Download the 2017 DMAR Report on Colorado Real Estate Commission

DMAR engaged our firm to assist in analyzing the Colorado Real Estate Commission (CREC or the Commission) policy and regulatory issues, including an examination of investigations and discipline relating to the Colorado licensed real estate brokerage community.  In preparing this summary report, we’ve attended CREC meetings and reviewed disciplinary records from 2013 through 2016, including disciplinary stipulations, decisions by administrative law judges in broker cases and final agency orders issued by the Colorado Division of Real Estate. 

Download the report​

Executive Summary

Broker disciplinary cases resolved in 2016 totaled 248. This number represents a substantial decrease from the previous year which closed with 301 disciplinary resolved cases. This decline in disciplinary cases is likely caused, at least in part, by an increase in the number of complaints against brokers in 2016 (1551 complaints in 2016 compared to 1328 in 2015) and scarce resources at the Division of Real Estate to deal with this increase. 

In 2016, 174 licensees faced discipline for failure to meet continuing educational requirements. This violation was by far the most common violation of license law for 2016 and has been for several years. Continuing its trend, the Division of Real Estate randomly audited 1012 brokers in 2016 for continuing education compliance. Licensees should ensure compliance with continuing education requirements. Licensees should also be aware that the three year compliance period for continuing education will soon change by ending on a calendar year basis rather than on each licensee’s individual license anniversary date. 

Both 2016 and 2015 also saw a substantial rise in cases involving the failure to make appropriate brokerage disclosures in writing. Licensees should make certain to either provide the appropriate brokerage disclosure form or secure an executed listing/exclusive right to buy contract and ensure that a copy of such form or contract is retained in the broker’s file.   

2016 also saw an increase in brokers disciplined for record retention issues. Brokers are advised to ensure they are retaining required records (discussed further below) for not less than the statutory four year period. 

Table of contents

• Executive Summary 
• Analysis of 2016 License Law Violations
  • Education Violations
  • Brokerage Disclosures
  • Accounting Violations
  • New Trend: Recordkeeping Problems 
  • Criminal Issues
• Commission Investigations
• Commission Discipline
• Commission Regulatory and Policy Issues
  • Minimum Service Listings and “MLS Entry Only” Listings
  • Anticompetitive Behavior
  • Record Retention
• Conclusion