Director’s Corner: Standard forms – attorney drafted forms
As a result of the Real Estate Commission’s Sunset Review in 2016, there was legislation passed in 2017 that modified and expanded the statutory language regarding a broker’s use of standard forms. The law still requires a broker to use a Commission-approved form when such form exists and is appropriate for a transaction. However, there are various other forms that now fall within the definition of a standard form, including forms that are drafted by a licensed Colorado attorney. As Division staff reviews transaction files during brokerage audits, we are regularly seeing attorney drafted forms that were created by attorneys not licensed in Colorado and that are unfamiliar with the requirements set forth in §12-10-403(4)(b), C.R.S. and Commission Rule F-1. Attorney drafted forms that are created for use by a broker, employing broker, or brokerage firm, must contain the name of the attorney or law firm and the name of the broker, employing broker, or brokerage firm for whom the form was prepared. The form must also contain a statement that “This form has not been approved by the Colorado Real Estate Commission”. Failure to include this information may result in discipline of a broker’s license regardless of the legal advice provided by the attorney that created the form.
Marcia Waters has been with the Colorado Division of Real Estate since August 2005. Marcia started with the Division as a Criminal Investigator for the Real Estate Commission and was promoted to Chief Investigator in 2006. In 2007, she was promoted to the position of Investigations and Compliance Director. In that capacity, she managed the investigatory and settlement programs for the Division. On October 15, 2010, she was promoted to the position of Division Director. The Division of Real Estate licenses and regulates approximately 50,000 real estate professionals. Ms. Waters serves as the administrator for the Real Estate Commission, the Board of Real Estate Appraisers, the Board of Mortgage Loan Originators, the Community Association Manager Program and the HOA Information and Resource Center. Ms. Waters manages the Division’s $6.5 million budget, oversees a staff of approximately 57 full-time employees, and establishes the direction of Division programs based on market and industry trends.
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