§ 12-10-724 — Dual status as real estate broker - requirements

Colorado § 12-10-724

• Jurisdiction: Colorado
• Title 12: Professions
• Art.: Real Estate

Text

(1) Unless a
mortgage loan originator complies with both subsections (2) and (3) of this section,
he or she shall not act as a mortgage loan originator in any transaction in which:

(a) The mortgage loan originator acts or has acted as a real estate broker or
salesperson; or

(b) Another person doing business under the same licensed real estate
broker acts or has acted as a real estate broker or salesperson.

(2) Before providing mortgage-related services to the borrower, a mortgage
loan originator shall make a full and fair disclosure to the borrower, in addition to
any other disclosures required by this part 7 or other laws, of all material features
of the loan product and all facts material to the transaction.

(3) (a) A real estate broker or salesperson licensed under part 2 of this
article 10 who also acts as a mortgage loan originator shall carry on the mortgage
loan originator business activities and shall maintain the person's mortgage loan
originator business records separate and apart from the real estate broker or sales
activities conducted pursuant to part 2 of this article 10. The activities shall be
deemed separate and apart even if they are conducted at an office location with a
common entrance and mailing address if:

(I) Each business is clearly identified by a sign visible to the public;

(II) Each business is physically separated within the office facility; and

(III) No deception of the public as to the separate identities of the broker
business firms results.

(b) This subsection (3) shall not require a real estate broker or salesperson
licensed under part 2 of this article 10 who also acts as a mortgage loan originator
to maintain a physical separation within the office facility for the conduct of its real
estate broker or sales and mortgage loan originator activities if the board
determines that maintaining the physical separation would constitute an undue
financial hardship upon the mortgage loan originator and is unnecessary for the
protection of the public.

Legislative History

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 710, � 1, effective October 1.