Updating Colorado agents or what I learned in a 4 hour CE class today

Today I attended one of the first CREC update classes available. If you don't have to or weren't planning on attending one of these classes before the end of the year I highly (HIGHLY) recommend doing so. Also the newest hard copy of the 2008 Manual of Real Estate in Colorado does NOT contain most of the updated information. The online version is current.

The Colorado Contracts are changing in a big BIG way. Things to look for include :

• 1) Foreclosure Protection Act
• 2) Foreclosure Procedures Revisions
• 3) Mortgage Broker Regulation
• 4) Affiliated Business Arrangements
• 5) Common Interest Communities
• 6) Methamphetamine Labs
• 7) RESPA
• 8) Source of Water
• 9) Proving lawful presence in the United States

The Foreclosure Property Addendum to Contract to Buy and Sell Real Estate will primarily be used by lawyers. You will hear the word unconscionable acts used often. And for curious people as of July 2007 Colorado is ranked #5 in foreclosures in the country and Greeley is the #1 city. Greeley is also #1 in Methamphetamine labs - and you thought it was the cows!

As of Jan 1, 2008 (SB 07-203) prescribes at least 9 hours of pre-license mortgage fundamentals education, a pre-license exam and not mor than 9 hours of CE over a three-year license period. Also Dual Status of mortgage brokers and real estate brokers.

Every licensee will have to disclose Affiliated business arrangements including if you have none.  Appendix D to Part 3500  http://www.dora.state.co.us/real-estate/

The common interest communities has gone thru 5 revisions. Look for changes on the property disclosure forms. And by the way every property currently listed or listed after Jan 1, 2008 will need a new property disclosure form, even if you have an old one in your files.

Methamphetamine Labs (SB 06-002) The buyers inspection must be done by an Industrial hygienist or a certified industrial hygienist. (C.R.S.24-30-1302) The buyer is not obligated to cancel the contract. The buyer may stay in the contract and the seller has 30 days to conduct a 2^nd independent test. The seller is NOT required to disclose known prior meth lab us AT ALL. If the property was remediated to the standards in Colorado Law and proof of such cleanup was received by the governing body.

RESPA - Section 8-2607 prohibits against kickbacks and unearned fees. Colorado laws differ.

New Law - Source of Water (HB 07-1156) The new water disclosure is applied to EVERY RESIDENTIAL listing contract, purchase contract and sellers property disclosure. Section 10.7 on the new contracts addresses the "SOURCE OF POTABLE WATER) #######Yep - you're in Colorado! #########

New Law - Licenses only to lawfully present persons (HB 065-1009) This statue stipulates that any Department of Regulatory agencies Division may issue or renew a license only to persons lawfully present in the United States. This statue also covers licenses, permits, certificate or authorizations to conduct business issued by counties or municipalities.

Also the current contracts use a number and letter system 4A, 4B etc... the new contracts use just a numerical system 4.1, 4.2 etc... so all commission approved forms have been revamped to match including amend / extends and counterproposals.

Section 4 Purchase Price and Terms is soooooooooo much better. Seller concessions now leaves one blank space for a dollar amount to reflect closing costs, loan discount points, loan origination fees, prepaids items including amounts for FHA, CHFA, VA. **********Yippee! No more TBD's! ************

According to the instructor today Colorado is the third most difficult state and requires more education than other states. California and Texas require more seat time. (Colorado requires 160 hours and upon passing the state exam all are Brokers.)

The attachment part of the contract is now Section 26 under additional provisions. Usually disclosures are not treated as attachments. That would primarily be reserved for addenda such as additional builder agreements and inventory lists.

And the contracts have grown from 12+ pages to 16+ pages. Closing instructions are now part of the contract - but these have been revised since 1/3 of the information is in the contract.

The Earnest Money receipt is now a separate page.

The property disclosure no longer uses the phrase "to the Sellers current actual knowledge.." now it says "do any of the following conditions now exist or have they ever existed"

As of Jan 1, 2008 there is a new licensee Buy-Out addendum so buy-buy-buy!

What else?????????????????

Conservation Easements : There is significant market for sale of tax credits in Colorado, generally at about 80% of the tax credit value. Each year in Colorado the volume of tax credit sales are from 40-50 Million $$$$$$$$$$ Expect to see new forms standardizing proper disclosures. (HB 07-1361) will help prevent owners from making false claims of owning Conservation easements (property)

Mineral Rights - 70% or more of the mineral rights in Colorado are severed from the land. Buyers looking for mineral rights should consult a qualified real estate attorney.