{"data":{"id":"us-co/c.r.s.-12-10-403.5","jurisdiction":"us-co","citation":"C.R.S. § 12-10-403.5","heading":"Broker engagement contracts - residential premises - prohibited terms - unfair or deceptive trade practice - definition.","body":"(1) As used in this section, unless the context otherwise requires, \"broker engagement contract\" means a written contract in which a seller, buyer, landlord, or tenant of a residential premises becomes the client of a broker or agrees to retain the services of a broker in the future and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another person in exchange for the broker:\n\n(a) Producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the residential premises; or\n\n(b) Performing other services.\n\n(2) A broker engagement contract must not:\n\n(a) Purport to be a covenant running with the land or to be binding on future owners of interests in the real property;\n\n(b) Allow for assignment of the right to provide service without notice and agreement of the owner of the residential premises; or\n\n(c) Purport to create a recordable lien, encumbrance, or other real property security interest. Any such lien, encumbrance, or other real property security interest is void and unenforceable.\n\n(3) A person that offers to a consumer a broker engagement contract that includes a provision in violation of subsection (2) of this section commits an unfair or deceptive trade practice, as provided in section 6-1-105 (1)(rrr).\n\n(4) This section does not apply to:\n\n(a) A home warranty service contract, as defined in section 12-10-901 (2)(a);\n\n(b) A building warranty or similar product that covers the cost of maintenance of a major housing or building system, such as a plumbing or an electrical system, for a specific period of time after the date on which a house or building is sold;\n\n(c) An insurance contract;\n\n(d) An option to purchase, a put requirement to purchase, a right of first offer, or a right of refusal;\n\n(e) A declaration created in the formation of a common interest community, as defined in section 38-33.3-103 (8), or an amendment to the declaration;\n\n(f) A maintenance or repair agreement entered into by a unit owners' association, as defined in section 38-33.3-103 (3);\n\n(g) A loan or a commitment to make or receive a loan, which loan or commitment is secured by real estate;\n\n(h) A security agreement under the \"Uniform Commercial Code\" relating to the sale or rental of personal property or fixtures;\n\n(i) Water, sewer, electrical, telephone, cable, or other regulated utility service providers; or\n\n(j) A property management agreement by which the owner of real property contracts with a party to provide management services for the maintenance, ownership, operation, or lease of a residential premises.","path":["Title 12 - PROFESSIONS AND OCCUPATIONS","Article 10 - Real Estate","Part 4 - BROKERAGE RELATIONSHIPS"],"source_url":"https://olls.info/crs/crs2026-title-12.htm","current_through":"Colorado Revised Statutes 2026","vintage":"","retrieved_at":"2026-09-14T18:37:45Z","sha256":"3b92f228a6deeb271d1a9abac51d8d0accb44e2e2fe8ceabfccb7608743c3c6b","source_id":"us-co","stale":false,"prev":"us-co/c.r.s.-12-10-403","next":"us-co/c.r.s.-12-10-404"},"notice":"GroundRules: Original legal text. Not legal advice."}