|
 
November 2007
Index of all
messages
from the Association President
Agents’ opinions needed as CREC undergoes review
By David DeElena
The Colorado Real Estate Commission (CREC) is currently being reviewed to determine whether its purpose still meets the objectives that required its creation.
This review falls under Colorado law, which requires a periodic review of all commissions that serve the public interest. Such a review works to determine whether the regulatory agencies need the assistance of the various commissions to ensure proper oversight and protection of the consumer.
The CREC review includes focus on a number of items that may represent significant changes for the real estate community, including the need for the Commission itself, the makeup of Commission appointments, state-negotiated errors and omissions insurance and educational requirements for licensees. The decisions reached by our state legislature may affect the cost of doing business.
Recommendations released Oct. 15 now go to the legislative committee for review. The Colorado Association of REALTORS® (CAR), the Aurora Association of REALTORS® (AAR), and leadership have lobbied, testified and participated in numerous hearings to protect the consumer and the real estate professional alike. The outcome of these efforts has yet to be determined; however a decision is expected in the next several months.
Feeling the effects
CAR’s lobbying efforts appear to be having an impact on the current recommendations. Most importantly, the need for the CREC itself was a crucial win. CAR worked with the Department of Regulatory Agencies (DORA) to look at CREC commissioners and help determine how the public would be represented. The concern of some government directors surrounded the appointed real estate professionals and their supervision of their own industry.
The educational requirements for licensees will most likely go back to a mandatory annual CREC Update Class. Based on the changes we are all seeing in the real estate contracts, this is a valid recommendation. The current requirements for attending the Update Class have led to some confusion on proper completion of the various contracts used in the industry. Reverting to requiring attendance yearly at the class could ensure that real estate professionals have the training necessary to protect the public and themselves.
A large concern for all is the proposed loss of state-negotiated errors and omissions insurance. Currently, the state is required to provide this type of coverage at reasonable rates to all licensees. The changes being discussed would eliminate this requirement and would create a situation in which each company would be required to negotiate this coverage on their own.
Smaller brokerages might find this difficult, costly or impossible to obtain. In states where this type of initiative has passed, insurance rates climbed dramatically while the quality of the coverage dropped. CAR has begun investigating a policy for its members in the event that the change goes through.
Express your opinions
What can you do? As we move into the legislative session, you will receive the chance to express your concerns. CAR will be sending out several “calls to action,” allowing the REALTOR® community the avenue to let their Colorado representatives know how they view the impending changes. Colorado ranks low in the response to these e-mailed action calls; this time, why not take the chance to make your voice heard when it really matters?
|
