The DORA Division of Real Estate has proposed a new rule to regulate and enforce real estate broker competency. Real estate brokers are required to perform the terms of their real estate transaction agreements with clients, but they also must exercise reasonable skill and care and have a duty to promote the interests of their clients “with the utmost good faith, loyalty, and fidelity.” It is a violation of the real estate license law if a licensee demonstrates unworthiness or incompetency to act as a real estate broker by conducting business in such a manner as to endanger the interest of the public.
The purpose of this rule is to ensure that licensed real estate brokers do not agree to perform brokerage activities in a transaction where they lack the necessary training, experience, or education to fulfill the terms of the brokerage practice agreement, unless the licensed broker is assisted by another licensed real estate broker possessing the necessary competency.
The new rule, E-47 Competency, is also accompanied by an enforcement provision.
A hearing on the new rule will be held on Tuesday, October 4, 2011 at 1560 Broadway, Suite 1250-C, Denver, Colorado 80202, beginning at 9:00 am.