Important Update on Proposed Commission Rules 6.17 and 6.27

On Tuesday, December 2, the Colorado Real Estate Commission (“Commission”) held a critical rulemaking hearing on several proposed new rules—6.17.D and 6.27 among them —that would have significantly reshaped long-standing interpretations of designated brokerage and broker supervision.

Thanks to thoughtful, informed, professional, and respectful advocacy from the Colorado Association of REALTORS® (CAR) and input from Colorado REALTORS® across the state, the Commission ultimately rejected both proposals.

This outcome reflects a simple truth: when REALTORS® show up, engage constructively, and speak from real-world experience, policymakers listen. Dozens of REALTORS® testified over the course of several Commission meetings, representing diverse markets, business models, and perspectives—and our presence truly mattered.

This proposal would have required brokers to disclose a conflict of interestanytime both sides of a transaction were supervised by the same employing/supervising broker—reversing decades of Commission interpretation.

CAR opposed the rule because it:
• Conflicted with established designated brokerage law,
• Blurred the line between actual and potential conflicts, and
• Risked confusing consumers who benefit from appropriate supervision of brokers.

The Commission agreed and declined to adopt the proposal.

CAR and nearly every stakeholder expressed concern that the proposed “written informed consent” requirement was unclear, unworkable, and out of step with both consumer expectations and statutory intent.

REALTORS®, attorneys, former commissioners, broker associates and brokerage leaders all testified, highlighting:
• Ambiguity around what “informed consent” means,
• Lack of a Commission-approved form,
• Consumer desire for clear, constructive supervision to avoid potential consumer harm, and
• Potential operational challenges for both supervising and associate brokers.

After thoughtful discussion and executive session, the Commission rejected proposed Rule 6.27 as well.

In public comments since the Commission meeting on December 2, the Division has indicated that they intend to enforce the requirement that a Designated Broker obtain “informed consent” from a consumer BEFORE sharing that consumer’s confidential information with any third parties (including Employing/Supervising Brokers) as if the rules had passed. This puts the comments from the Commissioners in the hearing in direct conflict with the statements of the Division.

Further, the Commission-approved listing contracts still have paragraph #5.3, removed effective January 1, 2026, and the Division has specifically indicated that simply “re-inserting” the old Paragraph 5.3 language is insufficient to obtain informed consent from their perspective.

Therefore, beginning on January 1, 2026, if you intend to share a consumer’s “confidential information” with any third parties (including supervisors, transaction coordinators or compliance administrators), you will want to have a very clear (preferably written) authorization from your client before doing so. For a good, concise summary of what may be considered “confidential information” in a Colorado real estate transaction, please refer to Paragraph 5.2 of the Listing Contracts (specifically subparagraphs 5.2.1 – 5.2.4).

Based on Colorado license law and its strict limitations related to contract use and preparation, CAR is not legally allowed to draft forms or clauses for use by members. Conversely, the Colorado Bar Association (“Bar”) would be authorized to prepare and distribute an appropriate form. CAR is actively in discussions with the Real Estate Section of the Bar to consider appropriate solutions for licensees on this matter. If the Bar chooses to weigh in on this matter, we will communicate that solution to REALTORS® immediately.

If you have additional questions, please consult with your brokerage firm’s leadership and/or legal counsel to ensure that any informed consent received from the consumer is adequate to authorize the sharing of the consumer’s “confidential information.”

The Commission’s decision reflects careful deliberation and respect for industry input. It is also a clear reminder of the power of our collective, constructive REALTOR® advocacy. REALTORS® rearranged their schedules to testify with thoughtful, respectful, and substantive content to help achieve these decisions. The boots-on-the-ground voices of REALTOR® professionals, combined with detailed analysis from CAR’s legal and government affairs teams, made a meaningful impact.

Whether you testified, submitted comments, or simply stayed engaged, your membership made this advocacy possible.

Thank you,

Colorado Association of REALTORS®