There has been a lot of confusion pertaining to the licensure of community association managers who are employed directly by a common interest community in Colorado. There have also been questions about whether these common interest communities must be licensed. After obtaining clarification from the Division of Real Estate and reviewing the Emergency Rules which were just published, here’s what you need to know:
1. Common interest communities will not be required to be licensed as an "entity." In other words, common interest communities will not be required to be licensed as a community association management company with the Division of Real Estate.
2. Common interest communities will not be required to name a "Designated Manager."
3. Common interest communities will not be required to purchase errors and omissions insurance ("E&O") to cover the managers which they employ.
4. The community association managers who are employed by a common interest community will not be required to purchase their own E&O coverage.
It is important to note that this posting only refers to managers who are hired as an employee of a common interest community. This blog posting does not apply to community association managers who provide management services to common interest communities as an independent contractor or as the employee of a management company.