March/April 2009

Colorado®
REALTOR www.ColoradoREALTORS.com

INSIDE: Economic Indicators 8 | Legal Digest 11 | Fair Housing: Pg 16-17

Why Come to
Crested Butte?
pages 12-13 U.S. POSTAGEPAID
PERMIT#751
DENVER, CO
PRSRT STD

309 Inverness Way South

Englewood, CO 80112

A publication of the
Colorado Association of REALTORS®
[page 2]
Table of Contents
Fly High with Our Black Swan...............................................................................4
Learnin’ is Earnin’ Power.........................................................................................5
2009 Calendar of Events.........................................................................................5
It’s Time To Rally........................................................................................................6
Classified Advertising For Renting......................................................................7
Housing & Economic Indicators...........................................................................8
News Bytes............................................................................................................... 10
Good Faith in Commercial Debt Collection...................................................11
Rejuvenate Yourself in Crested Butte........................................................12-13
Counsel Corner.........................................................................................................15
Fair Housing Month..........................................................................................16-17
Information for Your Clients............................................................................... 18
HOAs in a Pinch........................................................................................................19
Being a REALTOR® Has Advantages................................................................. 20
Provisions of the Economic Stimulus Bill for Homebuyers..................... 21
Writing Great Content for Your Website and Blog..................................... 22
Why PSF Dollars are More Important Now................................................... 23

The COLORADO REALTOR® is published by the: makes no warranties and assumes no responsibility for the accuracy
Colorado Association of REALTORS® or completeness of the information contained herein. The opinions
309 Inverness Way South, Englewood, CO 80112 expressed in articles are not necessarily the opinions of the Colorado
Association of REALTORS®.
(303) 790-7099 or 1-800-944-6550
This is a copyrighted issue. Permission to reprint or quote any material
FAX (303) 790-7299 or 1-800-317-3689. from this issue is hereby granted provided the Colorado REALTOR ® is
given proper credit in all articles or commentaries, and the Colorado
EDITOR: Tyrone Adams, tadams@coloradorealtors.com Association of REALTORS® is given proper credit with two copies of any
ADVERTISING/DESIGN: Monica Panczer, mpanczer@colorado- reprints.
realtors.com The term “REALTOR ®” is a national registered trademark for members of
the National Association of REALTORS®. The term denotes both business
The Colorado Association of REALTORS® assumes no responsibility for competence and a pledge to observe and abide by a strict Code of
return of unsolicited manu­scripts, photographs or art. The acceptance Ethics. To reach a CAR director who represents you, call your local
of advertising by the Colorado REALTOR does not indicate approval
® association/board.
or endorsement of the advertiser or his product by the Colorado
Association of REALTORS . The Colorado Association of REALTORS
® ®

[page 3]
Fly High with Our
Black Swan
Amy Dorsey, 2009 CAR President

In the past month I have been at meetings, simple solution, we MUST be diligent with
for CAR, in Washington, DC, Denver, and our work. We have Clients depending on us;
Nevada. A couple of weeks ago, many of us needing us to help them with their needs and
met in Denver for REALTOR® Day at the Capitol wants. The one truth that we do know about
and Winter Meetings. The “hot topics” at all our business is that it is about change; change
of the meetings were the current state of the in Sellers and Buyers lives. We help them
real estate markets throughout the State and with that change. As Larry Kendall, founder
Nation as well as President Obama’s Stimulus of The Group and a past Colorado ROTY often
Plan. While many of the predictions for the says, it is our job to assist our Clients to get to
rest of the year are that we will continue where they need to be when they need to be
to have sluggish difficult real there. And, in this day of extreme
estate and financial markets, who
“The ultimate news and uncertainty, it is our job
really knows? We are listening to measure of a man is to get up each morning and begin
many experts from economists not where he stands anew. One of my favorite quotes
to Wall Street authorities. This is,
in moments of from Martin Luther King, Jr. is, “The
as one financial advisor recently ultimate measure of a man is not
said, a market like no other, or a comfort but where where he stands in moments of
“Black Swan”. According to the he stands at times comfort but where he stands at
book, The Black Swan, by Nassim of challenge and times of challenge and controversy.”
Nichols Taleb humans are “blind” I don’t know how long this
controversy.”
to randomness, in our lives or the current state of affairs will continue.
significant shocks in our lives both I do believe that most of us need to
personally and professionally which were not continue our lives as normally as possible. We
expected. He believes that “Black Swan logic” must stop listening to the experts, as no one
makes what you don’t know far more relevant knows how long this recession will continue.
than what you do know. And, why would we decide it is going on
What does this have to do with real for a very long while? We might miss a
estate and our market? Quite simply we great opportunity, today, because of our
are, experiencing a Black Swan, a random assumption(s). During our recent CAR Board
unexpected but highly significant event in of Director’s meeting, my friend Sandy Trujillo,
our financial and real estate markets. Many of the Chair for South Metro Denver REALTOR®
you have been dealing with a difficult market Association gave the inspirational message
for some time. No one is quite sure how to at the beginning of our meeting. She related
“solve” this problem. While there is not one
continued on page 21

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[page 4]
 Learnin’ is Earnin’ Power
Now is a great time for you to take advantage of the numerous and various educational offer-
ings your REALTOR® associations are making available to you. The following are some of the
upcoming educational offerings that are available. Register online today for the topic of your
choice at www.ColoradoREALTORS.com under the Education tab.

Local Association Sponsored NAR Courses

Check with the following local associations
for more upcoming CE courses offered and to
register, unless otherwise noted.
Effective Negotiating- ABR Elective
Douglas Elbert Board, March 16, 2009
Resort and Second Home Markets
Durango, CO April 23-24, 2009
Vail, CO August 11-12, 2009
NAR Green Designation- Core Designation
Course
Loveland, CO April 7-8, 2009
South Metro Denver, CO May 4-5, 2009
NAR Green Designation- Residential
Elective Course
Jefferson County, CO March 3, 2009
South Metro Denver, CO May 6, 2009
Glenwood Springs, CO October 9, 2009

Institutes, Societies and Councils Anytime Classes - Online

CRB-Marketing Management: Attract &
Keep Customers for Life
Keystone, CO July 27-28, 2009
RESPA Review online course
http://car.knowledgefactor.com/
e-Pro
www.ColoradoREALTORS.com/Education

2009 Calendar of Events

March
20-24 AE Institute - The Broadmoor
May
11-16 NAR Midyear Legislative Meeting
and Expo - Washington D.C.
June
8-11 CAR Summer Conference & Bus.
Meetings - Crested Butte
October
18-20 REALTOR® World - CAR Convention
The Broadmoor, Colorado Springs
18-21 CAR Business Meetings
The Broadmoor, Colorado Springs
November
13-16 NAR Convention & Meetings
San Diego, CA

Go to www.ColoradoREALTORS.com for more information on these events and meetings.

[page 5]
It’s Time To Rally
REALTOR® Rally offers something for everyone

In just one day, see Colorado’s top speaking

talents present education sessions relevant
to you and your career. These instructors offer
real world lessons, timely tips and business
solutions you can put to work in your office
immediately.

Around 150 Exhibitors bring the latest real

estate industry tools, services and programs
to the Rally. Enjoy two great Keynote Ses-
sions with Larry Kendall and Lawrence Yun,
NAR Chief Economist. Plus several other great
Education Sessions will be held throughout
the day.

REALTOR® Rally sponsors go out of their way April 9, 2009

to provide this full day for more than 3,000 Colorado Convention Center
REALTORS®. Their participation helps keep
your registration fee down so be sure to thank
them with your business.

Register online at www.RealtorRally.org.

[page 6]
Classified Advertising
For Renting Residential
Properties: An Oxymoron?
This last month, I tried something I haven’t
done in years: a classified ad!! Given a proper-
ty that simply would not get rented I needed
to find that one tenant. So I tried an ad. The
results of my classified experience were less
than satisfactory. Thus the question posed in
this article’s title.
In the early days (1982) of doing property
management, using the newspaper was the
only way to go. It was inexpensive, hit the
market I needed, and could be changed (low-
ering price for example) as the need arose. As
time went by classified advertising got to be
much more expensive, thus creating angry
owners. I found myself defending the ever
increasing costs combined with decreasing
results. Within my local Denver market, the
daily papers seem to have lost around 35% of
their classified ads in the real estate section.
In the more rural areas of the state, that may
not be the case.
In those early days it was literally B.C. (be-
fore computers). I have been using internet
advertising exclusively for ten years. It would
seem that the personal computer has put
the world at everyone’s finger tips. Using the
internet for properties in all the different price
ranges has proven to be extremely effec-
tive. It provides an inexpensive, targeted and
changeable method of getting the property
advertised.
There are many sites that promise the
world, but deliver much less than that. Two
companies that I have found do a great job at
Free Goldfish!
We’ll get you hooked on our numbers.
Reach over 26,000 REALTORS® - and get
a new pet by advertising in the Colorado
REALTOR® Magazine.
Call 303.790.7099 for details.
[page 7]
By: Peter Meer
a very reasonable price. Rentmarketer.com
(talk with Lisa), and Rentals.com (talk with
Julie) provide great access to those seeking
a residential property tenant. Both of these
sites provide lots of room for your narrative
and for pictures. They also have some great
tracking tools that help you with the folks who
don’t leave a phone number.
There may be exceptions to my experience.
However, I believe that classified advertising
for renting residential rental property is truly
an oxymoron. Internet advertising is the
future, print media may be the past.
For further information about residential property
management contact the National Association of Resi-
dential Property Managers (NARPM) at 800-782-3452.
Peter Meer is President/Broker of Meer & Company, Inc.,
(303) 322-1550, and manages 150 single-family units
in metro-Denver.
Colorado’s finest selection...
extraordinary service
Louisville Showroom
1130 Pine Street
Louisville, Colorado 80027
Phone: 303.665.6850
Fax 303.665.6895
M-F 9:00am - 5:30pm
Sat. 9:00am - 4:00pm
Steamboat Showroom
445 Anglers Drive
Sundance at Fishcreek
Steamboat Springs, Colorado 80488
Phone: 970.879.8316
Fax: 970.879.8317
By Appointment
Toll Free 1.877.668.6844
www.mountainhighappliance.com
Housing & Economic Indicators
Current trends provided by NAR
www.realtor.org/research/research/ecoindicator

NAR’s analysis of housing and economic indicators provides real estate professionals with tools
to interpret the market and apply that knowledge to their business. In addition to NAR’s own
existing-home sales series, NAR Research monitors other indicators such as new-home sales,
housing starts, producer prices, mortgage rates and more.

Current Figures Period Covered

Existing-Home Sales Sales down 5.3 percent in January January
Pending Home Sales PHSI rose 5.2 to 87.7 December
Index
New-Home Sales Down 10.2% from last month January
Housing Starts SAAR* of 550,000 units (PDF: 29KB) January
Housing Affordability 158.8 - up 15.6 from previous month December
Mortgage Purchase Down 5.6% to 236.40 from last week March 4
Application Index
Fixed-Rate Mortgage Rate 5.13, up .06 from last week March 5
GDP Down 6.4% from last Quarter Q4 2008
Consumer Confidence Down 33.16% from a month ago February
Employment Situation Down 213,000 jobs to -533,000 November
Consumer Price Index Down .7% in December December
Producer Price Index Up to .8% from the previous month January
Retail Sales Up 1% from the previous month January

Learn more at www.realtor.org/research/research/ecoindicator

How FICO (Fair Isaac Corp.) Determines a Person’s Credit Score

• Payment history: 35 percent
• Amounts Owed: 30 percent
• Length of credit history: 15 percent
• New Credit: 10 percent
• Types of Credit Used: 10 percent

BACK TO
THE LAND!
Join RLI and earn
the ALC.

Learn from our top

rated education
courses!

Find us at
www.ColoradoRLI.com

[page 8]
SOLD WITH
PEACE OF MIND

Living comfortably while saving energy and money is on every

client’s new home list. With growing concerns about the
environment and rising energy costs, homes that earn the
ENERGY STAR® certification can really appeal to homebuyers. As
a realtor, you can offer invaluable insight on how your client can
lower their energy costs up to 30 percent, lessen maintenance
concerns, create healthier indoor air quality, and get a higher
resale value on their home. Learn more about how you can help
your client build a successful framework for the future.

Visit XcelEnergy.com/HomeEfficiency today.

© 2009 XCEL ENERGY INC.

[page 9]
News Bytes
No Negotiation of Pre-foreclosure Sales of the loan limits decreased for 2009, most
Commission areas will revert to the higher 2008 mortgage
According to Fannie Mae’s Servicing Guide, limit. HUD published the new loan limits in
Part VII, Section 504.02: Contacting Selected Mortgagee Letter 2009-07, which is effective
Borrowers as of March 1, 2009, closing of for any loan closed in calendar year 2009. The
pre-foreclosure sales may not be conditioned new limits are in effect through December 31.
upon a reduction of the total commission to Go to www.HUD.gov for more information.
be paid to real estate agents to a level below
what was negotiated by the listing agent
with the borrower, unless the fee exceeds 6
percent of the sales price of the property in RIGHT TOOLS
RIGHT NOW.
aggregate. Servicers are reminded that they
must continue to obtain any approvals that
may be required by interested third parties in
connection with pre-foreclosure sales.
Right Tools Right Now - For You
We Want You! To Become a CAR Leader NAR knows that the current state of the
Each year economy has affected your real estate
numerous business. We recognize the challenges you
members are facing and are here to help. Effective
choose to give immediately, NAR is launching the Right Tools
of their time and Right Now initiative for its members. This
expertise to lead program provides over 300 NAR publications,
the Colorado resources and services to you for FREE, at cost,
Association or at significantly reduced pricing. Go to www.
of REALTORS® ColoradoREALTORS.com to take advantage of
in varying this Association Stimulus program.
capacities.
Some positions Are You a Good Neighbor?
are elected and some are appointed. CAR is Submit your applications for the NAR Good
now accepting applications for the following Neighbor Awards that recognizes REALTORS®
2009/2010 Officers and NAR Directors who’ve made an extraordinary commitment
positions. The Officers and NAR Directors to improving the quality of life in their
applications are due no later than 5:00 pm on communities through volunteer work. Five
April 1, 2009. Go to www.ColoradoREALTORS. winners will receive $10,000 grants for their
com to apply today. cause. The 2009 deadline will be May 22. For
more information go to NAR’s website www.
Completed foreclosures down 15 percent REALTOR.org.
since 2007
According to the Colorado Division of Housing
the annual foreclosure activity in Colorado
has fallen for the first time since statewide
data was first collected in 2003. There were 15
percent fewer completed foreclosures during
2008 than during 2007, and there were 20
percent fewer completed foreclosures during
the fourth quarter of 2008 than during the
same period of 2007. By contrast, from 2006
to 2007, completed foreclosures increased 40
percent.

FHA Conforming Loan Limits Released

With the passage of the stimulus bill, the
maximum mortgage limit for an area is the
higher of the limit that was in effect for 2008
or the current 2009 limit. Given that most

[page 10]
Legal Digest
Good Faith in Commercial Debt
Collection
By: Jon Goodman and Jeremy Durham

The seizing of the credit markets seems the lender the time and expense of foreclos-
to have stalled all but the most conservative ing on the collateral. If the lender is unable to
commercial real estate loans. Many com- satisfy the debt with the collateral, then most
mercial real estate ventures are financed with borrowers expect the lender to next pursue
short term debt. Lenders are not renewing the borrowing entity, now typically a limited
loans that have matured. Other lenders are liability company. The guarantors (if there
not providing replacement financing. The in- are any) expect only to pay if the lender has
ability to get financing handicaps developers not first satisfied its debt through the sale of
from selling projects. While each lender may collateral or from the pursuit of the borrowing
be acting in its own best short term financial entity. Sureties, who have guaranteed debt
interest, the collective behavior increases the secured by real estate that is appraised for
number of defaulted commercial real estate more than the debt, do not expect to pay on
loans. their guarantees.
Developers generally expect that when Yet neither Colorado law, nor the loan
their loans secured by real estate go into de- documents signed by most borrowers and
fault, the lender will first seek to foreclose on guarantors, require the lender to proceed in
the collateral. The principals of many borrow- this order. In most situations, the lender may
ers are willing to facilitate “deed-in-lieu of fore- sue the guarantors without first foreclosing
closure” or “short pay off” transactions to save
continued on page 23

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Oakwood Homes is expected to open March 2009 with pricing from the upper $100,000s and 1 model. The Homeowner Value Package (Banning Lewis Ranch Metro District Operating Fee) is a required $91 per month fee for Northtree residents.

[page 11]
Rejuvenate
Yourself in
Crested Butte
2009 CAR Summer
Conference
June 8-11, 2009 Our Summer Conferences, billed as a
family affair, escapes each year to one of
When was the last time you have been to
Colorado’s mountain beauties that provides
Crested Butte, Colorado? Many of us have
educational opportunities, business and social
driven right through it on our way to another
connections, and fun. This year’s education
mountain or western slope destination
slate include “hot legal topics,” informative
or have never been there at all. It’s a pity
information on how to complete a short sale
because we have missed what so many others
and a motivational Keynote luncheon with
have discovered a long time ago- another
Terri Norvell. Plus for those interested a Fun
spectacular mountain recreational area
Run/Walk to help support our REALTORS® for
in Colorado. The Colorado Association of
Education program!
REALTORS® has now created an opportunity
for you and your family to visit “Colorado’s Last Register online today at www.
Great Ski Town” and “The Wildflower Capital of ColoradoREALTORS.com and join us, your
Colorado” by attending the 2009 CAR Summer colleagues and friends at the 2009 Summer
Conference and Business meetings that will be Conference and CAR Business meetings in
held June 8-11 at the Crested Butte Mountain Crested Butte.
Resort and Conference Center.

Summer Conference
Hotel Options
Book your hotel now so you can
RELAX & ENJOY!

CAR has reserved special rates at the following

hotels for you in Crested Butte:
Elevation Hotel and Spa: King or
Queen=$140.00
Lodge at Mountaineer Square: 1 BR
condo=$149.00, 2 BR condo=$209.00.
To reserve your room, call 1-888-443-6715
from 8am-6pm, and mention you are with
CAR, or go online to www.skicb.com/mygroup
and enter group # CAR. The cut-off date is
Sunday, May 10, 2009.

Resort Fee: Quoted rates do not include a nightly

resort fee of $12 which includes bottled water,
coffee service, complimentary high speed wire-
less internet, local phone calls, and access to
on-site fitness center.

[page 12]
Schedule of Events title sponsor: Gunnison Country Association of REALTORS®

MONDAY, JUNE 8 luck and incorporate this into your business

1:00 pm to 5:00 pm
Selling Energy Star, Selling Confidence
($40, 4 hours CE)
Location: The Lodge at Mountaineer Square
Register through Gunnison Association
5:00 pm – 7:00 pm
Mountain Region Hosted Reception: The
Mountain Region reception is always first-
class! Come mingle with your mountain and
resort area colleagues and enjoy some great
food and beverages! Location: Maxwells
TUESDAY, JUNE 9
7:30 am
3K Fun Run/Walk ($10)
Sponsored by: Realty TMS
Support REALTORS® for Education and start
your day off right with a healthy walk or jog.
8:30 am - 11:00am
Free Time: Enjoy local recreation - check at
registration for a coupon book.
8:30 am - 11:00am
Future Leaders Breakfast: Learn how to
become more involved in CAR leadership.
11:15 am -1:15pm
Keynote Lunch - “Create Your Own Luck”
with Terri Norvell ($55)
Ever wonder why some people seem to have
all the luck? It’s because some people have
adopted a system that enables them to plan
for luck. You can learn how to create your own
plan to succeed at negotiations, sales and
more.
EDUCATION COURSES
The following classes will be available at the
Summer Conference for $20, or for Free if you
select the “all conference package.”
1:30 pm - 2:45 pm
7 Keys to Short Sale Success, Jon Cole
Foreclosures are a growing part of today’s real
estate market. If you are looking for a way to
help distressed homeowners avoid foreclosure
by assisting them through a short sale, this is
the class for you.
3:00 pm - 4:30 pm
Legal Hotline Hot Topics, Steve Morgan
Here is your chance to get the answers to real
estate related legal questions featuring CAR’s
in-house legal counsel Steve Morgan.
5:30 pm - 6:30pm
PSF Reception - Drinking for Diamonds
Sponsored by: Land Title
Make your best investment in real estate by
supporting the Political Survival Fund. A $99
donation gives you a chance to win the dia-
mond, or $20 at the door to get in.
6:30 pm - 10:00pm
Dinner/Dance ($75)
Unwind and dine with your fellow colleagues
at the Dinner/Dance. After dinner you can kick
up your heels and dance the night away.

5 Reasons you should

come to Crested Butte
1. The cover of this magazine is just a glimpse of the beauty of Crested Butte.
You owe it to yourself to enjoy beautiful Colorado and learn something
new at the same time.

2. You can help Colorado’s economy by traveling locally this summer.

3. Develop networks across the state. You never know when a referral can
come in handy.

4. Help our Colorado teachers by participating in the Fun Run Walk for
REALTORS® for education.

5. You will get inspired and learn how to break through boundaries at the
Keynote Lunch with Terri Norvell. Don’t miss it!

[page 13]
Why PSF Dollars are More Important Now
These are times when we all need to bond
together to ensure that our interests as well
as our clients are represented and pro-
tected. We need to all give a little which will
add up to a lot. We all need to be creative in
finding a way to invest and make sure that
our priorities are in line - PSF is a priority.

As one of the state’s largest, voluntary pro-

By Bob Fullerton, CAR PSF Fundraising
Chair and Mountain District VP
Colorado Association of REALTORS® Political
Survival Fund (PSF) is the best investment
each and every member can make for their
industry and career- but at a time like this?
The answer is absolutely yes! Given that
housing has become one of the central top-
ics of discussion among our decision makers
in our state and across the country, PSF dol-
lars are now more important than ever.
fessional trade associations, it’s the perfect
situation for us all to act as one. A fair share
investment of $25.00 during the course of
this year is not a lot to ask. Heck, one news-
paper or radio ad, a couple morning coffees
or a night socializing will cost you more,
without a comparable return that PSF would
give you. In 2007 CAR fought to ensure that
the state continued to offer an appropriate
errors & omissions insurance policy, and at
a group rate – something that the Division
of Real Estate was recommending to be
discontinued. Maybe not in all, but certainly
in some instances, this was certainly worth
your $25.00 investment.

I am an everyday REALTOR® wondering how

We all have a responsibility to our profes-
I am going to keep my head above water
sion; don’t let others carry your weight. The
until things head in a more positive direc-
real estate industry is at the nexus of public
tion for us all, but it is my obligation as a real
policy discussion and there is a great oppor-
estate professional to educate and raise the
tunity to make our voices heard - let’s make
funds needed for this top priority cause.
sure we’re not asleep at the wheel.

Donate Online at www.ColoradoPSF.org

America’s First and Foremost Home

Inspection Association

To find an ASHI Inspector in your area,

go to www.ColoradoASHI.org

[page 14]
Counsel Corner
This column is a legal resource for local associations, local
association counsel, and REALTORS®.

PRESERVE YOUR PRIVILEGE

By: Dick Clark, Esq.
These are challenging times for sellers, instrument that is not a CREC approved form.
buyers … and REALTORS®. Transactions are Licensees have the right to complete the CREC
often complicated and REALTORS® must work approved forms but not draft new instruments.
hard to produce contracts and close deals. In When you include language in the “Additional
residential, commercial, and farm and ranch, Provisions” section of a CREC approved form, it
REALTORS® are being asked to address these must be transaction specific and result from ne-
complexities by drafting provisions for con- gotiations or instructions of the parties. When
tracts and amend/extends. This is a time for you find yourself trying to draft language con-
REALTORS® to closely adhere cerning complex terms (e.g. seller
to the limitations imposed on Don’t draft carry backs, back up contracts, seller
a real estate licensee’s privilege provisions of warranties, lease arrangements, etc.)
to complete standard forms in
the regular course of business
contracts or create please remember this article.
If the parties or the transaction
and advise the parties as to the instruments put you in the position of trying to
effects of those documents. that abuse this draft complex language or create
The privilege of real estate instruments not permitted by CREC
licensees to engage in a limited important privilege, Rule F-7, do yourself, your cus-
practice of law was extended by even if these times tomer, and your profession a favor:
the Colorado Supreme Court in
Conway-Bogue Realty Invest-
seem to require it. Recommend the parties contact an
attorney. If they don’t but your bro-
ment Co. v. Denver Bar Ass’n, kerage firm has an attorney, either
312 P.2d 998 (Colo. 1957) which is now codified in-house or out-house, get that lawyer involved.
at C.R.S. 12-61-803(4). Shortly after this opinion Your decision will help preserve this important
was announced, John Gorsuch, Esq., distin- privilege for you and your profession.
guished CAR legal counsel at the time, advised
that to maintain this privilege, licensee’s must
not abuse it. Now, more than 50 years later, I Dick Clark rclark@rothgerber.com or 303-628-9531
(direct) is a lawyer at Rothgerber Johnson & Lyons LLP.
remind REALTORS®: Don’t draft provisions of
He and the firm have served as legal counsel to CAR
contracts or create instruments that abuse this since 1990. The firm regularly advises and represents
important privilege, even if these times seem to brokers and brokerage firms to avoid liability and
require it. assure compliance with Commission rules. This Article
is published for general information purposes only.
Colorado Real Estate Commission Rules F-1
The content should not be construed as legal advice or
through F-6 set forth the modifications that opinion. You are urged to contact a lawyer concerning
licensees can make to CREC approved forms. your specific legal situation. Determination of the
CREC F-7 sets forth those commission ap- need for legal services and the choice of a lawyer are
extremely important decisions and should not be based
proved forms. Do not draft agreements or any
solely upon advertisements or self proclaimed expertise.

· Affiliated business · Licensing

arrangements · Listings and contracts
· Commission disputes and · Oil & gas leases
collections · Regulatory matters
· Environmental challenges · Tax matters

R
· Homeowners’ · Title issues
othgerber Johnson & Lyons has more associations · Trials/appeals
than 30 years’ experience advising real · Insurance
estate brokerage firms across Colorado
Contact Dick Clark at 303-628-9531 or
in commercial, residential, property manage- rclark@rothgerber.com
ment, investment, leasing, industrial, resort,
and farm and ranch transactions.
From listing and commission issues to
licensing, regulatory and tax matters, we assist
with the legalities of brokerage needs.

Denver · Colorado Springs · Casper 303-623-9000 · www.rothgerber.com

[page 15]
we’ve come a long way
But We are Not Done Yet!
Fair Housing Month
Declaring April is Fair Housing Month is more How can you stay out of hot water? Educa-
than just a reminder for you to do what should tion and more education! Staying current and
be a cornerstone of your business philosophy, up-to-date on Federal, State and your local fair
to paraphrase-treat all current, future and housing laws is a must because even though
potential clients and customers fair. It is also they may seem clear some situations can be
a time for the nation to celebrate the strides complicated. The changing nature of house-
we’ve made, and the work that holds, the differing views of what constitutes a
remains to be done. family, and the varying expecta-
“Federal law prohibits tions of housing consumers can
Most agree discrimination in
housing discrimination make your efforts to comply with
housing is much subtler today
than in decades past, but it does based on your race, all fair-housing laws and ethical
standards a challenge.
persist; be it out of ignorance or color, national origin,
intolerance. Either way it is still religion, sex, family There is ton’s of information
unacceptable and punishable available to you on the web
by law.
status, or disability.” about Fair Housing Laws at all
three levels. A good place to
How is the pledge of equal op-
start is HUD’s website www.HUD.gov.
portunity in housing upheld? The answer is
through widespread education and vigor- Just remember “not knowing what you don’t
ous enforcement. Only by achieving these know is not a good excuse” and the Office of
combined goals can we hope to convince Fair Housing and Equal Opportunity (FHEO)
the public and their elected officials that we won’t think so either. So as a reminder about
are talking not about a matter of charity, or our civil duties and for you to stay out of hot
majority rule, but of civil rights, which are put water know the law and practice it every day
upon each of us by virtue of our membership of the year, not just when you are reminded in
in American society. April.

[page 16]
Fair Housing Law
Do You Know the Law?

Civil Rights Act of 1866: The Civil Rights Act national origin, sex, marital status, age or
of 1866 prohibits all racial discrimination in because all or part of the applicant’s income
the sale or rental of property. derives from any public assistance program.

Fair Housing Act: The Fair Housing Act State and Local Laws: State and local laws
declares a national policy of fair housing often provide broader coverage and prohibit
throughout the United States. The law makes discrimination based on additional classes not
illegal any discrimination in the sale, lease covered by federal law.
or rental of housing, or making housing
Responsibilities: The home seller, the home
otherwise unavailable, because of race, color,
seeker, and the real estate professional all
religion, sex, handicap, familial status, or
have rights and responsibilities under the law.
national origin.
For the Real Estate Professional: Brokers in
Americans with Disabilities Act: Title III of
a real estate transaction are prohibited by law
the Americans with Disabilities Act prohibits
from discriminating on the basis of race, color,
discrimination against persons with disabili-
religion, sex, handicap, familial status, or na-
ties in places of public accommodations and
tional origin. A request from the home seller
commercial facilities.
or landlord to act in a discriminatory manner
Equal Credit Opportunity Act: The Equal in the sale, lease or rental cannot legally be
Credit Opportunity Act makes discrimination fulfilled by the real estate professional.
unlawful with respect to any aspect of a credit
application on the basis of race, color, religion,

Make an educated recommendation to your clients by recommending

a title company based on SERVICE, PROTECTION & COSTS

Provide your clients with a FREE advanced estimate of their title

insurance and closing costs.
Log on and Get a Quote

[page 17]
Information for Your Clients
MORTGAGE RELIEF PLAN DETAILS
President Barack Obama’s new mortgage relief
plan, launched last month, aims to help up to
9 million borrowers qualify for more affordable
mortgages and stay in their homes. Obama’s
“Making Home Affordable” program is designed
to work with lenders to modify the loan terms
for up to 4 million homeowners and to refi-
nance up to 5 million homeowners into more
affordable fixed-rate loans.
TO QUALIFY FOR REFINANCING
Only homeowners in good standing whose
loans are held by Fannie Mae or Freddie Mac
qualify.
DETAILS
• The property must be owner-occupied, and
the borrower must have enough income to
make payments on the new mortgage debt.
• Borrowers can’t owe more than 105 percent
of their home’s current value on their first
mortgage. For example, if your home is
worth $200,000, your first mortgage can’t
exceed $210,000. Borrowers with a second
mortgage still can qualify as long as their
first mortgage isn’t more than 105 percent of
their home’s value.
• Homeowners can’t take cash out during the
refinancing to pay other debt.
• Borrowers have until June 2010 to apply.
FANNIE MAE, FREDDIE MAC LOANS
Call your lender or mortgage servicer to see if
you have one. You can find the phone num-
ber on your monthly mortgage statement or
coupon book.
You can also contact Fannie Mae at
1-800-7FANNIE and Freddie Mac at 1-800-FRED-
DIE from 6 a.m. to 6 p.m. MST. Or, go to www.
fanniemae.com/homeaffordable and www.
freddiemac.com/avoidforeclosure and fill out
the online request forms.
TO QUALIFY FOR THE MODIFICATION
PROGRAM
Delinquent borrowers and current borrowers
who are at risk of imminent default are both
eligible.
DETAILS
•The program applies to mortgages made
on Jan. 1 or earlier. The mortgage payment
including taxes, insurance and homeowners
association dues must exceed 31 percent of
the borrowers’ gross monthly income.
[page 18]
• The property must be the homeowner’s
primary residence. Home loans for single-
family properties that are worth more than
$759,750 don’t qualify.
• The program is voluntary, relying on a $75
billion subsidy to encourage mortgage com-
panies to participate. Lenders must agree
to reduce the loan payments to 38 percent
of a borrower’s monthly income. After that,
the government and lender split the cost of
bringing the payment down to 31 percent.
• Eligible borrowers will have to provide their
most recent tax return and two pay stubs, as
well as an “affidavit of financial hardship” to
qualify. In the affidavit, applicants will have to
cite the reasons behind their financial woes,
such as job loss or a drop in income.
• Borrowers are only allowed to have their
loans modified once. The program runs
through Dec. 31, 2012.
IN BANKRUPTCY OR LITIGATION
Borrowers in litigation can modify their home
loans without waiving their legal rights. To get
help for the modification program, call your
lender or mortgage servicer. For the refinance
program, find out if your mortgage is held by
Fannie Mae or Freddie Mac, then contact your
lender, mortgage servicer or a mortgage broker
for refinancing options.
When you can get help? Both the modification
and refinancing programs start immediately.
For those with FHA, VA or USDA home loans
Mortgages backed by the Federal Housing Ad-
ministration, Veterans Administration or the U.S.
Department of Agriculture are being modified
under other programs. The Obama administra-
tion and Congress are working on legislation
that would allow modifications of these home
loans consistent with the Making Home Afford-
able program.
Source: Inman News
 HOAs in a Pinch
By: Tony C. Boone, Esq.

A Virginia based law firm, Vanderpool,

Frostick & Nishanian (VF&N) is hearing from
local Home Owners Associations (HOA) with
an increase in home foreclosures and renters collectable,” said Boone.
throughout the area. Even high-end neigh- The drawbacks to skipping the lien stage
borhoods have experienced some loss of and proceeding directly to the courts is that
revenue as a result of foreclosures; usually it’s more expensive and time-consuming to
from investors that bought with the intention collect member fees, because a lawsuit or
of “flipping” a home. HOA members and HOA series of lawsuits is required.
organizations need to be aware of the litiga- Another big problem that the foreclosure
tion issues that can arise from foreclosures. crisis has brought to the HOA communities
“In the past, an HOA had recourse for is the prospect of renters. Complaints about
delinquent accounts because of the HOA lien,” renters include:
said Tony Boone, Esq., real estate develop- • Too many people living in one home -The
ment and real estate transaction attorney with issue of too many people residing in one
Vanderpool, Frostick & Nishanian in Manassas, home is even more prevalent as more families
Va. “However, it didn’t take long for HOAs to lose their homes and move in with friends and
realize that an HOA lien can be wiped out by other family members. This also affects park-
virtue of a foreclosure and that HOA liens are ing since more people in one house can also
only good for a limited time,” said Boone. lead to several cars. HOAs often don’t have
HOAs are feeling the pinch because before the authority to evict people if there are no
the foreclosure rate increased, HOAs had covenants relating to the number of people
sufficient time to recoup HOA fees, especially in a home. Complaints can be directed to the
when people were refinancing every six applicable zoning administrator for enforce-
months because lenders would require that ment. This process will generally solve the
these liens be satisfied prior to a refinance. problem, although it can be a long process.
“Current housing market conditions have • Property is in a state of disrepair - Al-
rendered the HOA lien a less attractive ap- though it can’t be generalized, the perceived
proach and this phenomenon has caused assumption is that renters simply do not treat
many HOAs to skip the lien stage and proceed a home, or a neighborhood, with the same
directly to the courts to obtain monetary care and consideration that a homeowner
judgments against the delinquent hom- does because there is no vested interest and
eowners,” said Boone. “The advantage of this the HOA may only enforce its covenants by
procedure is that once judgment is obtained proxy through the landlord. This often results
and properly docketed, a lien is obtained that in a contentious dispute with the landlord
follows the debtor for at least 20 years, so after because most landlords in this poor housing
a foreclosure the monetary judgment is still market do not want to evict paying renters,
while they also don’t want to pay a fine as a
result of the renter’s behavior.
©2007 National Association of REALTORS

• Homeowner/Renter complaints against

the HOA for what is perceived as overly ag-
gressive enforcement of covenants - Many
homeowners and renters also take issue with
HOAs for being overly aggressive and for
unfair enforcement of their covenants, which
can also lead to contentious, time-consuming
litigation issues.
For more information on Home Owner
Association (HOA) legal issues due to foreclo-
sures, contact Vanderpool, Frostick & Nisha-
Think of it as a nian, P.C. at 703.369.4738 or info@vfnlaw.com.

new business magnet.

Your REALTOR® pin does more than just identify you as a starts conversations. Simply wearing it lets potential buyers
proud member of the National Association of REALTORS®. It’s and sellers know on sight alone, that you’re the person they

[page 19]
a powerful new business tool, one that attracts attention and can trust for all their real estate needs.

Tell them. Show Them.

Wear your REALTOR® pin with pride.
 Being a REALTOR®
Has Advantages

“Just what, exactly, do I get for my dues?”

Think about what your membership in the Colorado Association of REALTORS® means
to you. Some of the benefits include having a strong voice in government, having access to
professional development, and having access to current real estate news and information. But
did you know you also can receive discounts on many products and services you use everyday.

REALTOR® ADVANTAGE PARTNERS T-Mobile: CAR members can take

CO Alarms: Purchase high quality Carbon
Monoxide alarms in bulk at a discount.
Visit www.logisticssupply.com and use
Login:119008 and Password: 7099 or call
866-577-4477, ext 3421.
CREC Contracts: Agent Form Manager
real estate contract software is available to
CAR members for only $40 for a 12-month
license. Get your copy today at www.
AgentFormManager.com. Enter coupon
code “CAR” during on-line checkout for your
Colorado REALTOR® discount.
Health Insurance for CAR Members:
Nicholas Hill Benefit Group, Inc., is proud
to offer you their specialized service created
to assist Colorado Real Estate Agents in their
search for the right plan at the right price. To
learn more, call 1-866-631-1709.
Nationwide: CAR members can receive
a special discount on auto insurance from
Nationwide®. Contact agent Andrew Weaver,
LUTCF, Mountain Plains Agency, LLC,
at 877-609-0800, or email: weavea11@
nationwide.com.
advantage of several discounts.
For new service or to transfer your
current number to T-Mobile call 1-866-
464-8662 and use promotional code 9727
TMOFAV; Existing T-Mobile users call 877-
453-8824 and reference Node 4471650.
UPS Overnight: Save on overnight shipments
– discounts include $1.50 off UPS Next Day
Air Letters and 10% off UPS Next Day Air.
Call (800) 325-7000, and mention code
#P6000983A5.
FREE STUFF
Legal Hotline: is a free service that allows
broker members to get free legal information
via a 1-800 hotline during the work week.
Technology Helpline: CAR members
can call the Technology Helpline FREE at
1-866-432-3027(toll-free) between the hours
of 8a.m. and 5p.m. Monday through Friday.
Colorado Drug Card: Gain access to a FREE
Prescription Discount Drug Card program
called Colorado Drug Card. Sign up on the
CAR website.

Visit the “Resources” tab at www.ColoradoREALTORS.com to learn more a

bout the above benefits and FREE Stuff.

[page 20]
President’s from page 3
a humorous, but touching story about David
and Goliath. We all know how that ended,
and more importantly, it had a happy ending.
Not because David listened to the experts
and measured “his odds”, instead he defied
the odds and the professionals because he
believed he could accomplish his mission.
My last article in the Colorado REALTOR®
asked for PSF Contributions. I had e-mails
asking me if I am crazy as it is such a tough
year and I am asking for “money.” Last
check-up, I was not declared certifiable. But,
I know that we must use ALL of our resources
this year to continue to deal with legislative
policy, our local real estate markets, and our
emotional states. It won’t be easy; there is a
cost. A positive outcome is worth the cost and
the fight.
Another friend, Pete Seibert, Jr., a REALTOR®
and great broker, once told me a story about
his parents. His father, Pete Seibert, Sr.
discovered and developed Vail Mountain.
During the early years of Vail when the only
way to and from Denver was over Loveland
Pass, Mr. and Mrs. Seibert, Sr. were traveling
over the Pass in a terrible snow storm. It
was in the days of rear-wheel drive. Pete, Sr.
realized he needed more weight in the back of
the car for traction. He gave his wife a choice;
get in the trunk or drive. While she disliked
both options, in the end she chose the trunk.
And, happily, the Seiberts were able to reach
their destination (true story).
Many of us would have turned back in that
dire severe storm. Pete, Sr. was NEVER one to
be deterred. He was always on purpose, and
in this instance, he wasn’t turning back. That
is true for us; we must not be dissuaded this
year. We are on a mission! Enjoy spring, and
if I haven’t told you recently, thank you for
allowing me this year to work on your behalf.
COLORADO CRS CHAPTER #1
CRS 204 Building Wealth through
Residential Real Estate
April 14th - 15th, 2009
2009 CLASS SCHEDULE
Instructor: Dale Carlton
Co-Sponsor: Denver Board of REALTORS®
Course descriptions & registration at www.ColoradoCRS.com
All courses are $250 or $225 for Chapter Members.
[page 21]
Provisions of the
Economic Stimulus Bill
for Homebuyers
This is a great time to buy a home, condo or town-
house with the new $8,000 housing tax credit. This is
available for first time home buyers, if you buy before
December 1, 2009. If they ever wanted to buy a home,
now is the time. Read below what the provisions are
to take advantage of this great opportunity.
Time frame to buy? - By December 1, 2009
First-time home buyer? - A buyer who has not
owned a home for three years.
Married first-time buyer? - Both buyers have not
owned a home for three years.
Claim tax credit? - Claim the tax credit on your
federal income tax return.
Other form or forms? - No other form except your
federal income tax return.
Credit limits? - Single $75,000, Married $150,000.
Building a custom home? - You qualify, but you
have to occupy the home by Dec. 1, 2009.
Buying a new home? - You qualify, but the settle-
ment day has to be by Dec. 1, 2009.
Tax credit pay back? - You are not required to repay
except for certain conditions.
Access the tax credit now? - Change your withhold-
ing numbers.
Mortgage Revenue Bonds? - Allow tax credit home
buyers to participate.
Loan credit? - State housing finance agencies to help
buyers at closing by advancing the credit amount as
a loan.
CRS 205 Financing and Tax Class
– Newly Revised, Two Dates & Locations
May 18 - 19th, 2009
Instructor: Pat Zaby
Co-Sponsor: Aurora Assoc. of REALTORS®
November 3rd - 4th, 2009
Instructor: Tina Daniel
Co-Sponsor: Denver Board of REALTORS®
Writing Great Content for Your
Website and Blog
By: Peyman Aleagha
President - RealtySoft.com
Real estate is “location, loca-
tion, location!” And, website
or blog search engine visibility
is “content, content, content.”
Don’t get caught up in hiring
SEO (Search Engine Optimiza-
tion) “Gurus” who promise top
search engine positions in a
hurry. A few may be able to do
some good, but the tactics used
are almost always discovered
by the search engines, and your
positions suffer quickly.
Another problem with prom-
ises of position is what key phrases the posi-
tions are showing for. It is relatively easy to get
top positions for phrases or key words nobody
uses in their searches. It’s like searching for
your own name in Google. You’ll find that you
show up right at the top, but who is searching
for real estate in your area with your name?
The search engines are constantly changing
their criteria and algorithms. They are getting
better all the time at locating the most rele-
vant content for the search term entered. Part
of that is your site’s overall coverage of that
term and related terms that they have identi-
fied. Google has created “related term” lists for
“real estate.” They are secret, but likely include
terms like title insurance, deeds, surveys, etc.
Your site will begin to gain attention from the
search engines over time with your content.
That’s content about all kinds of topics related
to your area and real estate. Write about:
• YourTown real estate
• Title insurance and binders
• Homeowner concerns and insurance
• Valuation of a home
• Land use regulations and building codes
• MLS home searches and how-to’s
• General area information
• Schools and government information
• The list goes on and on
What you want is an ever-growing body of
content that is related to living in your area,
and buying and selling real estate. Yes, it’s a
lot of work. But, your future income from the
Internet is dependent upon it. Remember
though that your customer is the site visitor,
[page 22]
not the search engine. So, all content should
be written for that visitor, easy to read, and full
of information. Then, just try to work in your
key words and phrases in page titles and in the
text. Remember, visitor first, search engines
second. If you don’t do it this way, you may
lure a visitor from a search, but they won’t stay
long enough to become a commission.
If you agree that you need lots of quality
content, where in the world will it all come
from? You don’t have to write it all. Get an
assistant, hire a friend, or use freelancers from
sites like eLance.com and Guru.com who are
bidding to write real estate content. Some
other free ways include:
• Associations and subdivisions news
• Business owners and vendors
• Local government personnel
• Reverse networking and content to boot
Virtually anyone who has anything to do
with the home is a great resource for articles
for your site. They’ll write how-to’s and advice
for your site visitors, and they’ll do it for a link
to their site. If they don’t have a site, they will
do it for a mention of their business, phone
number and email address. These articles will
be full of relevant key words for a real estate
site. And, your visitors will get good hom-
eowner information as well.
See, it’s not a task you should fear. Get out
and start generating content that doesn’t need
to come from your fingers.
Peyman Aleagha is the founder and President of Realty-
Soft.com. RealtySoft provides Realtors with Real Estate
Web Design at http://www.realtysoft.com.
 invest in your community
... and in Colorado by making sure your earnest money is deposited in a CARHOF account.

CARHOF – the Colorado Association of REALTORS® Housing Opportunity Foundation – collects the interest earned on earnest money
and donates the money as grants to nonprofit and public housing agencies.

The contribution from interest on earnest money deposits in real estate transactions goes to support:
• Community homeless shelters
• Down payment assistance programs
• Development of affordable housing
• Mortgage/rental assistance to prevent homelessness
• Shelters for victims of domestic abuse
• Disaster relief and more...

Since 1990, CARHOF has donated $6 million, helping thousands of needy citizens throughout Colorado experience an improved
lifestyle as a result of CARHOF’s housing grants. Invest in your community TODAY!

www.CARHOF.org
Legal Digest from page 11
on the debt. In the vast majority of single Read the full article online at www.Colorado
family financing, the lender first forecloses REALTORS.com under “Legal Tools.”
on the property and only considers pursuing
borrowers or guarantors individually after the Jonathan A. Goodman is a shareholder in Frascona,
foreclosure. However, as real estate becomes Joiner, Goodman and Greenstein, P.C., a Colorado law
less liquid, commercial lenders are increas- firm. He can be reached is available at jon@frascona.
ingly suing the individuals who are personally com. Jeremy S. Durham is a law clerk at Frascona,
Joiner, Goodman and Greenstein, P.C. Disclaimer
liable on the debt, without first completing
-- Content is general information only. Information is
the foreclosure on the property. While doing
not provided as advice for a specific matter, nor does
so may be legal, lenders must still comply with its publication create an attorney-client relationship.
the covenant of “good faith and fair deal- Laws vary from one state to another. For legal advice
ing” when exercising the lender’s collection on a specific matter, consult an attorney.
remedies. This article explores lender’s duty of
good faith and fair dealing.
Every contract creates an implied duty of Get educated…
good faith and fair dealing. Wells Fargo Realty
Advisor Funding Inc. v. Uioli, Inc., 872 P.2d
Get designated...
1359 (Colo. App. 1994). Among other things,
the Uioli lender deliberately delayed the ONLINE!
foreclosure process to increase the debt as the
value of the collateral substantially exceeded Earn your CE in the comfort of
the value of the debt. The lender pressured your home, office – anywhere.
its own in-house appraiser to decrease the www.ColoradoREALTORS.com/Education
estimated value of the collateral securing an
promissory note to trigger a call on the loan.
It is inevitable that this real estate bust will
provide fresh new examples.

[page 23]