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DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
REAL ESTATE BROKERS
4CCR 725-1

E-43 Square Footage Disclosure Revisions

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4. 	E-43 Square Footage Disclosure Revisions
Section 5.	Enforcement
Section 6.	Effective Date

Section 1.	Authority

The statutory basis for the adoption of this rule regarding real estate brokers is Part 1 of Title 12, Article 61 C.R.S.  The specific rulemaking provisions contained therein are sections 12-61-114(4) and 12-61-114.5, C.R.S.

Section 2.	Scope and Purpose

Commission Rule E-43 Square Footage Measurement speaks to the requirements of disclosing the methodology or manner in which a properties square footage was been measure and the requirement for identifying the source of measurement if the property was not measure by the licensee.

The purpose for revising the rule is to clearly identify when square footage disclosure is required, what information is required and who is making the disclosure to whom.  Listing Brokers will be required to accurately disclose the square footage of living floor area, the source it was obtained from and the date it was obtained whenever the Broker disseminates such information.  

Section 3.	Applicability

This rule applies to real estate brokers licensed by the Colorado Real Estate Commission.

Section 4.	E-43 Square Footage Disclosure Revisions

E-43. Square Footage Disclosure Revisions

This rule applies to transactions involving the sale and purchase of residences, new or existing.  It requires the listing licensee to disclose the square footage of the floor space of the living area of the residence to the buyer and seller when a licensee disseminates such information, including submission to a multiple listing  service.  If the licensee personally measures or provides information from another source of measurement of the residence’s square footage the licensee shall use the Commission approved form for such disclosure. The licensee listing the property is responsible for accurately representing any source of square footage. 

(a) Licensee measurement. A licensee is not required to measure the square footage of a property. If the licensee takes an actual measurement it does not have to be exact, however, the licensee’s objective must be to measure accurately and calculate competently in a manner that is not misleading, and: 

i. The standard, methodology or manner in which the measurement was taken must be accurately disclosed to the buyer and seller; 

ii. The buyer and seller must be advised that the measurement is for purposes of marketing and is not a measurement for loan, valuation or any other purpose; and 

iii. The buyer and seller must be advised that if exact square footage is a concern, the property should be independently measured. 

(b) Other sources of square footage. If a buyer or seller is provided information from another source for square footage, that source (whether an actual measurement, building plans, prior appraisals, assessors office, etc.) shall include the date of issuance if any and must be disclosed to the buyer and seller in writing by the licensee, in a timely manner. Such disclosure must be on the Commission approved form and must advise the recipient to verify the information. A licensee may not provide information to a person from a source known to be unreliable and is responsible for indicating obvious mismeasurement by others. 

(c) A licensee working with a buyer must advise that if exact square footage is a concern, the property should be independently measured.  This requirement is fulfilled by the licensee supplying such buyer a copy of the Commission approved form for disclosing square footage. 

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Section 5.	Enforcement

1.	Noncompliance with this rule, whether defined or reasonably implied in the rule, may result in the imposition of any of the sanctions allowable under Colorado law.

Section 6.	Effective Date

This rule shall be effective April 30, 2009.