Archives for November 2010

‘Tis the season for real estate Brokers to take classes!  The past few months have been very busy for me as an instructor, and as usual, I find myself confronted with questions and concerns in the classroom.  A common inquiry has come from newer licensees, those licensed within the past year:  “Do I need to take a CREC Mandatory Update class in my first year of licensure?”  The answer is YES.

Years ago, before the Colorado Real Estate Commission transitioned from the calendar year expirations/renewals to our current system of anniversary date expirations/renewals, when an applicant achieved his or her Broker Associate license, he or she expired at the end of that first calendar year.  No education was required in that shortened period of time, including a CREC Update.  After that initial renewal on January 1st, the Broker’s three-year renewal cycle began, as did the requirement for 24 hours of CE credits.  It appears that some pre-licensing schools are still teaching under this old system and are telling students they do not need to take a CREC Mandatory Update in the first year of licensure, but this is not true.

In 2005, the Colorado Real Estate Commission began the transition to the expirations/renewals on our anniversary deadlines, and with that change came different requirements for new licensees.   Now, from the initial date of issue of a Broker’s license, the Broker has three years to complete 24 hours of continuing education credits, of which 12 must be the CREC Mandatory Updates.  The clock starts ticking from day one; there is no longer a “free grace period” as there was years ago. 

So the moral of this story: new licensees need to take three different CREC Mandatory Updates within three years from their license date.  More than likely, that will require attending a CREC Mandatory Update within that first year.

As we approach January 1st and the unveiling of the five new CREC Purchase Contracts, it’s a good time to quickly review some potential red flags in the soon-to-be Section 3: Dates and Deadlines.

Remember that by inserting “N/A” or “Deleted” into any blank in Section 3 not only negates the deadline, but also entire corresponding Section (see the Section number in the Reference column).  So make sure you really want to DELETE the whole paragraph.  For example, in Section 7.2 there is a box that may be checked to request Exceptions; if you’ve checked this box, you may naturally then assume that the appropriate Deadline in Section 3, Item 3, the Exceptions Request Deadline, does not apply – because it’s already completed, and therefore insert N/A.  However, “N/A” would then delete Section 7.2, which is not your intent.  A better alternative would be writing “Completed” or “See Section 7.2” on Item 3 under Dates and Deadlines, as it clearly communicates your intent. 

The opposite is also true – when a deadline is inserted on one of the blanks in Section 3, the corresponding paragraph does apply.  For example, when preparing an offer for a Buyer, you may presume that a Seller’s Property Disclosure will be provided (assuming you haven’t been able to acquire one in advance), so you put a deadline in Item 10 regarding Section 10.1.  The Seller accepts the Contract as written, but a few days later when you contact the Listing Broker to obtain the Seller’s Property Disclosure, you are informed that the Seller actually never completed one (for whatever reason).  At this point, many Brokers shrug off the situation and pass the message along to the Buyer, but in actuality, the Buyer could very well demand a Seller’s Property Disclosure form just as indicated in Section 10.1.  In such a case, the Listing Broker may want to advise the Seller to counter or amend the Contract to delete Item 10 under Section 3.

Moral of the story:  pay attention to Dates and Deadlines in Section 3. In today’s market, consumers are savvier and less tolerant of sloppy work and lack of attention to detail, so protect yourself by accurately reflecting the Buyers’ and/or Sellers’ intent under the Dates and Deadlines.