Real Estate Broker Advisory: Transaction File Checklist Update
To better assist Colorado licensed real estate brokers and consumers, the Division of Real Estate recently updated the Transaction File Checklist. This important document is posted on the Division’s website and can be located at the hyperlink below this article. As noted on the Transaction File Checklist, and as discussed in the Colorado Real Estate Manual, records of licensed brokerage activity must be retained for four (4) years beginning from the consummation date of the transaction or the expiration date of any listing contracts that do not consummate, in accordance with §12-10-217(1)(k), C.R.S. (Failing to Maintain Records), and Commission Rule 6.20 (Transaction File Requirements). Additionally, Commission Rule 5.21 (Production of Documents and Records) requires any licensee to produce for inspection by the Commission any document or record as may be reasonably necessary for investigation or audit in the enforcement of the Commission statutes and rules.
The Transaction File Checklist is a non-exhaustive list of common records to retain in a broker’s transaction file, including property management files. Not all of the documents listed in the Transaction File Checklist may be applicable to a particular transaction, but if a document was used during the transaction, it must be maintained in the transaction file. Also, there may be additional documents not included on this list that are appropriate for use in a particular transaction; such documents must be maintained if used.
Changes to the Transaction File Checklist
In the most recent revision, the following changes were made to the Transaction File Checklist:
- The Transaction File Checklist is now a fillable .pdf
- Several Sales Files checklist items were added:
- Definitions of Working Relationships
- Inspection Report
- Residential Addendum to Contract to Buy and Sell Real Estate
- Title-Related Objection Notice
- Appraised Value Objection Notice
- Appraised Value Objection Notice Withdrawal
- Personal Property Agreement
- Extension or Termination of Contract
- Other Sales Files checklist items were removed:
- Seller Warning (applicable to foreclosures)
- Seller Authorization (related to short sales – if applicable)
- For Property Management checklist items, the following were added:
- Tenant Applications for Executed Lease or Rental Occupancy Agreements
- Radon Disclosures
