DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
REAL ESTATE BROKERS
4CCR 725-1

EMERGENCY RULE

E-48 Prohibited Remedies for Compensation

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4. 	E-48 Prohibited Remedies for Compensation

Section 1.	Authority

The statutory basis for the adoption of this rule regarding real estate brokers is Parts 1, 2 and 8 of Title 12, Article 61 C.R.S.  The specific rulemaking provisions contained therein are sections 12-61-114(4) and 12-61-114.5, C.R.S.

Section 2.	Scope and Purpose

The Commission finds that immediate adoption of this rule is imperatively necessary for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of section 24-4-103, C.R.S., applicable to non-emergency rules, would be contrary to the public interest.  Without the immediate adoption of this emergency rule, the public’s interest is not served.  Wherefore, the Commission, pursuant to section 24-4-103(6), C.R.S. has an obvious and stated need to adopt this rule.

Pursuant to section 12-61-201, C.R.S., real estate brokers are entitled to a commission for finding a purchaser who is ready, willing and able to complete the purchase of real estate as proposed by the owner once the same is consummated or is defeated by the refusal or neglect of the owner to consummate the same as agreed upon.

The purpose of this rule is to ensure that real estate brokers involved in residential transactions, do not pursue payment of a perceived or validly earned commission, or other compensation for brokerage duties through remedies that may impact the merchantability of the client’s title to the property.  The rule would prohibit real estate brokers involved in residential transactions from filing liens, lis pendens or recording listing contracts in an attempt to secure the payment of a commission or earned fee.

Section 3.	Applicability

This rule applies to real estate brokers licensed by the Colorado Real Estate Commission.

Section 4.	E-48 Prohibited Remedies for Compensation

No licensee shall file a lien, a lis pendens or record a listing contract to secure the payment of a commission or other fee associated with real estate brokerage duties in a residential transaction.  A licensee involved in a residential transaction shall not cause the title to a property to become clouded or otherwise interfere with the transfer of title when the licensee is not a principal in the transaction.  A licensee involved in a commercial transaction, pursuant to §38-22.5-101, may file such a lien or lis pendens.