As we approach the license renewal season, there are two compliance items that you need to remember in order to keep practicing into the new year.


Insurance and Bonds

All of the professions regulated by the Division of Real Estate, except subdivision developers and appraisal management companies, are required to have errors and omissions (“E&O”) insurance. For real estate brokers, mortgage loan originators, and real estate appraisers, the Division is required by law to contract with an insurer for a group policy. You are not required to procure your coverage from the group insurer, but you do need to ensure that the coverage you obtain from a different insurer meets the limits set by the applicable board or commission rule. You also need to be aware that depending on the activities that you are engaged in, e.g. property management, an additional rider to the base coverage may be necessary. Most E&O policies expire on December 31st. If you fail to renew your insurance, the Division does conduct E&O audits to prevent uninsured professionals from practicing licensed duties. If we discover that you do not have an active policy, your license will be placed on inactive status. Depending on the type of license, you may be charged a fee to activate your license and you will be required to show proof of insurance coverage. In addition to E&O insurance, mortgage loan originators are required to have a surety bond in compliance with Board Rule 2.19. Community Association Managers are required to have crime fidelity insurance that meets the requirements of Director Rule D-10. Appraisal Management Companies must post a $25,000 surety bond with the Board of Real Estate Appraisers.

Continuing Education

Prior to renewing your license, you are required to complete the mandatory continuing education (“CE”). If you are a real estate broker, you are required to complete 24 hours of CE per license cycle. If your broker’s license is on a transitional cycle, i.e. less than three years, you are required to complete two Commission Update Courses. If you have a full three-year license cycle, you must complete three Commission Update Courses. There are alternatives to the 24 hours of CE. You may be eligible to complete the 24-hour Broker Reactivation Course. If you’re considering this option, you need to verify that you meet one of the two criteria specified in Rule B-2(b). You can take and pass the state portion of the licensing exam. The last alternative is to complete 72-hours of pre-licensure education on contracts (48 hours) and real estate closings (24 hours). The Division audits 10% of the active real estate broker population annually, and the audits are done on a quarterly basis. If we discover noncompliance with the CE requirements, we will assess a fine.

Appraisers are required to complete 28 hours of CE per license cycle, to include one 7-hour National USPAP Update Course once every two calendar years. If you are an appraiser, you are required to submit proof that you have completed one 7-hour National USPAP Update Course during your two-year license cycle before you will be allowed to complete the renewal process. If you wait until late December to complete your 7-hour National USPAP Update Course, you run the risk of not being able to renew your license prior to December 31st. We audit the entire population of renewing appraisers for USPAP compliance, so the earlier you can demonstrate compliance with the USPAP audit, the earlier you are able to renew. In February, we audit 15% of the recently renewed appraiser population for CE compliance as required by the Appraisal Subcommittee’s regulations. If we discover that you don’t have the mandatory CE or the 7-hour National USPAP Update Course, we will assess a fine.

If you are a mortgage loan originator, you are required to complete 8 hours of CE annually. One hour of the CE must be Colorado specific education. At the time of renewal, you will need to first renew on the National Mortgage Licensing System and Registry (“NMLS”). Your CE compliance will be reviewed at this time. If you do not have 8 hours of CE, you will not be allowed to renew your license on the NMLS until you have 8 hours of CE. Once the NMLS renewal is completed, you will then need to renew your license through the Division’s eLicense system.

Finally, if you are a community association manager, you are required to either complete 8 hours of CE or successfully pass the Colorado law portion of the CAM examination. 30% of the active community association managers are audited for CE compliance annually. If we discover that you are not compliant with your CE requirements, we will assess a fine. It is important to remember that the Legislature chose not to continue the community association manager program, so regulation of this professional license will conclude on June 30, 2019.


Director Marcia Waters