Legal Update 2020
Instructor: John Henderson
Statutory Minimum Services Cannot be Contracted Away and Do Not Violate Antitrust Laws
Colorado Real Estate Commission v. Vizzi, 2019 COA 33, 2019 Colo App. LEXIS 313 (2019)
Court of Appeals of Colorado, Division Five
Facts: A licensed Colorado real estate broker contracted to provide limited, unbundled, flat fee brokerage services such as only listing the property on MLS and providing yard sign, lock boxes and centralized showing services. The Commission charged the broker with failing to fulfill his statutorily required duties as a non-agent "transaction broker". An Administrative Law Judge concluded that the statutory duties are mandatory and disciplined the broker with a public censure.
Issue: (1) Can statutory real estate agency/brokerage relationship minimum services requirements be eliminated by contract? (2) Does the commission's minimum services policy violate antitrust laws?
Held: (1) No and (2) No. The statutory services "in addition to" and "different from" the required duties do not permit a transaction broker to contract to provide less than the enumerated minimum services contained in the act. The act also "clearly articulated state policy" defining acts that require licensing and did not violate antitrust.