Download 4 ccr 725-1 rules regarding real estate brokers and salespersons 1

[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
REAL ESTATE BROKERS
4CCR 725-1
E-4 Document Preparation and Duplicates Revisions
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Authority
Scope and Purpose
Applicability
E-4 Document Preparation and Duplicates Revisions
Enforcement
Effective Date
Section 1.
Authority
The statutory basis for the adoption of this rule regarding real estate brokers is Part 1 of
Title 12, Article 61 C.R.S. The specific rulemaking provisions contained therein are
sections 12-61-114(4) and 12-61-114.5, C.R.S.
Section 2.
Scope and Purpose
Commission Rule E-5 (b) specifically requires the accuracy of closing statements and the
itemization of all adjustments, money, or things of value received or paid that are a result
of the transaction.
The purpose of this rule is to ensure full and accurate disclosure, in the contracting
instrument, of all terms of the transaction including the itemization of all adjustments,
money, or things of value received or paid. By requiring all terms of the transaction to
be accurately reflecting in the contracting instrument, lending institutions as well as
parties to the contract can make informed decision based on the specific and accurate
terms of the contract.
Section 3.
Applicability
This rule applies to real estate brokers licensed by the Colorado Real Estate Commission.
Section 4.
E-4 Document Preparation and Duplicates Revisions
E-4 Document Preparation and Duplicates Revisions
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Contracting instruments for all real estate or business opportunity transactions in which a
real estate broker participates, including agency and sales contracts, shall 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 contracting
document shall be disclosed in an amending instrument. For the purpose of this rule, the
term “things of value” shall include monetary considerations as well as the exchange of
tangible, non-monetary assets.
A real estate broker shall immediately deliver a duplicate of the original of any
instrument (except deeds, notes and trust deeds or mortgages, prepared by and for the
benefit of third party lenders) to all parties executing the same when such instrument has
been prepared by the broker or the broker’s employed licensee or closing entity and
relates to the employment or engagement of the broker or pertains to the consummation
of the leasing, purchase, sale or exchange of real property in which the broker may
participate as a broker. For purposes of this rule, duplicate shall mean legible photocopy,
carbon copy, facsimile, or electronic copies which contain a digital or electronic signature
as defined in 24-71-101(1) C.R.S. Such broker shall retain a copy of the duplicate
instruments for future use or inspection by an authorized representative of the Real Estate
Commission. If a broker or the broker’s agent prepares a mortgage or trust deed for the
benefit of a buyer or seller, an unsigned duplicate of such security instrument, together
with a copy of the note, unsigned or prominently marked “copy,” shall be furnished to the
purchaser; copies shall also be retained in such broker’s office for further use or
inspection by an authorized representative of the Real Estate Commission. Cooperating
brokers, including brokers acting as agents for buyers in a specific real estate transaction,
shall have the same requirements for retention of copies as stated above, except that a
cooperating broker who is not a party to the listing contract need not retain a copy of the
listing contract or the seller’s settlement statement. Pursuant to Rule E-3, a broker is not
required to obtain and retain copies of existing public records, title commitments, loan
applications, lender required disclosures or related affirmations from independent third
party closing entities after the settlement date.
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[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
Section 5.
Enforcement
1. Noncompliance with this rule, whether defined or reasonably implied in the
rule, may result in the imposition of any of the sanctions allowable under
Colorado law.
Section 6.
Effective Date
This rule shall be effective April 30, 2009.
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