DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
SUBDIVISIONS
4 CCR 725-6

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
December 2, 2014

CHAPTER 1:	REGISTRATION, CERTIFICATION AND APPLICATION

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 rules titled Rules and Regulations for Subdivision Developers is Part 4 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the state statutes concerning Subdivisions.

SPECIFIC PURPOSE OF THIS RULEMAKING

The purpose of this rule is to amend or repeal existing rules with respect to the registration, certification and application for subdivisions and to ensure that subdivision developers are familiar with all current regulations.

Proposed New, Amended and Repealed Rules

[Deleted material is shown struck through; new material is shown ALL CAPS.] Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Commission at www.dora.state.co.us/real-estate/.

CHAPTER 1:	REGISTRATION, CERTIFICATION AND APPLICATION

1.1	THE REGISTRATION AND CERTIFICATION OF A SUBDIVISION DEVELOPER (DEVELOPER) UNDER TITLE 12, ARTICLE 61, PART 4, C.R.S., DOES NOT EXEMPT THE DEVELOPER FROM THE REQUIREMENTS FOR THE LICENSING OF REAL ESTATE BROKERS UNDER TITLE 12, ARTICLE 61, PART 1, C.R.S. EXEMPTIONS FROM THE LICENSING OF REAL ESTATE BROKERS ARE MADE PURSUANT TO § 12-61-101(2)(B), C.R.S.

1.2	THE PERSON, FIRM, PARTNERSHIP, JOINT VENTURE, LIMITED LIABILITY COMPANY, ASSOCIATION, CORPORATION OR OTHER LEGAL ENTITY, OR COMBINATION THEREOF, WHO WILL SIGN AS SELLER OR LESSOR IN ANY CONTRACT OF SALE, LEASE, DEED OR ANY OTHER INSTRUMENT PURPORTING TO CONVEY ANY SITE, TRACT, LOT, DIVIDED OR UNDIVIDED INTEREST FROM A SUBDIVISION, MUST SECURE A REGISTRATION UNDER § 12-61-403, C.R.S., (DEVELOPER CERTIFICATE) BEFORE NEGOTIATING OR AGREEING TO SELL, LEASE OR TRANSFER AND BEFORE ANY SALE, LEASE OR TRANSFER IS MADE. IF SUCH PERSON IS ACTING ONLY AS A TRUSTEE, THE BENEFICIAL OWNER OF THE SUBDIVISION MUST SECURE A DEVELOPER CERTIFICATE.

1.3        IF AN APPLICANT IS:  

A.   A CORPORATION, A DIRECTOR OR AN AUTHORIZED OFFICER MUST APPLY ON                   
       BEHALF OF SAID CORPORATION.
B.   A PARTNERSHIP OR LIMITED PARTNERSHIP, ONE OF THE GENERAL PARTNERS   
       MUST APPLY ON BEHALF OF THE PARTNERSHIP OR LIMITED PARTNERSHIP.
             C.   A JOINT OWNER OF THE SUBDIVISION, SUCH OWNER MAY APPLY ON BEHALF  
                    OF ALL JOINT OWNERS OF SUCH SUBDIVISION.
D.   A LIMITED LIABILITY COMPANY, ONE OF THE MANAGERS OR MEMBER- 
       MANAGERS MUST APPLY ON BEHALF OF THE COMPANY.
E.   WITH RESPECT TO ANY OTHER TYPE OF DEVELOPER THAT IS OTHER THAN A  
       NATURAL PERSON, A PERSON AUTHORIZED TO ACT ON BEHALF OF SUCH  
       ENTITY, AS DEMONSTRATED BY SUCH DOCUMENTS IN A FORM   
       SATISFACTORY TO THE COMMISSION, WILL APPLY ON BEHALF OF THAT  
       ENTITY.   
                                                                          
1.4	THE REAL ESTATE COMMISSION (COMMISSION) WILL ISSUE A DEVELOPER CERTIFICATE, DENY REGISTRATION OR DEMAND FURTHER INFORMATION WITHIN SIXTY (60) CALENDAR DAYS FROM THE DATE OF RECEIPT OF THE APPLICATION BY THE COMMISSION.

1.5	IF THE COMMISSION REQUIRES ADDITIONAL INFORMATION, THE COMMISSION WILL GIVE WRITTEN NOTICE IN DETAIL OF THE INFORMATION SO REQUIRED AND WILL ALLOW AN ADDITIONAL SIXTY (60) CALENDAR DAYS TO PRESENT SUCH MATERIAL BEFORE DENIAL OF THE APPLICATION, WHICH PERIOD MAY BE EXTENDED ONLY UPON SHOWING OF GOOD CAUSE.

1.6	NOTIFICATION IN WRITING MUST BE MADE TO THE COMMISSION WITHIN TEN (10) CALENDAR DAYS OF ANY CHANGE IN THE PRINCIPAL OFFICE ADDRESS OF THE DEVELOPER OR THE NATURAL PERSON, OR ANY OTHER CHANGE IN THE INFORMATION SUBMITTED PURSUANT TO § 12-61-403, C.R.S.

1.7	PURSUANT TO § 12-61-405, C.R.S., ANY  DEVELOPER WHO HAS RECEIVED WRITTEN NOTIFICATION FROM THE COMMISSION THAT A COMPLAINT HAS BEEN FILED AGAINST THE DEVELOPER, MUST SUBMIT A WRITTEN ANSWER TO THE COMMISSION WITHIN A REASONABLE TIME AS SET BY THE COMMISSION.

1.8		FAILURE TO SUBMIT ANY WRITTEN RESPONSE REQUIRED BY RULE 1.7 WILL BE GROUNDS FOR DISCIPLINARY ACTION UNLESS THE COMMISSION HAS GRANTED AN EXTENSION OF TIME, OR UNLESS SUCH ANSWER WOULD SUBJECT SUCH PERSON TO A CRIMINAL PENALTY.

A hearing on the above subject matter will be held on Tuesday, December 2, 2014, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250-C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.
Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.