CAR Bill Designed to Protect Homeowners Heads to Governor’s Desk
Senate Bill 77, otherwise known as Restrictions on Broker Engagement Contracts, has passed and heads to the Governor’s desk for his signature. The bill was brought forth by CAR to protect homeowners, buyers, and sellers from predatory right-to-sell schemes. CAR worked with Senator Nick Hinrichsen (SD-03) and Rep. Meg Froelich (HD-03) on this legislation to prevent harmful business practices.
The Colorado Association of REALTORS® brought forth Senate Bill 77 to protect homeowners, buyers, and sellers from predatory right-to-sell schemes. CAR member Zach Chicoine’s testimony and CAR staff illustrated how the most experienced brokers could be caught in these unfair agreements through no fault of their own.
Companies that use this practice focus on providing quick financial assistance to homeowners with a cash payment between $300 to $5,000. Consumers often sign these agreements unaware of the exclusive multi-year listing right, usually 40 years, that includes a lien on their property filed in favor of the company. The contract is binding across generations, not just the current homeowner. Chicoine highlighted the financial and legal hard pressure tactics unsuspecting homeowners face including the threat of lawsuit and foreclosure, that can only be effectively countered by exhausting all measures.
The issue also garnered the attention of the Colorado Division of Real Estate and the Land Title Association of Colorado. Both organizations testified in support of Senate Bill 77, emphasizing a great need to stop the issue in its tracks.
Homeowners have been and will no longer be at a great disadvantage because Senator Nick Hinrichsen, Rep. Meg Froelich, and CAR worked together to file legislation that will prevent these harmful business practices. CAR’s bill to protect homeowners bridged partisan lines, and all legislators who have reviewed it are voting to pass it.
The bill passed the House with bipartisan support 59-5 after passing the Senate 32-0. It now heads to the Governor’s desk for his signature.