Colorado Association of REALTORS® Government Affairs

Colorado Association of REALTORS®
2010 Legislative Update

As of May 4, 2010

Political Survival Fund (PSF)

PSF consists of invested funds from REALTOR® members who are interested in protecting real estate interests and property rights. These contributions help support candidates on all levels of government and enable REALTORS® to build relationships with legislators and educate them on important issues. PSF is nonpartisan, supporting above all else REALTOR® interests.
These accomplishments are only achievable by contributing your fair share. Join your colleagues and invest $25 today! Contribute directly online at www.ColoradoPSF.org.

CAR is running two pieces of legislation in 2010:

Commercial Real Estate Broker’s Commission Security Act

HB 1288 would permit a broker involved in a lease transaction to place a lien on commercial property where there is a written agreement between the broker and property owner or owner’s agent. Brokers, who often work for months and even years on a deal to earn a commission, deserve a mechanism in place that protects them. HB 1288 was signed into law on April 29th and is anticipated to go into effect August 11, 2010.

Amendments to the Colorado Foreclosure Protection Act

HB 1133 seeks to make several positive changes to the Colorado Foreclosure Protection Act. Among them:
o clarifying the ambiguous definition of “equity purchaser”
o exempting transactions that use the Short Sale Addendum;
o modifying the definition of a “Residence in Foreclosure; and
o modifying the requirement to use the native language of a non-English speaking homeowner in the Foreclosure Contract to Buy and Sell
HB 1133 is a result of collaboration between CAR, the Attorney General’s office, Division of Real Estate, Public Trustees, and various real estate attorneys. It has received approval from the Legislature is awaiting the Governor’s signature as of today’s date.

Danger to Real Estate:

Warranty of Habitability

SB 185 will overturn a statutory requirement that a tenant must provide written notice to a landlord in the case of a breach, expand the definition of a violation of the Warranty of Habitability, and add new treble damages language. When the Warranty of Habitability was created in 2008, stakeholder groups representing landlords, property owners and tenants met for months to agree on palatable language specific to these issues; many of these discussions were mediated using taxpayer dollars. It is not in the legislature's best interest to back out on the agreement reached just a short time ago.
Are you receiving the CAR Capitol Connection to receive weekly legislative updates on issues important to REALTORS®?
Please contact the CAR Government Affairs team at 303.790.7099 or ga@ColoradoREALTORS.com

Other Legislation of Interest:

Rent Control Amended

As introduced, HB 1017 sought to expand the scope of voluntary agreements between municipalities and private developers for affordable housing units beyond what is afforded under current law. The bill was amended to clarify that the legislation involves only voluntary agreements between a property owner and a local government and that an application for a development permit may not be denied if the applicant declines to enter into an agreement to limit rent on their property.
Although CAR still believes legislation to permit voluntary agreements is unnecessary, we are pleased with the amendments. CAR will continue to monitor any efforts to impose involuntary forms of rent control and will protect the property owner's right to freely own, preserve and convey their property.

Right to Float Bill Amended into a Study

As introduced, HB 1188 would have expanded the rights of commercial rafting companies when traversing Colorado’s waterways to impede upon private property. The peaceful use and enjoyment of one's own property, and control of access, are fundamental to private property rights. CAR expressed heavy concerns to lawmakers that the bill would infringe upon such rights without just compensation. We were pleased that the bill was amended into just a study, which should be considered a major victory for private property rights. It has yet to be signed by the Governor.

Landowner Liability for "Good-Samaritan" Injuries Defeated

HB 1084 sought to authorize “good Samaritans” to enter a landowner's abandoned property for purposes of general upkeep; however, it did not alleviate the liability of the landowner for injuries sustained by the individual while on the property. Further, REALTORS® would have been included in the definition of “landowner,” worsening issues of liability. CAR was opposed to the legislation.

ID Theft Disposal of Records Defeated

HB 1056 sought to require every public and private entity in the state that uses paper or electronic documents or records during the course of business that contain personal identifying information to destroy those documents or records prior to disposing of them. They would have been subject up to a $500 fine per document. CAR expressed concern over a lack of clarity in the bill, especially given the severity of the proposed penalties. The bill died while it was in House Judiciary Committee.

Regulation of Appraisal Management Companies Died in Committee

CAR supported the regulation of appraisal management companies (AMCs). SB 077 was a prudent and much-needed step to ensure increased certainty in the home-buying process. Absent Federal intervention regarding the HVCC, our state needs to continue working toward addressing this issue. We applaud the Division of Real Estate in its attempt to tackle this very important concern for Colorado real estate and look forward to working with them on the issue moving forward.

Are you receiving the CAR Capitol Connection to receive weekly legislative updates on issues important to REALTORS®? Please contact the CAR Government Affairs team at 303.790.7099 or ga@ColoradoREALTORS.com