Industry News

Colorado bill would regulate real estate partnerships

Bill comes in wake of last year's probes

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A bill prohibiting real estate professionals from requiring the use of affiliated business arrangements as a condition of obtaining settlement services is under consideration by Colorado's legislature. Colorado House Bill 1141, sponsored by Rep. Dale Hall and Sen. Dan Grossman, prohibits title insurance companies, title insurance agents, settlement producers, and real estate brokers from requiring the use of an affiliated business arrangement or any particular settlement producer or provider as a condition of obtaining a settlement service. The title insurance industry came under an intense spotlight in 2005. Insurance regulators in Colorado in February launched an investigation of nine Colorado title insurers for alleged kickback schemes said to result in overcharges to consumers. The probe sparked dozens of similar investigations nationwide, including probes in Florida, Washington, Hawaii, California, Oklahoma, Minnesota and Washington. The alleged kickback schemes involved sham aff...