interest Community Governing Documents 
6.	Section 8.6 Right of First Refusal or Approval 
7.	Section 9 Lead-Based Paint 
8.	Section 10.7 Source of Potable Water9.	Sections 15.5, Status and Transfer Letter Fees; 15.5 Status Letter and Transfer Fees; 15.6, Local Transfer Tax; and 15.7g, Sales and Use Tax.
10.	Section 16.2 Rents
11.	Section 16.3 Association Assessments 
(g)	A broker may add an additional page to the “Contract to Buy and Sell Real Estate”, “Counterproposal” and the “Agreement to Amend/Extend Contract”, following such document, that contains the dates and deadlines information set forth in §2.3, arranged in chronological date sequence.
(h)	A broker may omit 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 omitted, the provision’s caption or heading must remain unaltered on the form followed by the words “OMITTED”.
1.Section 2.3 Dates and Deadlines table 
2. Section 4 Purchase Price and Terms [in the Counterproposal only]

(i)	A broker may substitute the term “Landlord” for the term “Seller” and the term “Tenant” for the term “Buyer” in the Brokerage Disclosure to Buyer form, in the Brokerage Disclosure to Seller and Definitions of Working Relationships form when making disclosures in a lease transaction.

F-7 Commission Approved Forms 
Real estate brokers are required to use Commission-approved forms as appropriate to a transaction or circumstance to which a relevant form is applicable. 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 Rule F. Other forms used by a broker shall not be prepared by a broker, unless otherwise permitted by law. 

Forms with a 2007 adoption date may be used as of October 30, 2007 and are mandatory January 1, 2008.

The following are the forms promulgated by the real estate commission and are within the purview of Rule F: 
Listing Contracts 
7.1 Exclusive Right-to-Sell Listing Contract (All Types of Properties) LC50-10-06 
7.2 Exclusive Right-to-Buy Contract (All Types of Properties) BC60-04-05 
7.3 Exclusive Brokerage Listing Contract (All Types of Properties) LC53-10-06 
7.4 Open Listing Contract (All Types of Properties) LC54-10-06
7.5 Exclusive Right-to-Lease Listing Contract (All Types of Property) LC57-10-06
7.6 Exclusive Tenant Contract (All Types of Premises) ETC59-10-05 
Sales Contracts 
7.7 Contract to Buy and Sell Real Estate (All Properties) CBS1-8-07  
Addenda to Contracts 
7.8 Licensee Buy-Out Addendum to Contract to Buy and Sell Real Estate (see footnote # 2) 
LB36-8-07 	 
7.9 Source of Water Addendum to Contract to Buy and Sell Real Estate SWA35-8-07
7.10 Inspection Notice NTC43-08-07 
7.11 Exchange Addendum to Contract to Buy and Sell Real Estate EX32-05-04 
7.12 Lead-Based Paint Disclosures (Sales) LP45-05-04 
7.13 Lead-Based Paint Disclosures (Rentals) LP46-05-04
7.14 Brokerage Duties Addendum to Property Management Agreement BDA55-0405 
7.15 Foreclosure Property Addendum FPA 33-8-07
7.16 Notice to Cancel NC34-10-06
Disclosure Documents 
7.17 Brokerage Disclosure to Buyer/Tenant (see footnote # 3) BD24-10-06-
7.18 Brokerage Disclosure to Seller (REO and Non-CREC Approved Listings) BDD56-10-05 
7.19 Broker Disclosure to Seller (Sale by Owner) (see footnote # 3) SD16-05-04 
7.21 Definitions of Working Relationships (see footnote # 3) DD25-05-04 
7.22 Seller's Property Disclosure (All Types of Properties) SPD19-8-07 
7.23 Change of Status CS23-10-06 
7.24 Square Footage Disclosure SF94-05-04 

Counterproposal 
7.26 Counterproposal CP40-8-07 
Agreement to Amend/Extend Contract 
7.27 Agreement to Amend / Extend Contract AE41-8-07 
7.28 Agreement to Amend / Extend Contract with Broker AE42-05-04
Closings 
7.29 Closing Instructions CL8-8-07
7.30 Earnest Money Receipt EM9-8-07
7.31 Statement of Settlement (see footnote # 1) SS60-05-04 
Deeds of Trust 
7.32 Deed of Trust (Due on Transfer-Strict) TD72-10-06 
cc) Deed of Trust (Due on Transfer-Credit worthy Restriction) TD73-10-06 
cc) Deed of Trust (Assumable-Not Due-on-Sale) TD74-10-06 
Promissory Notes 
ee) Earnest Money Promissory Note EMP80-05-04 
ff) Promissory Note for Deed of Trust (UCCC-No Default Rate) NTD82-10-06 
gg) Promissory Note for Deed of Trust NTD81-10-06 

Optional Forms (Not Mandatory) 
Worksheet for Real Estate Settlement SS61-05-04 
Real Property Transfer Declaration TD-1000 
Earnest Money Release EMR83-05-04 
Common Interest Community Checklist for Brokerage Firm CICC-05-04 
Listing Firm’s Well Checklist 
Colorado Statutory Power of Attorney for Property Form 
Lead Based Paint Obligations of Seller LP47-05-04 
Lead Based Paint Obligations of Landlord LP48-05-04 
Footnotes: 
(1) In lieu of using this form, Brokers may, use a statement of settlement that is in full compliance with Rule E-5. 
(2) This form is to be used when a broker enters into a contract to purchase a property either: (a) concurrent with the listing of such property; or (b) as an inducement or to facilitate the property owner’s purchase of another property; or (c) continues to market that property on behalf of the owner under an existing listing contract. 
(3) It shall be permissible to use the language in a format approved by the Commission, or in a format applicable to the broker’s written office policy. The broker may, in addition to the required brokerage disclosure form, use the document, Definitions of Working Relationships. 

A hearing on the above subject matter will be held on Tuesday, August 7, 2007, at the Colorado Division of Real Estate, 1560 Broadway, Suite 925, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rulemaking through submission of written data or arguments to the Colorado Real Estate Commission. Persons are requested to submit data, views and arguments to the Commission in writing no less than ten days (10) days prior to the hearing date and time set forth above. 

The Colorado Real Estate Commission will consider all submissions.

Please be advised that all rules being considered are subject to further changes and modifications after public comment and formal hearing.