What services, duties, and obligations must a broker, licensed in Colorado, provide to sellers and buyers? In response to inquiries from the public and brokers, the Colorado Real Estate Commission has issued CP-36 Commission Position on Minimum Service Requirements, which is available on the website of the Division of Real Estate. CP-36 has been the subject of much discussion in the real estate industry, so it is important to clearly understand the message from the Commission.
CP-36 states that Colorado statutory law imposes minimum duties on every Colorado broker who serves as a transaction broker or agent for a seller (landlord) or buyer (tenant), as follows:
- the minimum duties for an agent working for a seller (landlord) are at C.R.S. §12-61-804;
- the minimum duties for an agent working for a buyer (tenant) are at C.R.S. §12-61- 805; and
- the minimum duties for a transaction broker working for a seller (landlord) or buyer (tenant) are at C.R.S. §12-61-807.
Please consult these statutory lists of minimum duties, but note that the minimum duties imposed on all licensed brokers include presenting offers and counteroffers. In the case of agents, brokers must counsel on the benefits and risks of transactions and, in the case of transactions, brokers must advise on the transaction.
CP-36 also restates Colorado statutory law, which permits brokers to agree in writing to perform duties in addition to those set forth in C.R.S. §12-61-803, such as listing the property in a multiple listing service or other information exchange. The Colorado statutes do not permit brokers to perform less than the statutory duties. Moreover, the position statement clearly states that a broker in Colorado is not allowed to only perform additional duties, because the law requires that all of the minimum duties must be performed as well.
If there was any question on minimum service in Colorado, the Commission has clarified that, regardless of the level of fee to be charged, a broker must perform all of the minimum duties and obligations set forth by the State Legislature in the Brokerage Relationships Act, C.R.S. § 12-61-801, et seq. The Colorado Real Estate Commission does not regulate what listings can or cannot be put into an MLS.
Should you have questions about the duties of a broker and CP-36, you should consult legal counsel for advice regarding applicable Colorado and federal laws.