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January 2003
Index of all
messages from the Association President
Timely
topics for 2003.
by Don DiFiore
Happy New Year to one and all. Can you believe we are already writing 2003 on all of our documents? The years seem to pass so quickly and 2002 was no exception.
New year, new forms
2003 brings many new and revised forms due to the changes brought about by the 2002 Designated Agency legislation. If you
didn't attend one of the classes about the new forms and types of working relationships, be sure to stop by the Association office to view or purchase the new documents or check the Colorado Real Estate
Commission website at www.dora.state.co.us/real-estate.
The Colorado Real Estate Commission has targeted Jan. 1, 2003, as the transition date to the new forms and that date is mandatory for
anything affecting subagency or dual agency. For any contract creating single agency or transaction brokerage, those both remain legal
relationships into the New Year and should be converted to the new forms as the opportunity arises. If you have a carryover contract from
2002, and need to make any alterations in price or conditions, the changes should be written up on new listing forms.
As a managing broker, you must designate which broker associate is in charge of carryover contracts. You may do this through your office policy manual or by letter to the seller. The Colorado Association of REALTORS® created a model office policy manual that you may use for guidance. The manual is available at the CAR website at
www.colorealtor.org.
Code of Ethics updates
Several changes to the REALTOR® Code of Ethics became effective Jan. 1. The changes mandate detailed disclosure of cooperative compensation policies, require REALTORS® to ask prospects about the possible existence of an agency relationship with another REALTOR®, and mandate that REALTORS® must divulge the existence of other offers.
Standard of Practice 1-12 has been amended to require that REALTORS® entering into listing contracts must advise their sellers/landlords of their specific company policies regarding cooperation and the amounts of any compensation that will be offered to buyer/tenant agents and/or brokers acting in legally recognized non-agency capacities.
Standard of Practice 16-13 has been amended to require that "before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospective purchases, sellers, tenants or
landlords ("prospects"), REALTORS® shall ask prospects whether they are a party to any exclusive representation agreement. REALTORS® shall not knowingly provide substantive services concerning a prospective
transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects’ exclusive
representatives or at the direction of the prospects."
A new Standard of Practice relative to Article 1 requires that "REALTORS®, in response to inquiries from buyers or cooperating
brokers shall, with the seller’s approval, divulge the existence of offers on the property."
New down payment program
Finally, I have been working on a new program for all REALTORS® in Colorado. The "Colorado Cares Program" is an innovative new down payment assistance program that features lower fees to the seller.
The program complies with FHA guidelines and benefits the Colorado Association of REALTORS® Housing Opportunity Fund (CARHOF) to support local charities in Colorado. When all the
i's are dotted and the t's crossed, we will provide detailed information to you. For a preview, visit
www.coloradocaresprogram.com.
My best to you for a happy and prosperous New Year. Please feel free to contact me or the staff at the Association office with your
ideas, comments, needs or questions.
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