Real Estate Commission compliance is once again a hot topic; partly because of the flood of new owners and property management companies coming to Colorado; and partly driven by the Colorado Real Estate Commission’s step-up of enforcement efforts. Due to budget cuts and political considerations, the Real Estate Commission (the “Commission”) had stopped random audits for a number of years. Since property management is one of the leading sources of complaints received by the Commission, the Commission has recently reinstated random audits as part of its proactive and stepped up enforcement efforts. As a result of the complaints received, the Commission considers property management to be a complex area of practice. A blog cannot address the complexity of the Commission regulatory scheme. However, we can answer some of the most common questions client ask.
Do we need a Colorado Real Estate Broker’s License, is by far the most common question we are asked. The quick answer to this question is straightforward. If you own the property you manage, you do not need a broker’s license. This is commonly referred to as the “owners’ exemption”. If you third party fee manage, you need a license. The question is not complicated for fee managers. Fee managers must be licensed. Whether an ownership and management relationship meets the owners’ exemption can be extremely complicated.