Colorado Real Estate Law Overview

Fair Housing Laws

• Colorado Fair Housing laws protect additional classes: sexual orientation, marital status, ancestry, creed, and disability.
• Federal Fair Housing Act recognizes seven protected classes; Colorado adds three for a total of ten.
• Since August 3, 2007, sexual orientation and gender identity were added as protected classes under the Colorado Anti-Discrimination Act in employment and housing.

Power of Attorney in Real Estate

• Colorado Real Estate Commission's Power of Attorney form creates a limited agency agreement.
• This agreement allows a designated person to sign on behalf of another in real estate transactions but does not provide broader legal authority.

Earnest Money Delivery

• Earnest money is typically delivered with the contract or by the Alternative Earnest Money Deadline if not submitted initially.
• Specific timing is crucial for compliance with contract terms.

Settlement Sheet Tax Deductions

• Unpaid taxes at closing (e.g., $1127) are debited to the seller and credited to the broker for payment to the county.
• Correct accounting on the settlement sheet is vital to reflect these financial obligations accurately.

Water Bill Proration

• For a $175 water bill paid in advance, the prorated amount at closing (e.g., $13.31) is credited to the seller and debited to the buyer for the unused portion after the closing date.

FHA Loans and Discount Points

• A discount point cost of 3% on an $80,000 FHA loan totals $2,400.
• Understanding loan charges is crucial for assessing overall borrowing costs.

Licensing and Expiration

• New real estate licenses expire on December 31st of the issuance year but are renewable every three years.
• Knowledge of license renewal timelines is essential for compliance.

Federal Income Tax Liens

• Federal income tax liens are subordinate to all prior recorded liens, impacting real property transactions.

Commission in Listings

• Under an open listing, if the seller accepts an offer from a buyer found by another broker, both brokers are entitled to commissions.
• The type of listing and its terms dictate commission obligations.

Settlement Statement Entries

• Seller's proceeds on a settlement sheet are ultimately a debit to the seller, affecting the overall transaction balance.

Seller Responsibilities Before Closing

• If a listed item (like an oven) malfunctioned before closing, the seller may replace it with a similar working item, not necessarily a new one.

Notification and Contract Procedures

• In contract handling, if rejected, sellers should not sign the offer; clear notification to buyers is essential.
• Notifications related to contracts must be legally delivered either to the party or the associated broker.

Real Estate License Requirements

• Only certain roles, such as property managers or brokers, require a real estate license in Colorado; rental referral agents do not.

Colorado Statute of Frauds

• Enforces that contracts for property sales must be in writing, ensuring enforceability.

Brokerage Relationships

• Under Colorado law, sellers' agents cannot disclose adverse psychological impacts about properties (e.g., past events affecting the property's reputation).

Activities of Unlicensed Assistants

• Unlicensed assistants may conduct open houses but cannot engage in activities requiring a license, such as drafting contracts or receiving commissions.

Licensee Representation

• A real estate licensee can only represent the broker they are licensed under, affecting client relationships and representation limits.

This quiz covers key aspects of Colorado real estate laws, including Fair Housing laws, Power of Attorney in real estate, earnest money procedures, and settlement sheet tax deductions. It emphasizes the unique protections added by Colorado to federal legislation and important local practices.