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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0360.01 Richard Sweetman x4333 HOUSE BILL 26-1287
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING THE CONTINUATION OF CERTAIN REGULATORY101
FUNCTIONS OF THE DIVISION OF REAL ESTATE , AND , IN102
CONNECTION THEREWITH , IMPLEMENTING THE103
RECOMMENDATIONS CONTAINED IN THE 2025 SUNSET REPORT104
BY THE DEPARTMENT OF REGULATORY AGENCIES.105
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/.)
Sunset Process - House Transportation, Housing, and Local
Government Committee. The bill implements the recommendations of
HOUSE SPONSORSHIP
Boesenecker and Brooks,
SENATE SPONSORSHIP
Kolker and Jodeh,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
the department of regulatory agencies in its sunset review and report
concerning certain regulatory functions of the division of real estate
(division), including the real estate commission (commission), the
registration of subdivision developers, and requirements for home
warranty service contracts. Specifically:
! Sections 1 through 5 of the bill continue the division,
including the commission and subdivision developers, for
11 years, until 2037, and remove home warranty service
contracts from the sunset schedule;
! Section 6 authorizes the commission to deny a license to an
applicant who has committed any of certain offenses;
! Section 7 authorizes the commission to order a licensee
who commits any of certain offenses to pay restitution.
Section 7 also extends the time that must elapse before the
commission may consider an application for licensure from
a person whose license was revoked from one year to 2
years. Section 7 also updates gendered language to
gender-neutral language.
! Sections 7, 13, 14, and 21 allow the commission to
communicate with licensees via electronic mail for certain
purposes;
! Section 8 authorizes the commission to inactivate the
license of a licensee who fails to comply with continuing
education requirements. Section 8 also allows the division
to charge a fee to each provider that submits a continuing
education course.
! Section 9 clarifies that any licensed broker may elect to
have a license issued in a previously used legal name.
Section 9 also updates gendered language to gender-neutral
language.
! Sections 10 and 11 remove language requiring the
commission to serve subpoenas in the same manner as
subpoenas issued by a district court and substitute language
stating that subpoenas may be enforced by a court with
jurisdiction;
! Section 12 requires the division to establish protocols
addressing the security of electronic correspondence; and
! Sections 15 through 21 update gendered language to
gender-neutral language.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, amend 12-10-227 as2
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follows:1
12-10-227. Repeal of part - subject to review.2
This part 2 is repealed, effective September 1, 2026 SEPTEMBER3
1, 2037. Before the repeal, the division, including the commission, is4
scheduled for review in accordance with section 24-34-104.5
SECTION 2. In Colorado Revised Statutes, amend 12-10-305 as6
follows:7
12-10-305. Repeal of part - subject to review.8
This part 3 is repealed, effective September 1, 2026 SEPTEMBER9
1, 2037. Before the repeal, this part 3 is scheduled for review in10
accordance with section 24-34-104.11
SECTION 3. In Colorado Revised Statutes, amend 12-10-508 as12
follows:13
12-10-508. Repeal of part - subject to review.14
This part 5 is repealed, effective September 1, 2026 SEPTEMBER15
1, 2037. Before the repeal, this part 5 is scheduled for review in16
accordance with section 24-34-104.17
SECTION 4. In Colorado Revised Statutes, repeal 12-10-906 as18
follows:19
12-10-906. Repeal of part - subject to review.20
This part 9 is repealed, effective September 1, 2026. Before the21
repeal, this part 9 is scheduled for review in accordance with section22
24-34-104.23
SECTION 5. In Colorado Revised Statutes, 24-34-104, repeal24
(27)(a)(VI) and (27)(a)(XVII); and add (38)(a)(II) as follows:25
24-34-104. General assembly review of regulatory agencies26
and functions for repeal, continuation, or reestablishment - legislative27
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declaration - repeal.1
(27) (a) The following agencies, functions, or both, are scheduled2
for repeal on September 1, 2026:3
(VI) The division of real estate, including the real estate4
commission, created in part 2 of article 10 of title 12, and its functions5
under parts 2, 3, and 5 of article 10 of title 12;6
(XVII) The legal requirements pertaining to home warranty7
service contracts under part 9 of article 10 of title 12.8
(38) (a) The following agencies, functions, or both, are scheduled9
for repeal on September 1, 2037:10
(II) THE DIVISION OF REAL ESTATE, INCLUDING THE REAL ESTATE11
COMMISSION, CREATED IN PART 2 OF ARTICLE 10 OF TITLE 12, AND ITS12
FUNCTIONS UNDER PARTS 2, 3, AND 5 OF ARTICLE 10 OF TITLE 12.13
SECTION 6. In Colorado Revised Statutes, amend 12-10-202 as14
follows:15
12-10-202. License required.16
(1) It is unlawful for any A person, A firm, A partnership, A limited17
liability company, AN association, or A corporation to engage in the18
business or capacity of real estate broker in this state without first having19
obtained a license from the commission. No THE COMMISSION SHALL NOT20
GRANT A person shall be granted a license until the person establishes21
compliance with the provisions of this part 2 concerning education,22
experience, and testing; truthfulness and honesty and otherwise good23
moral character; and, in addition to any other requirements of this section,24
competency to transact the business of a real estate broker in such A25
manner as to safeguard the interest of the public and only after26
satisfactory proof of the qualifications, together with the application for27
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the license, is filed in the office of the commission. In determining the1
person's character, the commission shall be governed by section 24-5-101.2
(2) THE COMMISSION MAY DENY A LICENSE TO AN APPLICANT FOR3
LICENSURE IF THE APPLICANT IS GUILTY OF ANY OF THE OFFENSES LISTED4
IN SECTION 12-10-217 (1)(n)(I).5
SECTION 7. In Colorado Revised Statutes, 12-10-217, amend6
(1) introductory portion, (1)(b), (7), and (9); and add (11) as follows:7
12-10-217. Investigation - revocation - actions against licensee8
or applicant - definition.9
(1) The commission, upon its ow n motion, may, and, upon the10
complaint in writing of any person, shall, investigate the activities of any11
licensee or any person who THAT assumes to act in the capacity of a12
licensee within the state, and the commission, after holding a hearing13
pursuant to section 12-10-219, has the power to MAY impose an14
administrative fine not to exceed two thousand five hundred dollars for15
each separate offense, and to ORDER A LICENSEE TO PAY RESTITUTION ,16
censure a licensee, to place the A licensee on probation and to set the17
terms of probation, or to temporarily suspend a license or permanently18
revoke a license when IF the licensee has performed, is performing, or is19
attempting to perform any of the following acts and is guilty of:20
(b) Making any promise of a character that influences, persuades,21
or induces another person when he or she THE LICENSEE could not or did22
not intend to keep the promise;23
(7) When a complaint or an investigation discloses an instance of24
misconduct that, in the opinion of the commission, does not warrant25
formal action by the commission but that should not be dismissed as26
being without merit, the commission may send a letter of admonition by27
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ELECTRONIC MAIL OR BY certified mail, return receipt requested, to the1
licensee against whom a complaint was made and a copy thereof to the2
person making the complaint. but The letter shall MUST advise the3
licensee that the licensee has the right to request, in writing, within twenty4
days after proven receipt, that formal disciplinary proceedings be initiated5
to adjudicate the propriety of the conduct upon which the letter of6
admonition is based. If the request is timely made, the letter of7
admonition shall be deemed vacated, and the matter shall be processed by8
means of formal disciplinary proceedings.9
(9) Any application for licensure from a person whose license has10
been revoked shall not be considered until the passage of one year TWO11
YEARS from the date of revocation.12
(11) IF AN INDIVIDUAL'S LICENSE WAS SUSPENDED OR REVOKED13
DUE TO CONDUCT THAT RESULTED IN FINANCIAL LOSS TO ANOTHER14
PERSON, AND THE COMMISSION ORDERS THE INDIVIDUAL TO PAY15
RESTITUTION PURSUANT TO SUBSECTION (1) OF THIS SECTION , A NEW16
LICENSE SHALL NOT BE GRANTED , NOR SHALL A SUSPENDED LICENSE BE17
REINSTATED, UNTIL FULL RESTITUTION HAS BEEN MADE TO THE PERSON18
SUFFERING THE FINANCIAL LOSS . THE AMOUNT OF RESTITUTION SHALL19
INCLUDE INTEREST, REASONABLE ATTORNEY FEES, AND COSTS OF ANY SUIT20
OR OTHER PROCEEDING UNDERTAKEN IN AN EFFORT TO RECOVER THE21
LOSS.22
SECTION 8. In Colorado Revised Statutes, 12-10-213, amend23
(5); and add (6) and (7) as follows:24
12-10-213. Renewal of license - continuing education25
requirement - rules.26
(5) The commission shall promulgate rules to implement this27
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section MAY INACTIVATE THE LICENSE OF A LICENSEE WHO FAILS TO1
COMPLY WITH THE REQUIREMENTS OF THIS SECTION.2
(6) T HE DIVISION MAY CHARGE A FEE TO EACH PROVIDER THAT3
SUBMITS A CONTINUING EDUCATION COURSE.4
(7) T HE COMMISSION SHALL ADOPT RULES TO IMPLEMENT THIS5
SECTION.6
SECTION 9. In Colorado Revised Statutes, 12-10-203, amend7
(5)(b) and (8) as follows:8
12-10-203. Application for license - rules - definition.9
(5) (b) An applicant for a broker's license who has held a real10
estate license in another jurisdiction that administers a real estate broker's11
examination and who has been licensed for two or more years prior to12
applying for a Colorado license may be issued a broker's license if the13
applicant establishes that he or she possesses THEY POSSESS credentials14
and qualifications that are substantively equivalent to the requirements in15
Colorado for licensure by examination.16
(8) No A license for a broker registered as being in the employ of17
another broker shall NOT be issued to a partnership, a limited liability18
company, or a corporation or under a fictitious name or trade name;19
except that a married woman AN INDIVIDUAL may elect to use her birth A20
PREVIOUSLY USED LEGAL name.21
SECTION 10. In Colorado Revised Statutes, amend 12-10-22422
as follows:23
12-10-224. Subpoena compelling attendance of witnesses and24
production of records and documents.25
The commission, the director, or the administrative law judge26
appointed for hearings may issue a subpoena compelling the attendance27
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and testimony of witnesses and the production of books, papers, or1
records pursuant to an investigation or hearing of the commission. The2
subpoenas shall be served in the same manner as subpoenas issued by3
district courts MAY BE ENFORCED BY A COURT OF COMPETENT4
JURISDICTION IF NOT OBEYED and shall be issued without discrimination5
between public or private parties requiring the attendance of witnesses6
and the production of documents at hearings. If a person fails or refuses7
to obey a subpoena issued by the commission, the director, or the8
appointed administrative law judge, the commission may petition the9
district court having jurisdiction for issuance of a subpoena in the10
premises, and the court shall, in a proper case, issue its subpoena. Any A11
person who THAT refuses to obey a subpoena shall be punished as12
provided in section 12-10-225.13
SECTION 11. In Colorado Revised Statutes, 12-10-506, amend14
(4) as follows:15
12-10-506. Powers of commission - injunction - rules.16
(4) The commission, the director, or the administrative law judge17
appointed for a hearing may issue a subpoena compelling the attendance18
and testimony of witnesses and the production of books, papers, or19
records pursuant to an investigation or hearing of the commission. Any20
such subpoena shall be served in the same manner as for subpoenas21
issued by district courts MAY BE ENFORCED BY A COURT OF COMPETENT22
JURISDICTION IF NOT OBEYED.23
SECTION 12. In Colorado Revised Statutes, 12-10-207, amend24
(2) as follows:25
12-10-207. Division of real estate - creation - director, clerks,26
and assistants.27
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(2) It is the duty of the director, personally, or the director's1
designee to:2
(a) Aid in the administration and enforcement of parts 2 THIS PART3
2 and PART 5 of this article 10 and in the prosecution of all persons4
charged with violating any of their provisions; to5
(b) Conduct audits of business accounts of licensees; to6
(c) E STABLISH PROTOCOLS TO ADDRESS THE SECURITY OF7
ELECTRONIC CORRESPONDENCE , INCLUDING WHEN ELECTRONIC8
CORRESPONDENCE MAY BE USED FOR THE PURPOSES OF THIS ARTICLE 10;9
(d) Perform such duties of the commission as the commission10
prescribes; and to11
(e) Act in ON behalf of the commission on such occasions and in12
such circumstances as the commission directs.13
SECTION 13. In Colorado Revised Statutes, 12-10-208, amend14
(2) as follows:15
12-10-208. Resident licensee - nonresident licensee - consent16
to service.17
(2) If a broker has no registered agent registered in this state, the18
registered agent is not located under its registered agent name at its19
registered agent address, or the registered agent cannot with reasonable20
diligence be served, the broker may be served by ELECTRONIC MAIL,21
registered mail, or by certified mail, return receipt requested, addressed22
to the entity at its principal address. Service is perfected under this23
subsection (2) at the earliest of:24
(a) The date the broker receives the process, notice, or demand;25
(b) The date shown on the return receipt, IF ANY, IF THE RETURN26
RECEIPT IS signed by or on behalf of the broker; or27
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(c) Five days after mailing THE SERVICE IS SENT.1
SECTION 14. In Colorado Revised Statutes, 12-10-219, amend2
(2) as follows:3
12-10-219. Hearing - administrative law judge - review - rules.4
(2) The proceedings shall be held in the county where the5
commission has its office or in such other place as the commission may6
designate. If the licensee is an employed broker, the commission shall7
also notify the broker employing the licensee by mailing, by ELECTRONIC8
MAIL OR first-class mail, a copy of the written notice required under9
section 24-4-104 (3) to the employing broker's last-known business10
address.11
SECTION 15. In Colorado Revised Statutes, 12-10-201, amend12
(6)(b)(II), (6)(b)(V), (6)(b)(XII), and (6)(b)(XIII) as follows:13
12-10-201. Definitions.14
As used in this part 2, unless the context otherwise requires:15
(6) (b) "Real estate broker" or "broker" does not apply to any of16
the following:17
(II) Any public official in the conduct of his or her THE PUBLIC18
OFFICIAL'S official duties;19
(V) An attorney-at-law in connection with his or her THE20
ATTORNEY'S representation of clients in the practice of law;21
(XII) A regularly salaried employee of an owner of an apartment22
building or complex who acts as an on-site manager of such an apartment23
building or complex. This exemption applies only in WITH respect to the24
customary duties of an on-site manager performed for his or her THE25
ON-SITE MANAGER'S employer.26
(XIII) A regularly salaried employee of an owner of condominium27
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units who acts as an on-site manager of such THE units. For purposes of1
AS USED IN this subsection (6)(b)(XIII) only, the term "owner" includes2
a homeowners' association AN HOA formed and acting pursuant to its3
recorded condominium declaration and bylaws. This exemption applies4
only in WITH respect to the customary duties of an on-site manager5
performed for his or her THE ON-SITE MANAGER'S employer.6
SECTION 16. In Colorado Revised Statutes, 12-10-212, amend7
(3) as follows:8
12-10-212. License fees - partnership, limited liability9
company, and corporation licenses - rules.10
(3) Each real estate broker's license granted to an individual shall11
entitle ENTITLES the individual to perform all the acts contemplated by12
this part 2 without any further application on his or her THE INDIVIDUAL'S13
part and without the payment of any fee other than the fees specified in14
this section.15
SECTION 17. In Colorado Revised Statutes, 12-10-218, amend16
(2)(g) introductory portion and (2)(g)(II) as follows:17
12-10-218. Affiliated business arrangements - definitions -18
disclosures - enforcement and penalties - reporting - rules -19
investigation information shared with the division of insurance.20
(2) (g) It shall IS not be a violation of this section for an affiliated21
business arrangement:22
(II) If an attorney or law firm represents a client in a real estate23
transaction and issues or arranges for the issuance of a policy of title24
insurance in the transaction directly as agent or through a separate25
corporate title insurance agency that may be established by that attorney26
or law firm and operated as an adjunct to his or her THE ATTORNEY'S OR27
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LAW FIRM'S law practice.1
SECTION 18. In Colorado Revised Statutes, amend 12-10-2252
as follows:3
12-10-225. Failure to obey subpoena - penalty.4
Any A person who THAT willfully fails or neglects to appear and5
testify or to produce books, papers, or records required by subpoena, duly6
served upon him or her THE PERSON in any matter conducted under parts7
2 and THIS PART 2 AND PART 5 of this article 10, commits a petty offense.8
Each day a person so refuses or neglects constitutes a separate offense.9
SECTION 19. In Colorado Revised Statutes, amend 12-10-30210
as follows:11
12-10-302. Objections on account of title.12
No A real estate agent or broker is NOT entitled to a commission13
when a proposed purchaser fails or refuses to complete his or her THE14
PROPOSED PURCHASER'S contract of purchase because of defects in the15
title of the owner, unless the owner, within a reasonable time, has the16
defects corrected by legal proceedings or otherwise.17
SECTION 20. In Colorado Revised Statutes, amend 12-10-30318
as follows:19
12-10-303. When owner must perfect title.20
The AN owner shall IS not be required to begin legal or other21
proceedings for the correction of a title until the agent or broker secures22
from the proposed purchaser an enforceable contract in writing, binding23
him or her THE PROPOSED PURCHASER to complete the purchase whenever24
the defects in the title are corrected.25
SECTION 21. In Colorado Revised Statutes, 12-10-505, amend26
(1) introductory portion, (1)(a), and (4) as follows:27
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12-10-505. Refusal, revocation, or suspension of registration1
- letter of admonition - probation.2
(1) The commission may impose an administrative fine not to3
exceed two thousand five hundred dollars for each separate offense; may4
issue a letter of admonition; may place a registrant on probation under its5
close supervision on such terms and for such time as it THE COMMISSION6
deems appropriate; and may refuse, revoke, or suspend the registration of7
any developer or registrant if, after an investigation and after notice and8
a hearing pursuant to the provisions of section 24-4-104, the commission9
determines that the developer or any director, officer, or stockholder with10
controlling interest in the corporation:11
(a) Has used false or misleading advertising or has made a false12
or misleading statement or a concealment in his or her THE DEVELOPER'S13
OR OTHER PERSON'S application for registration;14
(4) When a complaint or investigation discloses an instance of15
misconduct that, in the opinion of the commission, does not initially16
warrant formal action by the commission but that should not be dismissed17
as being without merit, the commission may send a letter of admonition18
by ELECTRONIC MAIL OR BY certified mail, return receipt requested, to the19
registrant who is the subject of the complaint or investigation and a copy20
thereof to any person making the complaint. The letter shall MUST advise21
the registrant that he or she THE REGISTRANT has the right to request in22
writing, within twenty days after proven receipt, that formal disciplinary23
proceedings be initiated against him or her THE REGISTRANT to adjudicate24
the propriety of the conduct upon which the letter of admonition is based.25
If the request is timely made, the letter of admonition shall be deemed26
vacated, and the matter shall be processed by means of formal27
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disciplinary proceedings.1
SECTION 22. Act subject to petition - effective date. This act2
takes effect at 12:01 a.m. on the day following the expiration of the3
ninety-day period after final adjournment of the general assembly (August4
12, 2026, if adjour nment sine die is on May 13, 2026); except that, if a5
referendum petition is filed pursuant to section 1 (3) of article V of the6
state constitution against this act or an item, section, or part of this act7
within such period, then the act, item, section, or part will not take effect8
unless approved by the people at the general election to be held in9
November 2026 and, in such case, will take effect on the date of the10
official declaration of the vote thereon by the governor.11
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