Things to Know
1. CAR Secures Major Wins in Real Estate Sunset Bill. The Colorado Association of REALTORS® played a leading role in shaping this year’s sunset bill, “Sunset Division of Real Estate” (House Bill 1287), to continue the Colorado Real Estate Commission and Division of Real Estate, both set to expire in September 2026, for another 10 years. The policy changes within the bill carried significant implications for brokers and consumers, and CAR was actively engaged to ensure the regulatory framework remains fair, effective, and practical.
CAR successfully removed a harmful provision that would have authorized the Commission to impose restitution on brokers. This proposal would have fundamentally shifted the Commission into an adjudicatory role and required licensees to pay potentially tens of thousands of dollars before reinstating their license—costs not covered by errors and omissions insurance. This would have left brokers without a viable path to resolution and consumers without a reliable way to be made whole. By eliminating this language, CAR preserved due process protections and ensured these matters remain in civil court, where appropriate remedies and insurance coverage are available.
In addition, CAR secured several key amendments to modernize and clarify regulations. The bill now ensures that designated brokers can share their clients' confidential information with supervising and/or employing brokers, provided it is not to the detriment of their clients. We also reformed overly burdensome trust account requirements by clarifying that only funds that come into a licensee’s possession or control in connection with licensed activities must be held in a trust account, and by updating affiliated business arrangement disclosures so that only the client being represented must sign, while third-party consumers are informed via disclosure. With these changes in place, CAR fully supports HB 1287 and will fight to maintain these amendments as the bill continues through the legislative process.
2. RUBS Clarification Bill Sent to Governor. Last week, the legislature approved “Ratio Utility Billing Systems” (House Bill 1013), legislation addressing how utility costs may be allocated in residential rental properties. The bill clarifies that landlords may use a ratio utility billing system (RUBS) to distribute utility charges among tenants, provided certain consumer protections are met—such as prohibiting markups beyond the actual utility cost, excluding common area expenses, and requiring clear disclosure of how charges are calculated in the lease.
The measure serves as a needed clarification following the passage of House Bill 25-1090, where bill language and subsequent clarifications from the Attorney General’s office created uncertainty around the use of RUBS in practice. By clearly outlining that the practice is permitted, the bill provides greater consistency for housing providers and property managers navigating utility billing requirements. The bill has passed both chambers of the legislature and has been sent to the Governor for signature.
3. Expanding the Use of Documentary Fees for Housing. The legislature recently advanced “Strategy to Reduce & Prevent Homelessness” (House Bill 1202), a wide-ranging measure addressing homelessness that includes a provision related to real estate documentary fees. A similar effort failed last year but has been reintroduced this year with the same goal of allowing counties to designate a portion of documentary fees—collected during real estate transactions—to be transferred to a county government or local housing authority to support the development, preservation, or acquisition of affordable housing.
While the goal of increasing housing resources is broadly shared, this provision raises important questions for CAR—who has taken an Amend position on the bill. Documentary fees have traditionally covered the administrative costs of recording real estate transactions. Redirecting those funds toward broader housing initiatives begins to resemble a tax rather than a fee under TABOR principles, particularly if the revenue is used beyond the direct service being regulated. It also invites a longer-term concern: if these funds are repurposed, future pressure to increase the fee itself may follow.