Colorado

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Colorado - February 16, 2007

JUNKMAIL BILL INTRODUCED

Two Colorado Representatives introduced a bill on February 15 that calls for creation of a junk mail opt-out list in the state. The bill, if enacted in its present form could make many Realtor marketing/farming business activities illegal (like mailing a neighborhood seeking a property for a prospective buyer, for example. The bill has not been assigned to a committee for consideration as yet. This one will be watched closely. We’ll keep you informed. The following is the title of the bill as introduced. “ A Bill For An Act. Concerning the ability of a person to refuse unwanted commercial mail, and in conjunction therewith, enacting the ‘Colorado Junk Mail Opt-Out List Act’ containing exemptions for charitable nonprofit organizations, political organizations, and businesses with which the person has an established business relationship.”

WATER SOURCE DISCLOSURE ISSUE GOES TO CREC

HB 1156 – water disclosure – is the first bill of the year CAR actively opposed. Bill sponsors Rep. Looper and Sen. Gordon, were very willing to listen and work with us. CAR was the only organization opposing the bill – none of our partners took a position on the bill, they were simply monitoring the bill. The result is a bill that supports our position on full disclosure, no liability for any licensee involved in the transaction. And instead of being in statute, the statute now directs the RE Commission to promulgate rules on water disclosure. It will not go into effect until next January along with all of the form changes. The bill passed out of committee 13-0. The bill has been amended. HB 1156 now directs the Real Estate Commission to promulgate rules on water disclosure. It is intended that a declaration will appear in the contract to buy directing the buyer to review the appropriate section of the Seller’s Property Disclosure for the water source and contact information for the source. This is information is required to be provided by the seller and no real estate licensee involved in the transaction is responsible for providing the information nor are they liable if an “alleged inadequacy” is claimed by the buyer.

APPRAISAL FRAUD BILL MOVING THROUGH GENERAL ASSEMBLY

Senate Bill 85, targeting anyone that pressures an appraiser to inflate property valuations with criminal prosecution moved out of the Senate Business, Labor and Technology committee in mid February and was assigned to the Senate Appropriations committee for consideration. The bill was recommended by the state’s Foreclosure Prevention Task Force. If enacted, the bill will provide fines of $1000 for a first offense and up to $2000 for a subsequent violation. Another bill is being drafted that will target mortgage and may also cover real estate licensees. That bill is likely to provide standard licensing for mortgage brokers and loan originators; increase the attorney general’s authority to prosecute loan fraud; provide restitution to victims of predatory loans; provide equity protection for foreclosed homeowners who have paid their mortgage for years; and potentially provide a ‘cooling off’ period for borrowers to review mortgage documents.