By Amanda S.P. Howe & Jonathan A. Goodman

Some service businesses try to operate as simply as they can and outsource all services but their core competencies. Other businesses seek to provide one stop shopping for customers. One stop shopping can enhance the quality of the services to the customer and help the business amortize its marketing resources over more revenue sources. Yet real estate companies that set up sister mortgage, title and other companies providing "settlement services" (as that term is defined by RESPA) do so in a highly regulated environment.

Question #1:   I am a licensed real estate broker and own a real estate company. My company spends time and money to capture consumers who wish to buy and sell real estate. Mortgage companies were profiting from these efforts because I would refer buyers to the mortgage companies for financing. To retain some of the profit that went to the mortgage companies, my business partner and I decided to create a mortgage brokerage company. My business partner owns a separate mortgage brokerage firm. May our new company outsource work to my business partner's separately owned mortgage company without violating RESPA?

Continue

By Gregg A. Greenstein

The concept of children marrying adults is a reality in Colorado. In a recent decision by the Colorado Court of Appeals, the Court determined that a young girl's marriage to an older man was legally valid despite her age.

The statutory age of consent for marriage in Colorado is eighteen. Nevertheless, persons between sixteen and eighteen years of age may marry if they obtain parental consent, or, if that is not possible, judicial approval. A person under the age of sixteen may receive judicial approval to marry if that person "has the consent to his or her marriage of both parents, if capable of giving consent, or his or her guardian or, if the parents are not living together, the parent who has legal custody or decision-making responsibility concerning such matters or with whom the child is living."

However, Colorado is also one of several states, along with the District of Columbia, that still recognizes common law marriages. The jurisdictions that recognize common law marriage are Alabama, Colorado, District of Columbia, Idaho, Iowa, Kansas, Montana, Rhode Island, South Carolina, Texas, and Utah. Common law, not the Colorado statutes, governs the existence of a common law marriage.

Essentially, in a common law marriage, two persons create a valid marital relationship without the benefit of a legal marriage ceremony performed according to statutory requirements. Oddly enough, Colorado law requires that the common law of England (so far as that law is applicable and of a general nature) shall be considered as of full force until repealed by the legislature.

Continue

This publication is intended to provide accurate and authoritative information on the subject matter covered. It is distributed with the understanding that the publisher and distributor are not rendering legal, accounting or other professional service, and assume no liability in connection with its use. Copyright © 2006.

This is an advertisement.

• Affiliated Business Arrangements & Outsourcing
• Children Marrying Adults
• The Importance of a Properly Executed Will, and What it Does and Doesn't Control
• Property Management Agreement Addendum Brokerage Duties Addendum to Property Management Agreement

By Miriam Abrams Goodman

In Colorado, signing a will with the proper formalities can make a big difference in the administration and distribution of your estate. Colorado has a progressive, consumer-oriented probate system. Commentators in the national media constantly warn the public to "avoid probate," but in most cases these warnings do not apply to Colorado residents who do not own real property outside of Colorado.

If you think you'll be satisfied with the will that the Colorado legislature has written for you if you die without a will ("intestate"), then this article doesn't apply to you. If you prefer to provide your own directions for distribution of your property at your death, then you should continue reading.

While Colorado probate can be relatively easy and painless, it is more likely to be so if your appointed personal representative can produce an original, self-proving will. Anything short of this is going to cause extra expense, and may open the door to a will contest.

Continue

By Jonathan A. Goodman & Amanda S.P. Howe

Question: I am a licensed real estate broker. In addition to helping owners lease property, I help my owner clients manage their portfolio. I understand that the Colorado Real Estate Commission has created a form called "Brokerage Duties Addendum to Property Management Agreement." What is this form for and when am I required to use it? When do I use the "Brokerage Duties Disclosure to Seller (REO and Non-CREC Approved Listing Agreements)" form?

Response:  Colorado statutes require brokers to make disclosures to the public addressing the nature of the relationship between the broker and the assisted person. Brokers are experienced at making these disclosures to buyers and tenants as brokers frequently interact with buyers and tenants with whom the broker has no established relationship. For example, a listing agent might field a call from a prospective tenant for office space in a building listed by the broker. The leasing agent might make an appointment to show the space to the prospect. After preliminary conversations or small talk concerning price range and other factual questions from the potential tenant, the broker is supposed to make the brokerage relationship disclosures to the prospect. Brokers are used to making those disclosures using the Colorado Real Estate Commission form called "Broker Disclosure to Buyer," having form number BD24-05-04.

Continue