Colorado

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Colorado

CREC CONSIDERS FORMS CHANGES

The Colorado Real Estate Commission's forms committee is preparing revisions to a variety of documents. According to CAR's Vice President for Public Policy, Rachel Nance, the forms could be adopted as early as August 7. One form of particular interest was drafted as a result of the passage of HB-1156 sponsored by REALTOR/Representative Marcia Looper and Senator Ken Gordon. It is titled “Source of Water Addendum to Contact to Buy and Sell Real Estate." The form requires the seller to disclose the source of the property’s water and contains three possibilities: 1) well - the seller must indicate whether the well permit is attached although it is not required); 2) water provider - the seller must include the contact information for the provider; or 3) the water source is neither a well nor a water provider. Number 3 is worrisome because it offers ample opportunities for vague, inaccurate or misleading language since it is up to the discretion of the seller to write the description. The water disclosure is a separate document because unlike the seller's property disclosure form, it is mandatory. And speaking of the seller's disclosure form, an important revision on this form is a check off item related to methamphetamine. Currently the language reads: "Property previously used as a methamphetamine laboratory." This was incomplete and inaccurate since by state statute sellers are not obligated to disclose properties used as meth labs provided that the properties have been cleaned up according to state standards. So, the proposed language addresses that issue by inserting additional language: "Property was previously used as a methamphetamine laboratory but not remediated to state standards." (emphasis added). To see more proposed changes visit www.dora.state.co.us/real-estate/rulemaking/index.htm under 2007 Forms, below the Rulemaking Notice.

PUBLIC TRUSTEES' GRANTED DELAY IN FORECLOSURE RELIEF RULES

Currently, a Colorado home owner in foreclosure has between 45 and 60 days to get current on their mortgage, or 'cure' the delinquent payments. If they fail to act the home is sold to the highest bidder in a public trustee auction. After the sale, a home owner usually has up to 75 day to redeem the original mortgage. The Colorado legislature enacted reforms last year that would provide for a 60 day cure period and up to 125 days following a public trustee sale to redeem the mortgage but the implementation of the new rules have been delayed to January 2008 due to problems with software and the large turnover in the public trustees’ offices since Bill Ritter was elected Governor this past November. The Colorado Public Trustees' Association requested the delay.