Colorado Realtor Magazine Feb 2010

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REALTOR®

A publication of the Colorado Association of REALTORS®

February 2010

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Adapting to ChangeThe changing face of real estate.

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Post Foreclosure Evictions

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CommercialForecastWhat to expect in Colorado in 2010.

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economic update:colorado’s economy looks up in 2010See what area’s of Colorado’s economy are suppose to rebound in 2010 and more inside.

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colorado

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The COLORADO REALTOR® is published by the: Colorado Association of REALTORS®

309 Inverness Way South, Englewood, CO 80112(303) 790-7099 or 1-800-944-6550FAX (303) 790-7299 or 1-800-317-3689.

EDITOR: Tyrone Adams, [email protected]/DESIGN: Monica Panczer, [email protected]

The Colorado Association of REALTORS® assumes no responsibility for return of unsolicited manu scripts, photographs or art. The acceptance of advertising by the Colorado REALTOR® does not indicate approval or endorsement of the advertiser or his product by the Colorado Association of REALTORS®. The Colorado Association of REALTORS®

makes no warranties and assumes no responsibility for the accuracy or completeness of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Colorado Association of REALTORS®.This is a copyrighted issue. Permission to reprint or quote any material from this issue is hereby granted provided the Colorado REALTOR® is given proper credit in all articles or commentaries, and the Colorado Association of REALTORS® is given proper credit with two copies of any reprints.The term “REALTOR®” is a national registered trademark for members of the National Association of REALTORS®. The term denotes both business competence and a pledge to observe and abide by a strict Code of Ethics. To reach a CAR director who represents you, call your local association/board.

Table of Contents

As shown in the graphic above, vacancy rates have tracked fairly closely with unemployment rates since at least 2000.

Source: DOLA

President’s Corner .............................................................................3Counsel Corner ...................................................................................4Economic Outlook ........................................................................6-710 Ways to Save Money ...................................................................7Big Changes for Post-Foreclosure Evictions.............................8CARHOF Celebrates 20th Anniversary in 2010 .......................9Commercial Forecast...............................................................10-11Professional Standards ................................................................. 12Limited Affordable Health Insurance ...................................... 13News & Events ................................................................................. 14

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President’s Corner

Adapting to Change

An unknown author once said “Life is change. Growth is Optional. Choose wisely.”

One of the best ways to choose wisely is to learn what is needed so you can adapt to the needs of your customers. Your state association- the Colorado Associa-tion of REALTORS® (CAR) has already tak-en a step by conducting a comprehensive phone survey with its members. Through this survey we are hoping to gain insight into what we can do to meet your career needs and increase our value proposition to you as an association.

One new program that will come to frui-tion this year will be our research pro-gram. CAR has joined the Colorado State University Everitt Real Estate Center and together we will produce accurate de-liverables on all of Colorado’s real estate markets (county level). This information will give our local associations and our members more crucial information that affects their business and their consum-ers.

We are also renewing our efforts in the political arena through our Political Survival Fund (PSF) and Legislative “Call to Actions.” These two vital cogs to our associations, nationwide, provide the protection we need to conduct business and give our consumers the opportunity to buy, sell and own real estate with the least governmental interference.

As local, state and federal governments are looking to pay for stimulus programs, balancing their budgets, and pay for the essential and not so essential gov-ernment services, homeowners have targets on their backs as they look for new funding. Often the first suggestions are proposed real estate transfer taxes, increased property taxes and increasing taxes on government services both which hurt property owners and small business. Don’t sit on the sideline, it is vital that each REALTOR® steps up and donates to PSF, even during these tough times; and answer the “Call to Actions” that will be sent to you throughout the year by your REALTOR® associations. Please budget an annual minimum of $25 per year to sup-port your practice and the property inter-est of your clients. Don’t you think your

We are already two months into 2010! My business and your business have changed quite a bit since we first became REALTORS®. Today’s economy has forced change on many facets of our lives personally and in our careers- some good, some not so good. Either way when we are forced to change those entities, organizations and associations we have come to rely on, they must change too.

By: George Harvey2010 CAR President

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Counsel Corner

BROKERING TRANSACTIONS IN A CHALLENGING ECONOMY:This column is a legal resource for local associations, local association counsel, and REALTORS®.

By: Dick Clark

The year of 2009 was tough for real es-tate. Many economists predict that 2010 will bring improvement but undoubtedly REALTORS® will continue to see short sales, deed-in-lieu transactions, and fore-closures. Thus it is important for REAL-TORS® to stay abreast of new state and federal laws which pertain to economi-cally challenged real estate transactions.

Although most REALTORS® are familiar with laws enacted in 2008 and 2009

which seek to regulate these transac-tions and impact the brokers role

in them, there are a couple of more recently enacted statutes of

importance.

PROTECTING TENANTS AT FORE-

CLOSURE ACT OF 2009 (PTFA)

Effective May 20, 2009, Congress enacted the PTFA which is designed to protect tenants in any foreclosure of a federally related home loan. The winning bidder at the foreclosure sale must honor the lease term of any residential lease which (a) was executed prior to the issuance of the foreclosure notice, (b) was the result of an arms

length transaction, (c) does not have rent substan-

tially less than fair market,

and (d) is with a tenant who is not the defaulting borrower or that borrower’s child, spouse, or parent. If the successful bidder sells the property to a purchaser who will occupy it as a primary residence, then the successful bidder must give the tenant 90 days notice to vacate even if the lease is month to month.

COLORADO’S FORECLOSURE DEFERMENT ACT

Effective August 1, 2009, the Colorado legislature enacted House Bill 1276 which established a foreclosure defer-ment program for borrowers who satisfy the following eligibility requirements:

a)Reside in the property as borrower’s primary residence on the date the fore-closure was filed and intend to continue to reside in the property; and

b)Be personally obligated on the loan which had an original principal balance not in excess of $500,000.

Eligible borrowers are entitled to de-fer the foreclosure for a period not to exceed 90 days during which the Public Trustee continues the sale date. The Act also imposes certain obligations on the foreclosing lender, including a require-ment to post the property with a Notice of Opportunity for Foreclosure Defer-ment within 15 days after the foreclosure is commenced. The Colorado Division of Housing provided a template for the No-tice at www.dola.state.co.us/cdh/foreclo-surenotice. The Act provides temporary relief and will sunset on June 30, 2011.

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Both statutes are more complex than described in this short article, so if you encounter these situations you are encouraged to consult legal counsel to understand the process, uncertainties and limitations. We expect the economy to rebound during 2010 and hopefully, the number of new foreclosures will plummet. However, stimulus funds may have created a false economy so keep the laws and forms available that pertain to

short sales, deed-in-lieu transactions, and foreclosures.

Dick Clark [email protected] or 303-628-9531 (direct) is a lawyer at Rothgerber Johnson & Lyons LLP, a regional law firm having a diversi-fied practice in most major areas of law from offices in Denver, Colorado Springs and Casper. He and the firm have served as legal counsel to CAR since 1990.

We expect the economy to rebound during 2010 and hopefully, the number of new foreclosures will plummet.

Rothgerber Johnson & Lyons has more than 30 years’ experience advising real estate brokerage firms across Colorado

in commercial, residential, property manage-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.

· Affiliated business arrangements

· Commission disputes and collections

· Environmental challenges · Homeowners’

associations· Insurance

· Licensing· Listings and contracts · Oil & gas leases· Regulatory matters · Tax matters· Title issues · Trials/appeals

Contact: Dick Clark - Kristin Bronson303-623-9000

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

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

Learn from our top rated education courses!

www.ColoradoRLI.comFind us at

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ECONOMIC OUTLOOKEconomist predict a brighter future in 2010

The common theme for the numerous Economic Forecasts is the transition from 2009, which many are comparing to the 1930s era of the Great Depression, will be a slow one but that the most painful times are over. However according to various reports two events must take place before the Colorado economy can begin to grow again. The first of these events is a return of U.S. economic growth, which has been under-way since last summer. The second event is a return of global economic growth, a development, which many also feel is underway.

Below is information about other sectors:JobsColorado’s job decline during the last year reached an estimate at 3.8 percent that helped the unemployment rate reach a high of 6.9 percent in 2009. Colorado’s unemployment rate, is predicted to be 7.3 percent for 2010, and will average 8.1 percent in 2011 according to Vectra Bank.

Construction will remain the hardest-hit sector, losing 9,000 jobs or 6.6 percent of its workforce next year.Employers will shed a net 3,200 non-farm jobs next year, mostly in the first half. Even with those forecast losses, Colorado will still rank among the top 10 states for job creation in 2010, predicts economist Richard Wobbekind, who oversaw the forecast for the University of Colorado Leeds School of Business.Although builders are expected to pull more residential permits next year, it is being anticipated that it won’t be enough to make up for a deepening slump in commercial real estate.With many calling economic develop-ment a three part process…attraction of outside existing or new employers, reten-tion of existing employers and expansion by existing employers, it is also predicted competition will increase among states to attract jobs, with Colorado focusing on companies further west.

Slumping housing market, collapse of financial institutions, over ex-tended consumers, tight credit markets, volatile oil prices and consumer fears is what most economist and business experts predicted in 2009. It appears most were right. For 2010 they are predicting a brighter future and everyone else is hoping this prediction comes true as well.

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Colorado’s unemployment rate, is predicted to be 7.3 percent for 2010, and will average 8.1 percent in 2011.

10 ways to save

m o n e yTake advantage of the following discount programs you get for being a CAR member.

American Furniture Warehouse: Looking for the perfect closing gift? AFW will discount $25 for each $100 gift card purchased by CAR members up to a $500 gift card.

CO Alarms: Purchase high quality Carbon Monoxide alarms in bulk at a discounted rate.

CREC Contracts: Agent Form Manager real estate contract software is available to CAR members for only $50 for a 12-month license.

iHOUSEweb: CAR Members get half off the startup fee on any of their products.

Health Insurance for CAR Members: Nicholas Hill Benefit Group, Inc., is proud to offer you their specialized service created to assist REALTORS®.

Nationwide: CAR members can receive a special discount on auto insurance from Nationwide®.

T-Mobile: CAR members can take advantage of several discounts.

UPS Overnight: Save on overnight shipments from UPS.

RMD Signs: CAR members receive discounts on sign merchandise.

Learn more at the “Useful Info” tab at www.ColoradoREALTORS.com

HousingThe housing sector will continue to rebound slowly with the help of attractive 30 year fixed rate conventional mortgages in 40 years, although it is predicted they will not be around later in 2010 as the Federal Reserve concludes its purchase program and begins to sell its securities. In addition you have the homebuyer stimulus tax credit that only 39 percent of Coloradoans have taken advan-tage of so far. Even with these attractions painful job losses and home prices fluctuat-ing continues to make it tough on homeown-ers who can refinance their mortgage and for those who want to take advantage of the stimulus programs and finance a new home.

clients deserve this investment on their behalf? Be sure to tell them you are there for them and their property.

CAR will continue to search for ways to make sure your best interests are served. If you feel we are falling short in a particular area we would like to hear from you. The only way we can make a change is to know that there is a change to be made.

You can contact your state association office at 1-800-944-6550/303-790-7099 or you can use our online live chat feature at www.ColoradoR-EALTORS.com. Lastly, you can email me directly at [email protected] or call me on my direct office line at 970-369-5373.

Sincerely,

President’s from page 3

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Big Changes For Some Post-Foreclosure Evictions

Until May of 2009, the recipient of a Public Trustee’s deed (the “PT Deed”) following a foreclosure sale could immediately begin the eviction process of any occupant of a residential property in Colorado.

Now, with the passage of the Federal Protecting Tenants at Foreclosure Act (the

“Act”), depending on the circumstances, options available to the recipient of a PT Deed for gaining possession of property may be severely curtailed. While short, the Act

is not well written. Unfortunately, the many ambiguities contained in the Act will likely be left to the court system to sort out. (A separate article concerning the ambiguities in the Act will follow soon.)As written, the Act applies to all foreclosure sales on any dwelling or residential real prop-erty after May 20, 2009 if the property is oc-cupied by a tenant with a bona fide tenancy. According to the Act, a tenancy or lease will be considered bona fide if:

1.The tenant is not a child, spouse or par-ent of the debtor; 2.The lease or tenancy was formed in

an arms length transaction; and3.The lease or tenancy provides for

rent that is not substantially less than fair market value.

An initial hurdle for foreclosure bid-ders is trying to determine whether there is a bona fide lease or tenancy prior to a foreclosure sale. After the Public Trustee issues a deed to a property, the recipient has the right to determine who is living in a property and under what circumstances. Obtaining this information pre-sale may prove to be difficult for poten-tial bidders as the occupants have no duty to cooperate.Of the above criteria, the first will likely be the easiest to establish. With respect to the

By: William Robinson

remaining two, while the Act does not specify who has the burden to demon-strate the arms length and fair market nature of the lease, experience suggests that the recipient of the PT Deed will need to convince a judge that one of these factors is not present to successfully evict a tenant earlier than the Act allows. Further, the Act’s use of the phrase “not substantially less than fair market” pro-vides an additional hurdle to the recipi-ent of the PT Deed as substantial is left undefined.If a tenant with a bona fide lease or tenancy occupies a foreclosed property, under the Act, the recipient of a PT Deed cannot start an eviction for a minimum of 90 days (assuming the tenant complies with the terms of the lease post-foreclo-sure). The Act will likely be interpreted to allow for this minimum 90 day notice to quit a property in only the following three situations:

1. The recipient of the PT Deed intends to occupy the property as a primary residence;

2. The recipient of the PT Deed provides the required 90 day notice and then sells the property to someone who intends to occupy the property as a primary residence; or

3. The tenant or occupant is without a lease or with a lease which can termi-nate in a shorter period of time under state law.

So, if the property is going to be utilized as a primary residence, or if the tenant has a weekly or monthly rental or a lease

Continued on page 15

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To donate to $20 for 20 years, visit www.carhof.org.

When a small group of creative REAL-TORS® got together in 1990 to discuss ways to promote affordable housing in Colorado, they probably didn’t real-ize their creation would last 20 years or impact so many people. The Colorado Association of REALTORS® Housing Op-portunity Foundation (CARHOF) draws upon a source of funds that had long been available but never used.

Working with the Colorado Real Estate Commission, the REALTOR® volunteers gained support that would allow Colora-do brokers to earn interest on real estate trust accounts if the money is used for affordable housing projects in a manner approved by the Commission. CARHOF was set up to provide a vehicle for fund-

ing of community-based affordable hous-ing projects from trust account interest. Since its inception, $6.8 million has been distributed to more than 100 housing organizations in the state, touching the lives of thousands.

To celebrate CARHOF’s success, the foundation will be hosting a luncheon on August 10th at the Infinity Park Event Center to honor its participants, banking partners, volunteers and grant recipients. To show continued REALTOR® support for the foundation, CARHOF is also asking members to donate just $20 for this spe-cial event. To donate, visit www.carhof.org or contact your local association of REALTORS®. Together, we are making a difference in Colorado!

CARHOF Celebrates 20th Anniversary in 2010

6455 S. Yosemite St., Suite 500, Greenwood Village, CO 80111 • 303.850.9576 • www.metrolist.com

Announcing

Flat Fee Pricingcoming March 1st

www.metrolist.com/flatfee

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COMMERCIAL FORECAST

In Denver, vacancy rates will likely remain flat as leasing activity is expected to be lateral with landlords offering attractive leasing rates and concessions to attract new tenants. Lower rates are expected to increase activity among tenants previously unwilling or unable to commit to leases. All-cash buyers will be able to capitalize on distressed assets and lower-priced properties.

Denver Investment Market to Remain Flat in 2010The investment sales volume in Denver is projected to remain flat in 2010, contrasting the national market, which is predicted to increase 20 to 30 percent over the year. As in most markets, all-cash buyers make up the pool of investors seeking assets, which will make larger assets harder until financ-ing becomes available. Since the number of office and industrial properties that fit these characteristics is scarce, the majority of properties traded in 2010 will be non-tradi-tional and come in the form of note sales or other non-recorded transactions.

Lateral Movements Will Increase Office Leasing Activity in Denver in 2010Office leasing activity in Denver is expected to increase in 2010, with most of the activ-ity being lateral movements. Many larger tenants will look to capitalize on the lower rental rates and concessions offered by landlords of Class A and B properties. These long-term, low lease rates are among the challenges Class C properties will face as they struggle to retain tenants.

Recovery in Sight for Industrial MarketIndustrial companies are expected to see positive growth and activity in 2010. Renewable energy companies will likely be responsible for much of the leasing activity expected in 2010, targeting heavy manufac-turing properties and land for build-to-suits. Mid-sized spaces and older properties will continue to struggle with vacancy, given the numerous options in the marketplace. Tenants will take advantage of the attrac-tive rates and higher visibility offered at newer properties. Approximately 204,000 square feet of negative net absorption is anticipated to occur during the year.

Prediction Denver Will Begin Slow Recovery in 2010; City Ranks High in Long-Term Office InvestmentThe Denver 2010 Commercial Forecast is expected to begin a slow recovery in 2010, ahead of the recovery of the national commercial real estate market, which is not anticipated to begin until 2011.

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Leading market indicators for the industrial sector turned earlier than those for the retail and office markets, which is promising. The industrial sector is less dependent on job growth than the office, retail and multi housing sectors, which means it could recover earlier, with vacancy rates beginning a gradual recovery in late 2010 and rental rates following in the second half of 2011.

Retail Leasing to See Moderate Increase in Activity Experts expect Denver’s grocery-anchored centers, as well as urban and infill sites, to remain fairly stable. Retail leas-ing is expected to see a moderate increase in overall activity in 2010. Most of this activity is expected to come from non-traditional retail tenants, including education and profes-sional service firms looking to capitalize on lower asking rates, which are expected to continue declining in 2010.

Multi Housing to Benefit from Boomers’ BabiesSimilar to the other sectors of commercial real estate, job growth is key for a robust recovery in the multi housing arena. The apartment market suffered in 2009 as the grow-ing wave of residential foreclosures increased the supply of shadow units – unsold condominiums and houses being offered for rent. Longer term, apartments will benefit from the return of homeownership rates to pre-bubble levels or

less, as well as increased vol-ume of 20- to 29-year-old apartment seekers as the boomers’ kids move out on their own. The complete Grubb & Ellis Forecast and regional forecasts are available on the Grubb & Ellis Company Web site: www.grubb-ellis.com. Grubb & Ellis Company (NYSE: GBE), is a leading real estate services and invest-ment firm.

}Snapshot of

Colorado Foreclosures

Source: DOLA

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PROFESSIONAL STANDARDS

What is an Ombudsman?

Ombudsman…..is the first question you ask yourself – what is it or how do you pro-nounce it? The correct pronunciation is just like it looks: om buds man or plural, om-budsmen. You should get to know this word, because using one can help you anticipate, identify, and resolve misunderstandings and disagreements before they turn into pos-sible charges of unethical conduct.

What does an ombudsman have to do with the REALTOR® organization you ask? Boards and associations of REALTORS® are charged with the responsibility of receiving and resolving ethics complaints through local, regional and state grievance committees and professional standards committees.

Many “complaints” received by boards and associations do not expressly allege violations of specific Articles of the Code of Ethics, and many do not detail conduct related to the Code. Some “complaints” are actually transactional, technical, or procedural questions that can easily be answered.

The ombudsman’s role is primarily one of communication and conciliation, not adjudication; they do not determine whether ethics violations have occurred.

Associations have considerable latitude in determining how and when ombudsmen will be utilized. For example, ombudsmen can field and respond to a wide variety of inquires and complaints, including general questions about real estate practice, transaction details, ethical practice (except complaints alleging violations of the public trust (as defined in Article IV, Section 2 of the NAR Bylaws), and enforcement issues. They can also receive and respond to questions and complaints about members; can contact members to inform them that a client or customer has raised a question or issue; and can contact members to obtain information necessary to provide an informed response.

In cases where an ombudsman believes that a failure of communication is the basis for a question or complaint, the ombudsman can arrange a

meeting of the parties to facilitate a mutually acceptable resolution.

In the event that a potential violation of the public trust may have occurred, the ombudsman process shall be immediately terminated, and the parties shall be advised of this right to pursue a formal ethics complaint; to pursue a complaint with any appropriate governmental or regulatory body; to pursue litigation; or to pursue any other available remedy.

It is the belief of the National Association’s Professional Standards Committee that many ethics complaints might be averted with enhanced communications and initial problem-solving capacity at the local level. With that in mind, CAR’s Professional Standards Committee is beginning the process of formalizing an Ombudsman Program. A workgroup formed by Gary Glenn, Division Vice President is in the process of establishing the criteria for ombudsmen and outlining the guidelines for the program. If you have had mediation, negotiation, ombudsman or a similar training and are interested in learning more

about CAR’s program as it develops, please drop an email indicating your interest to [email protected]

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Limited Affordable Health Insurance

Benefits and Highlights of RCHI*:• It’s guaranteed-acceptance** – No

medical questions/exams required.• It’s low cost – Plans start as low as

$70.69 per month.• Three plan types are available (Physi-

cian, NAR Value and NAR Platinum)• You have freedom to choose any

provider, with the option of a PPO network, for added savings, in certain states.

• The plans provide assignable benefits – the medical provider bills the insur-ance company directly.

• Next day coverage is available.• No contract needed. Plans have a 10-

day money back guarantee.• Benefits include: doctor office visits,

wellness visits, emergency room ben-efits, surgery benefits, a prescription discount card and more!

• Underwritten by United States Fire Insurance Company, rated A (“Excel-lent”) by A.M. Best

* Subject to limitations and exclusions.** Based on eligibility (age, member of NAR, and state availability)

NAR Members who will benefit from RCHI include those who:

• Cannot afford – or are struggling to af-ford – major medical (comprehensive) health insurance.

• Have tried to get health insurance and have been turned down.

• Have a pre-existing condition that makes traditional insurance coverage expensive or difficult to obtain, but that is covered by RCHI.

• Have major medical insurance with very high deductibles, and who could use an extra layer of coverage to assist with everyday healthcare costs.

Go to www.realtor.org for details.

REALTORS® Core Health Insurance (RCHI) provides guaranteed-issue, afford-able Limited Medical plans which are exclusively designed and priced specifi-cally for NAR members aged 18-65. Simply put, RCHI provides coverage for your everyday healthcare needs – helping to provide a safety net for people who do not have the luxury of being covered by a comprehensive health insur-ance plan.

Upcoming ClassesAll courses are $299 or $275/ Chapter Members.

Mar. 24th - 25th - CRS 206 - TechnologyGlenwood Springs Association or REALTORS®May 4th - 5th – CRS 201– Listing Denver Board of REALTORS®Sept. 30th - Oct. 1st – CRS 210 – Referral Grand Junction Area REALTOR® Association

Upcoming Networking For Referrals:Mar. 24th – Glenwood Springs, May 4th – Denver,Sept. 30th – Grand Junction

Why Become a CRS?• CRS Designees earn a median income of $85,000

annually, nearly 3 times the $29,400 median income of REALTORS® serving as sales associates.

(Source: 2009 NAR Member Pro� le)

• CRS Designees average a total of 21 transactions per year with gross sales of $3.2 million.

COLORADO CRS CHAPTER #1

Course descriptions & registration at www.ColoradoCRS.com or call 303-582-5617.

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CAR Convention to Move in 2011CAR is bidding farewell to hosting its REALTOR® World- CAR Annual State Convention at the Broadmoor Hotel in Colorado Springs after this year. Begin-ning in 2011 CAR will host their Annual Convention in downtown Denver at the Sheraton Hotel. “After considerable research, CAR’s leadership made a very tough decision in order to deliver the best value and convention experience possible to our membership. We believe that a new strategy including moving the location will do exactly that,” said George Harvey, president of CAR.“This has been an incredible historical run for 90 years for our State Association and the Broadmoor. We are very excited to start a new CAR tradition and special new opportunities that the Denver loca-tion will provide for our members,” said Harvey.

Treasury Department Guidelines for Home Affordable Foreclosure Alternatives ProgramOn November 30, 2009, the Treasury De-partment released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA), part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in con-nection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclo-sure on a loan eligible for modification under the HAMP program. HAFA applies only to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks. Does not kick in until 4/5/2010. For details go to www.realtor.org/government_affairs/short_sales_hafa

.

Education Foundation donates $4,000 for Real Estate Scholarships at CU & DUThe Education Foundation donated $2,000 to the Hochmuth Memorial Schol-arship Fund at the University of Colorado and $2,000 to the Franklin L. Burns School of Real Estate and Construction Manage-ment scholarship fund at the Denver University. Especially during this eco-nomic climate, financial assistance can be the difference for a student being able to complete each academic year, and these donations will go to support deserving students at each school.

Join Team Colorado REALTORS® for the 25th Anniversary Great-West Life Bike MS, Colorado’s Ride 2010

Team Colorado REALTORS® is putting together another team for the 25th Anniversary MS Bike ride. The two-day inspirational ride will be held June 26 – 27, 2010, with a goal of raising over $3 million to enhance the lives of people liv-ing with MS as well as fund vital research to help create a world free of MS. Of the funds raised through this event, 83 cents of each dollar is spent on research and local programs.More than 3,000 cyclists, 600 volunteers, and countless supporters will enjoy majestic Colorado scenery while riding from Front Range Community College in Westminster to Colorado State University in Fort Collins and back. Team Colorado REALTORS® is hoping goal is to get 200 riders. New this year they will have a 25 mile ride that will begin and end in Fort Collins in the same location as the rest of the riders. To learn more on the “Events” tab at www.ColoradoRealtors.com.

NEWS EVENTS&

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New Lead Based Paint Rules The Toxic Substances Control Act resulted in the EPA creating a new rule dealing with lead-based paint (LBP) hazards created by repair, painting and renova-tion activities that disturb lead-based paint in affected housing constructed prior to 1978. It also applies to a public/commercial facility of similar date where children are present on a regular basis (e.g., school or daycare facility). The rule, passed in 2008, becomes effective April, 2010. This is in addition to the existing rule that requires disclosure by the seller of LBP hazards and records in the sale of pre-1978 homes.The rule affects general and specialty contractors by requiring them to be certified if they are performing work on a target property, and requiring them to provide warnings to let people know of the potential hazards.

Exemptions to the Rule include: 1. Repair/maintenance work where the

disturbed area is no larger than 6 sq. ft. of interior painted surface, or 20 sq. ft. of exterior surface;

2. A certification that the work area is free of lead-based paint (as deter-mined using an EPA recognized test kit, and the kits they sell at Home Depot & Lowes do not qualify)

3. Renovations by an owner to their own residence. This assumes that the owner is doing the work, not having it done by a property manager or contractor “friend”

4. Some housing may be exempt if it is shown that no child under the age of 6 or pregnant woman resides or regularly visits there. Check with your attorney to see if you are exempt.

You can view the rule at: www.epa.gov/fedrgstr/EPA-TOX/2008/April/Day-22/t8141.pdf and you can also find informa-tion and sample checklists at www.epa.gov/lead/pubs/leadinfo.htm#remodeling.

Evictions from page 8

set to expire sooner than 90 days, a ten-ant complying with the terms of a lease must receive a minimum 90 day notice to quit before an eviction action can be filed in court.Of perhaps greater significance to the foreclosure investor is that if the above minimum 90 day notice criteria do not apply, the Act provides that the recipi-ent of the PT Deed takes the property subject to the lease and the tenant gets to occupy the property for the remainder of the outstanding lease term. There is no language in the Act limiting this duration of time. So, if a tenant has a four year lease on a property and one year has passed as of the date of the foreclosure sale, unless one of the 90 day exceptions apply, the Act seems to provide that the tenant can remain in the property for the remaining three years of the lease.While not explicit, the Act will likely be interpreted to permit eviction if a tenant fails to comply with the terms of the exist-ing lease post-foreclosure. So, if a tenant fails to pay rent or fails to comply with any other covenant in a written lease, the recipient of the PT Deed can likely initiate the eviction process under Colorado law sooner than the time frames set out in the Act. The Act is also likely to be inter-preted to permit any tenant to waive its rights and vacate the property after the foreclosure sale without any further obli-gations to the recipient of the PT Deed.For foreclosure investors looking to take possession of a residential property oc-cupied by a bona fide tenant in less than 90 days, “Cash for Keys” is an option to consider.The Act expires on December 31, 2012 unless Congress takes action to extend its effective date.

Disclaimer–Content is general information only. Information is not provided as advice for a specific matter, nor does its publica-tion create an attorney-client relationship. Laws vary from one state to another. For legal advice on a specific matter, consult an attorney.