Government Affairs Corner
2008 Colorado General Assembly considers REALTOR® issues
By Nick Bokone
Government Affairs Director for the Greater
Metro Denver REALTOR® Associations
In the never-ending world of government affairs and political involvement, REALTORS® were involved in defeating a proposed measure last month that posed a serious threat to our industry.
Ballot Initiative 109, filed in late April by the Colorado Trial Lawyers Association as a retaliatory move to limit attorney fees by business groups, would have placed a six percent cap on commissions for homes priced at $250,000 or less. Sales between $250,000 and $500,000 would have been capped at three percent, and sales above $500,000 would have been capped at a one percent commission.
The Colorado Association of REALTORS® (CAR) opposed this ballot measure for a number of different reasons. First, CAR believes the ballot initiative process is an unproductive way to deal with consumer and business issues. Second, this proposal was a very bad idea for consumers. It would have changed the relationship between the consumer and the real estate agent/REALTOR® by mandating fixed prices. Currently, commission rates are negotiable regardless of the selling price of a property.
The sliding scale proposed in the initiative was patently unfair, particularly to the majority of buyers who are purchasing homes on the lower dollar value of this scale.
Our current system encourages innovative business models that clearly benefit the consumer. As an association, our desire is to encourage and support our varied professionals in being creative for the consumer and providing diverse solutions to their real estate needs.
After a number of weeks of getting the REALTOR® message out to our elected officials and the public, the measure was ultimately pulled by its sponsors and it will not appear on the November ballot.
“CAR’s immediate attention and opposition to this initiative proved to be most effective” said CAR President Greg Zadel. “Our efforts proved that the Trial Lawyers’ initiative was ill-advised and would not be in the best interest of the consumer or the real estate profession.”
Though this proposal was quickly defeated, it remains a sobering reminder that REALTORS® face serious threats every day at all levels of government. Without diligent attention to detail at city hall, the state capitol in Denver, and within the halls of Congress, issues such as this could threaten our way of life and our ability to help people realize the American dream of home ownership. Contact your local association today to see what you can do to help protect your industry.
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