While this new form facilitates commercial redemption transactions, the form is seller-oriented and may not be useful in all situations. If the use of this form is not desirable, licensees should consult with their lawyers in order to obtain an agreement that meets the specific needs of a given situation. One of the problems with the old ERL form was that it had no provision for the lease related to the business. In sales situations, brokers use either the Deal Agency Addendum or the Transaction Broker Addendum. These issues have been addressed. The new agency forms provide that when a written double agency or transaction broker supplement is signed by the client, the broker can act in the business. On the other hand, the transactional brokerage etc form provides that the « [b]roker may not participate in a transaction in which the broker is an agent of the lessor or acts as a transaction agent when the broker has a right of ownership in the premises. » The ERL transaction brokerage form remains silent on transactions related to the company. The new forms are simple, easy to use and address the regulatory issues associated with the predecessor ERL. The Commission amended this form of separate agreement between sellers and licensees into an addendum to be annexed to the main purchase and sale contracts. Commercial licensees must comply with the new form: although it fulfills its purpose and facilitates these transactions, the form is seller-oriented and protects sellers. Because of the safe harbor created by Rule E-40, brokers should insert the exclusion of liability into any written document in which the broker issues a valuable valuation, including an assessment of an inheritance right.
The real estate commission has also adopted a large number of rule changes and new rules. Perhaps the most important complement for commercial property owners and their real estate agents is the new E-40 rule, which clarifies how real estate agents can do market analysis. It is customary for real estate owners, owners of estate shares or tenants to ask a broker to assess the value of the property. Rule E-40 provides that the Colorado Estate Commission has revised the Exclusive Right to Lease Listing Agreement (ERL). There are four new forms of commitment for leasing. New rule (E-40) regulates the development of market analyses by brokers. The Commission also amended the buy-back agreement for licensees and used a supplement that can be attached to the standard buy-sell forms. The new forms of ERL avoid the pitfalls of the old LER. The former ERL lacked the fact that, unlike the distribution-oriented forms, no provision had been made to deal with the relationship between the broker and the client. Distribution-oriented forms explicitly define the broker`s role either as an agent or as a transaction agent.
They also contain the legal legend that informs the seller of the diversity of brokerage relationships available….