With all this talk about who needs to get licensed, what you need to do to get licensed, the deadline for getting licensed which, by the way, is July 1st, let’s not forget about the law that is already in place …HB14-1254, otherwise known as the Manager Disclosure Bill. The following sums up the disclosure requirements, which came into effect on January 1, 2015:
WHAT do you have to disclose? All fees and other amounts that the manager charges or will charge to:

•    the community,
•    unit owners, and
•    purchasers of units in the community

for or as a result of any service, product, transaction, or item of value provided by:

•    the manager,
•    any employee or contractor of the manager, or
•    any other individual or entity with whom the manager associates in the performance of community association management services.

All remuneration the manager or any subsidiary, affiliate, or related person or entity receives or will receive, directly or indirectly, in connection with its relationship with the common interest community.

WHO has to disclose the information, and TO WHOM?  The manager, and every agent/other person who represents or negotiates on behalf of a manager, must disclose the above information to the board of every association for which it provides services or offers to provide services.

HOW and WHEN do you disclose the information?

•    The information must be explicitly disclosed in the management agreement or an addendum, or be documented by a clearly identified line item on a real estate closing settlement statement.
•    The disclosure must occur during contract negotiations and thereafter on an annual basis.

WHAT HAPPENS if you don’t disclose?

1.    You won’t be able to enforce any fee, including a transfer fee, against the association or any buyer or seller of property served by the association.

2.    The director of real estate may regulate, investigate and take disciplinary action against any manager or principal thereof for a violation. This investigation could occur upon the director’s own motion or upon the complaint in writing of any person.

3.    After holding a hearing under the “State Administrative Procedure Act“, the director may take the following actions:

•    impose an administrative fine not to exceed $2500 for each separate offense,
•    censure a licensee,
•    place the licensee on probation and set the terms of probation, or
•    temporarily suspend or permanently revoke a license.

For more information on the requirements of this bill, please contact any of the attorneys at (303) 432-9999.

Melissa M. Garcia, Esq.
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