Being a Mentor, Day 10

My mentee got her official license as of 2 days ago! Yay! That means she is listed on the Colorado Division of Real Estate. All Colorado real estate licensees can be found by searching here: http://eservices.psiexams.com/crec/search.jsp 

She is getting her photo taken for her business cards, website, Bray’s list of agents, etc., This photo will be seen in a lot of places, so it’s good to have a photo she likes. My mentee also shadowed me on a listing appointment. The sellers are out of town so I went to the property and took measurements and photos. My mentee helped me with that and then spent the afternoon gathering more information from the tax assessor’s site and neighborhood. We got some information from Navica.

In the past couple days, she has had lunch or coffee with several title companies. Depending on who the seller or buyer chooses for their title work, it is easier if she has already met them before the closing day. She missed some stuff because she had a family appointment. I know that everyone juggles all the facets of their life & sometimes family comes first. For me it is usually family and clients first and I always have difficulty when I feel that I am not giving either side enough time. So I have been talking with my mentee about having balance among all the tasks. She is working on a pretend listing of her own house. That gives her an opportunity to fill out all the forms. I remember, though, that I still was very careful when doing my first listing!

Colorado Green Disclosures, item 8

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The eighth item is "ENERGY STAR Appliances." The form's options are Refrigerator, Range/Oven, Dishwasher, and Clothes Washer.

An ENERGY STAR refrigerator uses 15% less power than a non-certified model and 20% less than the federal minimum standard. Read more tips and find out how to recycle your old refrigerator on the ENERGY STAR page at http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=RF

ENERGY STAR certification is not currently available for ranges and ovens; you can read more about ENERGY STAR for other products, and find ranges and ovens when certification is available, at http://www.energystar.gov/index.cfm?fuseaction=find_a_product

An ENERGY STAR dishwasher is 10% more energy efficient and 20% more water efficient than a conventional model. New dishwashers also offer features like "soil sensors" which detect how dirty dishes are and adjust the wash accordingly. Read more at the ENERGY STAR page at http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=DW

An ENERGY STAR clothes washer uses 20% less energy and 35% less water than a conventional model. Most new washers also have greater tub capacities, allowing for fewer loads. Read more at the ENERGY STAR page at http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=CW

Colorado Green Disclosures, Item 7

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The seventh item is "Energy Features." The form's options are: ENERGY STAR/Low E Windows, Orientation/Passive Solar Design, ENERGY STAR Rated Roof, Automated Lighting Controls, High Efficiency Lighting, and Programmable Thermostat.

"ENERGY STAR/low E windows" are designed to maintain your home's temperature by keeping heat in during the winter and out during the summer. Different rating levels are used for different climates. Special coatings on low E glass reflect infrared and ultraviolet light, which means they not only help maintain temperatures but also protect your home's furnishings from sun damage. Read more at http://www.energystar.gov/index.cfm?c=windows_doors.pr_anat_window

"Orientation/passive solar design" refers to using a home's site, climate, materials, and positioning relative to the sun to minimize energy use. A passive solar home collects heat energy from the sun in winter and uses shades to block sun in the summer. Read more at http://energy.gov/energysaver/articles/passive-solar-home-design

An "ENERGY STAR rated roof" is a roof that reflects more sun, lowering roof surface temperature and reducing peak cooling costs by 10-15%. Read more at http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=RO

"Automated lighting controls" can range from a motion-sensitive activation for outdoor lights to a range of whole-house programmable controls to meet a variety of needs.

"High efficiency lighting" uses compact fluorescent lights (CFLs) and light-emitting diodes (LEDs) produce the same amount of light as older technologies while using less energy and lasting longer. Read more about CFLs here: http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=LB
And more about LEDs here: http://www.houzz.com/ideabooks/9600878/list/The-Lowdown-on-High-Efficiency-LED-Lighting

A "programmable thermostat" increases and decreases a home's temperature automatically, allowing for lower heat at night or lower air conditioning during the day while residents are out. They can be found at most hardware stores and have gotten easier to schedule.

Colorado Green Disclosures, Item 6

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The sixth item is "Sustainable Materials." The form's options are: FSC Certified Lumber, Reclaimed Flooring, FSC Certified Cabinets, Sustainable Flooring, Recycled Content, and Regionally Harvested.

The "FSC" in "FSC certified lumber" stands for "Forest Stewardship Council." Two certifications are available, "Forest Management Certification" and "Chain-of-Custody Certification." The "forest management certification" means that wood from a forest has been harvested legally, with respect to indigenous peoples, with ethical treatment of workers, efficiently, sustainably, and with minimal environmental impact.  The "chain-of-custody certification" means that products are tracked from their forest management certified origins throughout the supply chain and distinguished from non-certified products. For more information and to look up Certificate Holders, see the FSC website at http://us.fsc.org/index.htm

"Reclaimed flooring" means flooring made of wood that was previously used in another construction. This is a good way to use woods that were once abundant and commonly used but are now less available. A partial list of reclaimed flooring providers is available at http://www.reclaimedflooring.com/

"FSC certified cabinets" are cabinets made with the Forest Stewardship Council's Chain-of-Custody Certification, from FSC Forest Management Certified wood supplies. Read more at http://us.fsc.org/index.htm

"Sustainable flooring" has been produced from sustainable materials using sustainable processes, which means that both the materials themselves and the methods used for harvesting, production, use and disposal have minimal environmental impact. For standards of sustainability, here is a website where there is information about carpeting and resilient flooring standards: http://www.nsf.org/business/sustainability/index.asp?program=Sustainability

"Recycled content" is the use of previously used material to partially or completely make up a new item. An example is recycling the gypsum previously used in drywall to make new drywall. Read more at the Construction and Demolition Recycling Association's website: http://www.cdrecycling.org/

"Regionally harvested" means that a home was constructed using raw materials, like wood, from within 500 miles of the home's location. Here is more information: http://www.leeduser.com/credit/NC-2009/MRc5

Colorado Green Disclosures, Item 5

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The fifth item is "Indoor Air Quality." The form's options are: Indoor Air Quality Plus by ENERGY STAR, Heat Recovery Ventilator/Fresh Air System, Green Guard Certified Carpet/Flooring, No Formaldehyde Certified Cabinetry, No or Low VOC Paint, and Radon Mitigation System.

"Indoor air quality plus by ENERGY STAR" means a home has been built to ENERGY STAR specifications not only for energy efficiency but also for Indoor airPLUS specifications. airPLUS qualifications involve constructing the home to protect against moisture and mold, pests, combustion gases, and other airborne pollutants. Read more at the EPA website, http://epa.gov/iaplus01/about.html

A "heat recovery ventilator/fresh air system" is a system that provides air circulation to a home (moving fresh air in and stale air out) and uses the heat in the stale air to warm the fresh air. This system can retain and transfer up to 85% of the heat in the outgoing air to the incoming air. Read more at http://www.popularmechanics.com/home/improvement/interior/1275121

"GREENGUARD certified carpet/flooring" is floor covering with materials that have been found to offgas low levels, or no levels, of volatile organic compounds (VOCs). Information about “offgassing is at http://www.natureneutral.com/learnOff.php A list of certified floorings is available at http://www.greenguard.org/en/SearchResults.aspx?CategoryID=1

"No formaldehyde certified cabinetry" means that cabinets made of particleboard, medium-density fiberboard, and plywood have been tested and do not emit significant levels of formaldehyde. Formaldehyde is a component found in wood-binding adhesives and resins. Read more at http://www.greencabinetsource.org/index.cfm

"No or low VOC paint" means paint with levels of "volatile organic compounds" that are below certain concentrations. The levels vary somewhat depending on the type of paint. Because VOCs are a significant source of indoor air pollution, paint that has no or low-VOC can be an important factor in air quality. Read more at http://home.howstuffworks.com/home-improvement/construction/materials/low-voc-paint1.htm

A "radon mitigation system" vents radon, a naturally occurring radioactive gas, from your home or prevents it from entering your home by removing it from the surrounding soil. For more information specific to Colorado, go to http://www.coloradoradon.info And visit this webpage for a link to the brochure "Dealing with Radon in Real Estate Transactions": http://www.colorado.gov/cs/Satellite/CDPHE-HM/CBON/1251617273626

Colorado Green Disclosures, Item 4

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The fourth item is "Water Efficient Features." The form's options are: Low Flow Toilets, Low Water sod, Xeriscaping, WaterSense by ENERGY STAR, Low Flow Fixtures/Shower Heads, Hot Water Recirculation Pump/Structured Plumbing, and Greywater System.

"Low flow toilets" use less water per flush than standard toilets, specifically 1.28 gallons per flush or less. This is significantly less than the 6 gallons that older toilets may use and 20% less than the current standard of 1.6 gallons per flush. Since toilets account for approximately 30% of a home's water consumption this saves quite a bit of water. Low flow toilets are identifiable by their "WaterSense" labels. More information is available on the EPA WaterSense site, http://www.epa.gov/WaterSense/products/toilets.html

"Low water sod" means having a lawn made of turf grass, which consumes less water than other types of grass. Choices for turf grasses that grow well in Colorado and require relatively little watering are discussed on the Colorado State University Extension site at http://www.colostate.edu/Depts/CoopExt/4DMG/Lawns/turfchoi.htm

"Xeriscaping" is an approach to landscaping intended to reduce or eliminate the need for supplemental water. It is an excellent choice over turf grass when the soil is sandy or compacted and the site is fast draining. A guide to xeriscape planning is available from the Colorado State University Extension site at http://www.ext.colostate.edu/pubs/garden/07228.html

"WaterSense by ENERGY STAR" is more than just a certification for low flow toilets. It's a certification available for a variety of water-using products like faucets, showerheads, and irrigation controls. The EPA's site for this program is available at http://www.epa.gov/WaterSense/index.html

"Low flow fixtures/shower heads" as certified by WaterSense can save an average of 2900 gallons of water per year by reducing flow on shower heads and 700 gallons per year by reducing flow on faucets. In addition to saving water, this reduced flow also lowers demand for hot water and saves energy. Read more at http://www.epa.gov/WaterSense/products/showerheads.html and http://www.epa.gov/WaterSense/products/bathroom_sink_faucets.html

"Hot water recirculation pump/structured plumbing" mentions two things. A hot water recirculation pump keeps a small amount of hot water moving through pipes near a fixture so that the water does not cool between the time the fixture is shut off and its next use. Structured plumbing is designed to minimize transportation times for hot water. eHow explains hot water recirculation at http://www.ehow.com/how-does_5598345_recirculating-work-hot-water-system_.html A brief elaboration on structured plumbing is available at http://www.greenbuildingadvisor.com/strategies/increase-efficiency-structured-plumbing

A "greywater system" uses the heat in water that has gone down the drain to warm new hot water flowing to the fixture. This is done by sending new cold water through a copper tube tightly wrapped around the drainpipe. Using a greywater or drain water heat recovery system can increase your system's capacity to generate hot water and save you energy. Read more at http://energy.gov/energysaver/articles/drain-water-heat-recovery

Colorado Green Disclosures, Item 3

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The third item is "Heating, Cooling and Ventilation." The form's options are: Ground Source Heat Pump, Tankless/On Demand Water Heater, Evaporative Cooling, High SEER A/C (with a line for SEER Rating), High Efficiency Furnace/Boiler, High Efficiency Water Heater, Whole House Fan, Ceiling Fans, Insulation Air Sealing Upgrades Completed, and Home Orientation (South Facing Overhangs).

"Ground source heat pumps" are systems in which a loop of pipe filled with some liquid, often water, is used to bring heat from the ground in winter and to send heat from the house to the ground in summer. Read more about these systems at the International Ground Source Heat Pump Association's site, http://www.igshpa.okstate.edu/geothermal/

"Tankless/On demand water heaters" are small heating units installed close to sinks or bathtubs, and sometimes washers. Cold water travels through the pipes until it reaches the heater, which is close to the faucet. The heater warms up the water on its way to the faucet. Some people don't like having a lower flow of hot water, but they do like that it is cheaper because water is not kept warm when no one needs it. More information is available at the Energy.gov site, http://energy.gov/energysaver/articles/tankless-or-demand-type-water-heaters

"Evaporative cooling" means using the process of evaporating water to cool the air in a dry, hot climate. Because evaporative cooling requires low humidity, it is not suitable for all climates. But in places like western Colorado or central California this can be used effectively. Evaporative cooling can use as little as a quarter of the energy that an air conditioning system requires. People in the desert enjoy the cool damp air that circulates through the house. It keeps furniture from drying out. People in the Grand Valley enjoy it and it goes well with heating systems that use hot water baseboard heat. These houses don't need a forced air duct system. More detail is available at the Consumer Energy Center, http://www.consumerenergycenter.org/home/heating_cooling/evaporative.html

"High SEER A/C" means that a home has an air conditioning unit with a high SEER. "SEER" means Seasonal Energy Efficiency Rating, determined by the ratio of cooling accomplished to amount of energy consumed to accomplish it. The Department of Energy's standards currently require that all new air conditioning units have a SEER of at least 13, a 30% improvement in efficiency from the previous minimum standard of 10. Some air conditioners available now have SEERs as high as 23. Read more at Energy.gov, http://energy.gov/energysaver/articles/central-air-conditioning

A "high efficiency furnace/boiler" is one that is considered efficient based on its Annual Fuel Utilization Efficiency (AFUE). AFUE is calculated by looking at how much of the energy used by a furnace or boiler produces heat for the building and how much is lost. Units with 90-98.5% AFUE are considered highly efficient. A table with current minimum AFUE standards and more information is available at http://energy.gov/energysaver/articles/central-air-conditioning

A "high efficiency water heater" uses 10-50% less energy than a standard model. The Department of Energy has formulas for calculating the efficiency of your water heater at http://energy.gov/energysaver/articles/estimating-costs-and-efficiency-storage-demand-and-heat-pump-water-heaters (As a more straightforward way of evaluating your unit, any water heater with an ENERGY STAR rating is considered highly efficient.)

"Whole house fan" means the use of a fan in a building's ceiling to cool the building by circulating air and venting it through the attic and roof. A whole house fan can function in place of an air conditioner in many climates and has the advantage of providing good attic ventilation. More information can be found at Energy.gov, http://energy.gov/energysaver/articles/cooling-whole-house-fan

"Ceiling fans" are common features in many homes which can be used to help keep residents cool in summer and warm in winter. Although a ceiling fan doesn't change the ambient temperature of a room the way an air conditioner or heater does, it moves air around in a way that feels cooler or warmer. http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=CF

"Insulation air sealing upgrades completed" means you've accomplished changes in insulation and air sealing, usually as recommended in the Home Performance with ENERGY STAR evaluation, discussed in the first post in this series at http://grandjunctionbroker.blogspot.com/2013/05/colorado-green-disclosures-item-1.html

"Home orientation (south facing overhangs)" means that the house is situated in a way that maximizes a gain of solar heat in the winter and shade in the summer. A south-facing orientation, defined as being within 30 degrees east or west of true south, with large windows picks up solar heat to warm the house in the winter, especially if windows or floors are made of materials which absorb heat. Overhangs that shade the windows in summer help keep the house cooler. You can read more at Energy.gov's Passive Solar page, http://energy.gov/energysaver/articles/passive-solar-home-design

Colorado Green Disclosures, Item 2

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The second item is the type of construction used in the home. The form's options are: SIPs, ICF, Material Efficient Framing, Improved Insulation, Straw Bale, Earthen Build/Rammed Earth, and Other.

SIPs means "structural insulated panels." These are made of insulating foam between two boards, which might be sheet metal, plywood, cement, or oriented strand board. SIPs may cost more than conventional construction materials, but can often be assembled in less time and are likely to be more efficient insulators, leading to a lower life-cycle cost for the building. You can read more at http://www.sips.org/.

ICF means "insulating concrete form." In ICF construction, forms made of stiff foam, wood fiber, cellular concrete, or a similar material, are snapped together like Lego bricks and filled with concrete. Among other benefits, ICF means minimal air leaks, if any. You can read more at http://www.icfhomes.com/.

"Material efficient framing" is a LEED term that means the waste involved in framing has been limited to ten percent or less. A technical explanation and table is available on the US Green Building Council website at http://www.usgbc.org/node/1732436.

"Improved insulation" means insulation levels beyond what is required by state building codes. Increased insulation helps a home stay warm in the winter and cool in the summer while using less energy to maintain its temperature. To check out the required codes for Colorado, go to http://energycode.pnl.gov/EnergyCodeReqs/?state=Colorado and click on the county, like Mesa County for Grand Junction.

"Straw bale" construction uses bales of straw as construction elements, insulation, or both. The straw is often composed of wheat, rice, rye, and oats. Straw-bale construction is an old practice and has been revived in the past decade. Read more at http://strawbale.sustainablesources.com/.

"Earthen build/rammed earth" construction makes walls out of earth, mixed with sand, gravel and clay, and stabilized by lime, cement, or something similar. Temporary frameworks made of wood or plywood provide a mould for the walls, which are then filled with 10 to 25 inches of earth mixture. The earth mixture is compressed to half its original height before the second layer is poured. Once the wall is complete, it is already strong enough for the forms to be removed. Sometimes this is done immediately so that texture can be applied to the walls before they harden. Rammed earth walls can be good at absorbing heat during the day and releasing it at night, controlling humidity, and providing soundproof walls. Read more at http://home.howstuffworks.com/rammed-earth-home.htm.

Colorado Green Disclosures, Item 1

When a house is listed for sale in Colorado, the seller can fill out a green disclosure form to indicate what "green" or environmentally friendly qualities the house has. Many of the terms on the form are specific terms, often abbreviated, that may be unclear. Let's go over them and discuss what they mean.

The first item asks a seller to indicate whether or not the house has been optimized under the "Home Performance with ENERGY STAR" program. "Optimizing" means that an authorized contractor carefully evaluates the house and makes recommendations designed for "whole house" efficiency. Then the seller makes a series of improvements in a specific order, so that the changes work together.

For example, the first improvement could be to seal air leaks and add insulation. This breaks down into two tasks: sealing air leaks, such as leaks in the attic floor, before adding insulation. Leaks must be sealed first so that insulation isn't filled with warm, moist air from elsewhere in the house. The consequences of moisture in attic insulation can include decreased efficiency, mold, roof rot, and ice dams on the roof.

Once leaks have been sealed and insulation has been improved, the second recommended improvement might be to upgrade old heating and cooling systems to ENERGY STAR appliances, when possible.

You can see a full example at the ENERGY STAR "What to Expect" page. You can also check out the Home Performance with ENERGY STAR for Homeowners page and find out whether this program is available in your area.

Leases and When to Give Notice

My life has been very busy. Since getting my license. I have been meeting with Paul Zurek, the Bray Office Manager, and I have a mentor. She is Vonnie Folkers, a Colorado real estate broker at Bray Real Estate. She has been a big help in helping me see how things work "in the real world."

Moving on to our real estate talk, let's discuss leases in Colorado. A lease is an agreement between a landlord/owner/lessor (whatever word you want to use) and a tenant/renter/lessee (again, whatever word you want to use). Because of the statute of frauds, a lease for longer than one year has to be in writing to be effective. However, it's always best to get a written lease because the written paper reminds people what the arrangements are.

There are four kinds of leases. There is a lease called a "tenancy for years." It's a lease for a definite time period, which could be for 1 day, 6 weeks, 4 months, 1 year, or 50 years. Because it's clear when the lease ends, no one needs to "give notice" unless he/she wants to change the length of time.

Another kind of lease is called a "periodic tenancy." This is a lease that is for a time that constantly renews. If it's a weekly or monthly lease, it continues until either the landlord or tenant gives the other party notice that he/she doesn't want it to continue. For this change, it needs to be written notice and here are some guidelines according to Colorado statutes 13-40-107:
1 year, or longer, lease—3 months notice
6 months up to 1 year lease—1 month notice
1 month up to 6 months lease—10 days
1 week up to 1 month lease—3 days

There's also "tenancy at will," which is when a landlord and tenant have an informal arrangement that exists until one party isn't interested any more or some event takes place. For example, this could happen when a property is for sale and the agreement exists until it is sold. Only 3 days notice is needed in a tenancy at will. That isn't much notice, but often the people involved know what's going on before the official notice is needed. These are friendly leases.

Finally, there is also something called "tenancy at sufferance." This happens when the tenant stays after a lease has ended. The landlord can decide to renew the lease, accept rent and/or change the rental terms, or evict the tenant. For eviction, the landlord needs to give notice. Obviously the tenant wouldn't give an eviction notice.

Now we've talked about leases expiring and the tenant getting evicted. Two other ways to end a lease are "surrender and acceptance," which is when both the landlord and tenant agree to end the arrangement, and "breach of conditions," which is when either the landlord or the tenant agreed to do certain things and it just didn't happen. Depending on what happened, the wronged party may walk away from the lease.

If you need other information, there is information at the Colorado Division of Housing.

I Have an Official License & I'll Be Working with Bray Real Estate

I'm back with good news. I checked online at the Colorado Division of Real Estate, and this week I found my name actually listed as a genuine Colorado real estate broker.

Soon I'll get back to using this blog to share real estate information with you, but before that I have a little more good news: I've joined Bray Real Estate in Grand Junction, Colorado. AND I went on my first tour of homes today.

I promise to be back soon with another round of information and explanations.

Passed My Tests & Applied For My License

Hi again, I've been gone for about a month because I've been studying and I took the final exam for the online real estate class. I went to Denver and took it there. I also had to bring in all those binders I got in October and show that I had done the work in them. I passed both the exam and the entire class.

After that I studied and took the official national and state tests required by the Colorado Real Estate Commission. By the way, I passed those, too. What a relief!

Now I have sent in my real estate license application along with the requested fee. I'm waiting for them to issue my official license. Then I'm in business as a broker associate. I'll be working for an employing broker for two years. Exciting things are coming!

Water in Colorado

Hello, readers, I'm back! I've had a couple of family issues going on that have kept me busy. Around all that, I have still been studying like crazy.

One of the topics that I have been studying that is complicated in real estate is water rights. Everybody needs water, but not everyone can own water. And, certainly in Colorado, people cannot do whatever they want with water.

A long time ago, when Colorado became a state in 1876, the founders placed water issues directly into their state Constitution. If you want to see, there is a copy of the Colorado Constitution held in the archives. If you look on page 42, you will see Article 16, Section 5 states: "The water of every natural stream, not heretofore appropriated, within the state of Colorado, is hereby declared to be the property of the public, and the same is dedicated to the use of the people of the state, subject to appropriation as hereinafter provided."

What this means is that the State of Colorado governs the use of water in the state. Section 5 essentially states that any water not already claimed and being used, was owned by the public and the state would make decisions about it. The next section, Section 6, states that if someone wants to use unclaimed water for beneficial reasons, there is a priority about that use. When there isn't enough water for all uses, domestic use has first priority. After that, agricultural use is second, and manufacturing use is third and last.

This makes good sense, as long as farmland isn't condemned and replaced by subdivisions, making us lose too much of our food source. However, it seems that the court cases since then have been interested in paying farmers for their water rights.

In the constitution, Sections 7 & 8 cover the "right of way" across land for constructing waterways for those mentioned uses, and establishing rates for water use. Obviously lots of tweaking has occurred with water rights since 1876, but the state still has a tight hold on water. Since the public owns the water, people only get the right to USE the water and only if it's for an ACCEPTABLE USE. Also there is a "pecking order" of who gets to use water, like from a river, before other people get to use it.

This means that in order to do something like build a water fountain in your backyard, unless you want to use your domestic, drinkable water, lots of issues would need to be addressed first. You would definitely need a permit. Whether or not you could get a permit would depend on if you were disturbing a shallow water table beneath your yard, if you even have the right to store water, if you would be "impounding water" (like a dam) above the ground's surface, where you would get the water for filling the fountain, etc.

In another example, let's say you wanted to buy a house with a plot of land or a farm with some acreage. You'd need to make sure you understand where the potable, or drinkable, water comes from. If you are interested in real estate, make sure you notice on the listing contract, the sales contract, and/or the seller's property disclosure information about the water source. The drinkable water could come from a well, a company or municipality, or neither, in which case the water source has to be mentioned. For example, it could be a cistern that you need to refill by hauling water in a tank with a truck. If other water is needed for animals, gardens, or fields, it is important to find out if stocks are needed to purchase the use of that water, whether it comes canals or ditches, and whether using that water involves an additional purchase and real estate deed. Water doesn't automatically go with the land; it's treated as a separate transaction.

There are two more things I want to share with you. The first is that the Colorado Division of Water Resources has a lot more information. It is also the "Office of the State Engineer" that "administers water rights, issues water well permits, represents Colorado in interstate water compact proceedings, monitors stream flow and water use, approves construction and repair of dams and performs dam safety inspections, issues licenses for well drillers and assures the safe and proper construction of water wells, and maintains numerous databases of Colorado water information."

The second thing is that there are attorneys in Colorado who specialize in water rights and uses. If you are buying land that needs irrigation or has a well, you might want to get help with it. If you go to the Colorado State Bar Association directory and look up "Water Law," attorneys are listed.

You may find it easiest to have someone who's specialized in learning about these things help you, like a Grand Junction broker!

Real Estate Brokerage Relationships in Colorado

I hope everyone had a nice Thanksgiving Day yesterday! I did. We ate, were disappointed to see the Dallas Cowboys lose to the New Orleans Saints, and Skyped with our children. Holidays aside, I have been studying like crazy. There is so much to learn. Not only does Colorado want real estate people to learn everything at the broker level, but the Real Estate Commission also wants to go to great lengths to protect the public. They want the people to understand what's going on.

Today I'd like to talk about the different relationships someone (who could be an individual, more than one person, a partnership, and a company) can have with a Colorado real estate broker. I'd also like to give you a link to the "Consumer Corner" of Colorado's Division of Real Estate. They have lots of good information for people interested in buying or selling a house.

Now, in plain words I'll tell you the three basic ways I can have a working relationship with you, and then I'll tell you my obligations to you based on that relationship. The first type of relationship is as a customer. If I meet you and I don't know your name, or I meet you when I am working as an agent for someone else, you are a customer to me. We do not have any written agreement.

The next type of relationship is as an agent. I could be a seller's agent or a buyer's agent, but we have a written contract and I have obligated myself to "represent you" or work FOR you. You are my client or principal, or whatever the legal jargon is, and I may not necessarily get paid by you, but I will work on your behalf.

The third type is as a transaction broker. There may or may not be a written contract and the relationship is in-between a customer and a client. If there is no written contract and I am working with you in some way, Colorado considers the transaction-broker relationship as the default way that we are working together.

You don't get any special designation if you are in a transaction brokerage relationship with me or any Colorado real estate broker, although maybe the law will eventually come up with a name besides "party." However, I have more obligations to you when you are a party than when you are a customer.

Although it may seem obvious, in any of these relationships, I want you to know that I do not have any obligation to do anything illegal.

Now, to help you choose, I'd like to spell out some of the obligations I have to you. I have the fewest obligations to a customer and the most obligations to a client. However, I do have responsibilities to customers.

When I am a Colorado real estate broker, and you are a customer, I owe to you all the obligations owed under state and federal consumer protection laws. I owe you:
(1) Honest and fair dealings—For example, this means that if we are trying to work a deal together, I must tell you if I am an agent for someone else in the same deal, so that you don't tell me information that I can use FOR my client.
(2) Reasonable care and skill in performance—For example, if you give me a "good faith deposit," I must be very careful to deposit it into an appropriate trust or escrow account.
(3) Disclosure of all material facts about the property that I know or that I should have known—For example, if the property has a house built before 1978 and there is a possibility of lead-based paint, I need to tell you about that possibility as well as give you federal information.

When I am a Colorado real estate broker, and we are in a transaction broker relationship, I still owe you the same obligations I owe to a customer. The examples may be different, but I still need to treat you ethically and responsibly. In addition to those obligations, I owe you:
(1) Performance of the terms we set in the written agreement—For example, I will present all offers to you and help you fill out any Colorado Real Estate Commission approved forms.
(2) Neutrality and confidentiality—I may be working with another person as a transaction broker in the same purchase, so I need to advocate for neither and neutrally help both parties. I also need to not disclose to either party confidential information about the other party. What you tell me, stays with me and what the other person tells me, stays with me. However, in following "disclosure of all material facts," including information about the seller’s property, I must disclose a buyer's financial ability to complete the transaction and whether the buyer intends to live in the residential property.
(3) Assistance with closing—For example, I will help organize a list of deadlines so that obligations can get done before the closing.

When I am a Colorado real estate broker, and I am an agent for the seller or the buyer, I still owe the same obligations as to a customer. I also owe you all the obligations in a transaction brokerage, except for neutrality. I go beyond neutrality and I work FOR you. I work hard to fulfill the terms of our contract. I advocate for you, which means I encourage and protect your interests with maximum loyalty and faithfulness. My focus becomes figuring out the best way to solve any issues and presenting that information to you. I spend lots of time and effort trying to accomplish the goal of the contract. I also want to give you any knowledge, experience, and advice that will help you along the way.

The best reason to have an agency relationship - to be my client - is to have an ally during a very complicated process that involves a lot of your money. An advocate is someone who stands beside you and fights for you. I would also want to make sure that you understand everything as things happen. I absolutely hate buying or selling houses when I'm surprised about what's happening. I really want to know BEFORE it happens. By the way, something interesting about Colorado real estate law is that I can be a buyer's agent and get paid by the seller, so it may not cost the buyer any extra to have my help.

In case you want more information about Colorado real estate working relationships, you can also look at Chapter 14 of the 2009 Colorado Real Estate Manual.

I got my books! (Day 2)

I opened the box from the real estate online class, and inside I found two big, 2" binders, one 1 ½" binder, and two books. There also was some information from the school, including a paper fingerprint card. You may be wondering why I received a fingerprint card; I'll explain.

There is a great website with information about the Colorado legal requirements for getting real estate broker license. It is the Colorado Division of Real Estate. When applying for a new real estate broker's license, there is an application form that has lots of information.

On that form, it states: "Before submitting an application for a real estate broker license, each applicant shall submit a set of fingerprints to the Colorado Bureau of Investigation for the purpose of conducting a state and national fingerprint-based criminal history record."

So I'll be submitting a set of fingerprints, being sure to turn them in so that Colorado Bureau of Investigation, or CBI, has enough time to process them.

My class starts Monday, October 4th. I'm looking forward to it. In the meantime, it's a beautiful fall. Time to go up to the Grand Mesa and look at the leaves changing color.

First Steps

I have been answering phones at KAFM for their 2010 Fall Pledge Drive today. They had another open slot tomorrow, so I'm going back to answer phones again. KAFM is a wonderfully unique community radio station, one I'm glad to support.

I also want to support people in the processes of buying and selling their homes, although I really won't know how effective I'll be until I start doing it. I have been in a service industry, tutoring people about computers for many years in Oregon, but I don't know how my tutoring skills will transfer to real estate.

I think the thing that is going to make the difference is that I am lucky enough to be part of a mentoring program. In "Mentors and Mentoring: What is a mentor?" by F. John Reh, from the About.com Guide, it mentions: "The original Mentor is a character in Homer's epic poem The Odyssey. When Odysseus, King of Ithaca went to fight in the Trojan War, he entrusted the care of his kingdom to Mentor. Mentor served as the teacher and overseer of Odysseus's son, Telemachus."

In Merriam-Webster Online, a mentor is defined as a trusted counselor, guide, tutor, or coach. No matter the origin or meaning, I like having someone with experience and the ability to do a reality check that will keep me headed in the right direction.

I'm now signed up for my online real estate class; as soon as my materials arrive, I'll be able to begin.

Introductions

Hello. My name is Davienne Jacobson. I'm named after my dad, Davie, and my name is pronounced "day-veen."

My husband and I moved to Grand Junction in May 2010, just four months ago. I love it here and I have a lot of faith that Grand Junction is going to continue to grow. After all, the U.S. Census Bureau that tracks "Metropolitan and micropolitan statistical area population and estimated components of change: April 1, 2000 to July 1, 2009" put this area's population at 146,093 in 2009. That's 15,000 more people since the year 2005. And if you go to Sperling's Best Places, choose Grand Junction Metro area, click on the economy section and scroll to the bottom, it says: "Future job growth over the next ten years is predicted to be 19.42%." That's all quite encouraging for Grand Junction, and for my future career as a Colorado real estate broker.
The next thing for me to do is to sign up online at a Colorado real estate institute that offers a class on how to get my associate broker license. Eventually I'll be a Grand Junction Broker, just as the title of this blog suggests.