Reporting Requirements for Criminal Convictions or Actions Taken in Other Jurisdictions
Have you been convicted or plead guilty to a crime? Have you been disciplined in
another jurisdiction? While these seem like circumstances that are uncommon, we
unfortunately have quite a few licensees that have experienced these two types of
issues. Depending on the circumstances, a criminal conviction or plea may be a violation
of the practice act. Having a professional license disciplined in another jurisdiction may
also subject you to discipline in Colorado. If you fail to report a criminal conviction or
plea, or the professional license discipline, that can add to the problems that you may
have with the respective regulatory board here. This article will explain your reporting
requirements so that you can hopefully avoid additional issues with one of our boards.
Criminal Convictions
Many people are confused about what type of crimes must be reported to the Division
once a plea, deferred judgment or sentence, or conviction has been entered. It is not
isolated to felonies.
Real Estate Brokers are required to report any convictions, pleas of guilt or nolo
contendere (no contest), deferred judgments or sentences for the following crimes:
1. Offenses against a person: this includes homicide and related offenses, assault,
kidnapping, unlawful sexual behavior, human trafficking and slavery, and
stalking. (See Article 3 of Title 18 of the Colorado Revised Statutes)
2. Offenses against property: this includes arson, burglary and related offenses,
robbery, and theft. (See Parts 1-4 of Article 4 of Title 18 of the Colorado Revised
Statutes)
3. Offenses involving fraud: this includes forgery, simulation, impersonation, and
related offenses; fraud in obtaining property or services; fraudulent and
deceptive sales and business practices; bribery and rigging of contests; offenses
relating to the uniform commercial code; financial transaction device crimes;
equity skimming and related offenses; and identity theft and related offenses.
(See parts 1-5, 7-9 of Article 5 of Title 18 of the Colorado Revised Statutes)
4. Computer crimes. (See Article 5.5 of Title 18 of the Colorado Revised Statutes)
5. Offenses involving family relations. (See Parts 3, 4, 6-8 of Article 6 of Title 18 of
the Colorado Revised Statutes)
6. Offenses relating to morals. (See Parts 1, 3-8 of Article 7 of Title 18 of the
Colorado Revised Statutes)
7. Governmental operations, specifically bribery and corrupt influences. (See Part
3 of Article 8 of Title 18 of the Colorado Revised Statutes)
8. Crimes related to making, financing or the collection of loans. (See Article 15 of
Title 18 of the Colorado Revised Statutes)
9. The Colorado Organized Crime Control Act. (See Article 17 of Title 18 of the
Colorado Revised Statutes)
10.Offenses relating to controlled substances (See 18-18-404, 18-18-405, 18-18-406,
18-18-411, 18-18-412.5, 18-18-412.7, 18-18-412.8, 18-18-415, 18-18-416, 18-18-
422, or 18-18-423 of the Colorado Revised Statutes)
11.Any other like crime under Colorado law, federal law, or the laws of other states.
A plea or conviction to the above crimes are grounds for the Commission to discipline a
license. Rule 6.23 requires that a real estate broker notify the Commission of a plea or
conviction within thirty (30) calendar days. Failure to timely report a plea or conviction
usually results in additional discipline being imposed by the Commission.
Real Estate Appraisers are required to report any felony convictions, or pleas of guilt
or nolo contendere that is related to the ability to act as a real property appraiser.
Appraisers are also required to report any conduct that would be grounds for the denial
of a license or certification, which includes criminal convictions, including deferred
judgments and sentences. Because this language is broad, a licensee should err on the
side of caution and report any criminal conviction, plea, or deferred judgment and
sentence to the Board of Real Estate Appraisers. Rule 13.7 requires that a licensee
report a conviction or plea to the Board within ten (10) days. A plea or conviction is
grounds for the Board to discipline a license, but they may impose additional discipline
if timely reporting is not made.
Appraisal Management Companies are required to report any misdemeanor or felony
convictions, or pleas (including Alford pleas) that relate to the conduct of an appraisal,
theft, embezzlement, bribery, fraud, misrepresentation, or deceit, or any other like
crime under Colorado law, federal law, or the laws of other states. The reporting
requirements apply to the Controlling Appraiser and any individual who owns more than
ten (10) percent of the appraisal management company. Rule 13.7 requires that the
Board be notified of the conviction or plea within ten (10) days. A plea or conviction is
grounds for the Board to discipline a license, but they may impose additional discipline
if timely reporting is not made.
Mortgage Loan Originators are required to report any convictions or pleas to the
following crimes:
1. Offenses against a person: this includes homicide and related offenses, assault,
kidnapping, unlawful sexual behavior, human trafficking and slavery, and
stalking. (See Article 3 of Title 18 of the Colorado Revised Statutes)
2. Offenses against property: this includes arson, burglary and related offenses,
robbery, and theft. (See Parts 1-4 of Article 4 of Title 18 of the Colorado Revised
Statutes)
3. Offenses involving fraud: this includes forgery, simulation, impersonation, and
related offenses; fraud in obtaining property or services; fraudulent and
deceptive sales and business practices; bribery and rigging of contests; offenses
relating to the uniform commercial code; financial transaction device crimes;
equity skimming and related offenses; and identity theft and related offenses.
(See Article 5 of Title 18 of the Colorado Revised Statutes)
4. Governmental operations, specifically bribery and corrupt influences. (See Part
3 of Article 8 of Title 18 of the Colorado Revised Statutes)
5. Crimes related to making, financing or the collection of loans. (See Article 15 of
Title 18 of the Colorado Revised Statutes)
6. The Colorado Organized Crime Control Act. (See Article 17 of Title 18 of the
Colorado Revised Statutes)
7. Any other like crime under Colorado law, federal law, or the laws of other states.
In addition to being able to impose discipline for any of the above convictions or pleas,
the Board of Mortgage Loan Originators may also deny, refuse to renew, or revoke a
license if an applicant or licensed mortgage loan originator has been convicted of or
pleaded to a crime involving fraud, deceit, material misrepresentation, theft, or the
breach of a fiduciary duty within the last five years. Additionally, the board must deny,
refuse to renew, or revoke a licensee when an applicant or licensee has been convicted
or pleaded to a felony in a domestic, foreign, or military court if the felony involved an
act of fraud, dishonesty, breach of trust, or money laundering; or been convicted of or
pleaded to a felony within the immediately preceding seven years. Rule 5.23 requires
a mortgage loan originator to report any of the aforementioned convictions or pleas to
the Board within thirty (30) calendar days. Failure to make timely disclosure to the
Board may result in additional discipline being imposed against a license.
Professional License Discipline
Real Estate Brokers can have their licenses disciplined by the Commission if they have
had the following types of professional license discipline:
1. A real estate broker’s or a subdivision developer’s license suspended or revoked
in any jurisdiction.
2. Had any disciplinary action taken against the broker’s or subdivision developer’s
license in any other jurisdiction if the broker’s or subdivision developer’s actions
would constitute a violation of the license law in Colorado.
3. Within the last five years, had a license, registration, or certification issued by
Colorado or another state revoked or suspended for fraud, deceit, material
misrepresentation, theft, or the breach of a fiduciary duty, and such discipline
denied the person authorization to practice as:
a. A mortgage broker or mortgage loan originator;
b. A real estate broker or salesperson;
c. A real estate appraiser;
d. An insurance producer;
e. An attorney;
f. A securities broker-dealer;
g. A securities sales representative;
h. An investment advisor; or
i. An investment advisor representative
Rule 6.23 requires that a real estate broker notify the Commission within thirty (30)
calendar days if the above professional license discipline has occurred. Failure to notify
the Commission may result in additional discipline being imposed against the license.
Real Estate Appraisers can have their licenses disciplined by the Board of Real Estate
Appraisers if they have been the subject of an adverse or disciplinary action in another
state, territory, or country relating to a license, certificate, or other authorization to
practice as an appraiser. Board Rule 13.5 requires a licensee to notify the Board of any
such action within ten (10) days. Failure to make the required disclosure to the Board
may result in additional discipline being imposed against the license.
Appraisal Management Companies can have their licenses disciplined by the Board of
Real Estate Appraisers if they have been the subject of an adverse or disciplinary action
in another state, territory, or country relating to a license, registration, certification,
or other authorization to practice as an appraisal management company. Board rule
13.5 requires that an AMC, that has been subject to an adverse or disciplinary action,
report the action to the Board within ten (10) days. Failure to make the required
disclosure may result in additional discipline being imposed against the license. The
Board regularly sees these types of violations because most appraisal management
companies are credentialled in multiple jurisdictions. Depending on the circumstances
surrounding the adverse or disciplinary actions taken in other states, the Board has
resolved some of these cases with written reprimands that ultimately result in dismissal
of the complaint. The Board has done this to attempt to avoid the potential for
additional discipline in other jurisdictions. However, reporting to the Board is still
mandatory and the Board is under no obligation to treat similar violations in this
manner.
Mortgage Loan Originators can be disciplined by the Board of Mortgage Loan
Originators if one of the following occur:
1. Having had a mortgage loan originator’s license suspended or revoked in any
jurisdiction; or
2. Having had any disciplinary action taken against the mortgage loan originator in
any other jurisdiction.
The Board can deny a license, refuse to renew, or revoke a license if, within the last
five years, had a license, registration, or certification issued by Colorado or another
state revoked or suspended for fraud, deceit, material misrepresentation, theft, or the
breach of a fiduciary duty, and the discipline denied the person authorization to
practice as:
1. A mortgage broker or mortgage loan originator;
2. A real estate broker;
3. A real estate salesperson;
4. A real estate appraiser;
5. An insurance producer;
6. An attorney;
7. A securities broker-dealer;
8. A securities sales representative;
9. An investment advisor; or
10.An investment advisor representative.
The Board is required to deny a license, refuse to renew, or revoke a license if the
individual has had a mortgage loan originator’s license or similar license revoked in any
jurisdiction. Rule 5.23 requires that a mortgage loan originator notify the Board within
thirty (30) calendar days of any disciplinary action taken.
Mortgage Loan Originators need to pay close attention to any adverse or disciplinary
actions taken against a licensee by multiple jurisdictions as joint actions. Historically,
Colorado has been excluded from the joint settlement agreements that other
jurisdictions have taken. This has created significant confusion for the impacted
licensees because they were not aware that the Board could take action against their
licenses for the discipline imposed, and that their failure to report could result in
additional imposition of discipline.
If you have been convicted or pleaded to a crime or have been subject to a disciplinary
action in another jurisdiction, and are uncertain of your reporting obligations, please
contact the Division. If you need to self-report one of these violations, you may do so
by submitting a complaint against yourself in the eLicense system. Instructions on filing
a complaint can be found here.
