Real estate agents in Colorado have a lot of work ahead of them, so it’s not surprising that many agents would look to a TC to enable them to get more sales closed and ensure that the transaction is compliant.
In this article, we’ll cover the basics of real estate transaction coordination in Colorado, including why it’s considered a wet funding state, who handles closings, and the expectations for a TC in Colorado.
Finally, we’ll talk about why Close Concierge is the best place to find TCs for Colorado real estate contracts. Read on for more info!
Wet Funding in Colorado
Whether a state has “wet funding” or “dry funding” depends on when the mortgage is officially considered as closed. Once the mortgage is closed, funds are distributed and the new owner can obtain the keys and possession of the property.
Colorado is a “wet funding” state, which means that the rules and regulations in place are far stricter than in “dry funding” states. Wet funding states require that all of the paperwork that’s needed to officially close the loan have to be completed and approved on the day of the loan closing. With this funding setup, the seller gets their payment for the home on the loan closing date or within two days of closing.
This means the process is moved along much more quickly than the dry funding dates, where no mortgage funds are distributed to the seller on the day of closing. Though dry funding isn’t as fast as other funding methods, it’s in place in certain states (mostly on the west coast or near it) to ensure that there aren’t any issues with the closing process.
Who Handles Closings in Colorado?
Some states are considered “Escrow States,” whereas others are considered “Attorney States.” That is, in some states, a title company handles the escrow process, and in others, an attorney must do so. Some states allow both – and Colorado is one such state.
According to Sandy Gadow, a writer, consultant, and former title and escrow officer known as “The closing expert,” went into more detail on her State by State Closing Guide blog:
(In Colorado,) title companies, brokers, and attorneys all may handle closing. Conveyance is by warranty deed. Deeds of trust are the customary security instruments. Although they are negotiable, closing costs are generally split between the buyer and seller, and the seller normally pays for title insurance. Sellers pay the title insurance premium and the documentary transfer tax. Property taxes must be paid annually at the end of April or semiannually at the ends of February and July.
Because Colorado is so flexible as far as who handles closings, the level of involvement that a TC would have in the real estate transaction process would likely depend on what the seller has decided (whether to work with a title company, broker, or attorney). According to the Elevations Credit Union blog, though, it ultimately depends on what was agreed to in the contract:
It is typical in Colorado for the seller to select the title insurance company and to pay for the owner’s title insurance, although fees may be negotiated otherwise in the Colorado contract. Discuss this with your realtor, as it is part of the negotiation process between buyers, sellers, and their realtors.
How Colorado TCs Help Real Estate Agents
The way that a transaction coordinator helps licensed agents in Colorado is very similar to how a TC would help someone in another state.
Tasks that a Colorado TC Can Do
In the state of Colorado, unlicensed TCs can do the following:
- Complete forms prepared for and as directed by a broker. They may only complete the tasks the broker has directed them to do, and there are several tasks related to this that they can’t complete (see below for more information).
- Distribute pre printed information about a property listed for sale. This information must be objective and have been already prepared by the broker.
- Perform clerical duties. This can include gathering information for a listing.
- Provide access to property, conduct showings or open houses. These tasks may only be completed by a TC if they’ve been authorized by the seller.
- Deliver paperwork. A TC can deliver paperwork to other brokers, buyers, or sellers. Paperwork that requires signatures may also be delivered by a TC, as long as the paperwork has been prepared by lending institutions.
- Prepare market analyses on behalf of the broker. The analyses must be approved and submitted by the broker to the client with a disclosure statement that the analyses were prepared by an unlicensed assistant. The broker has to ensure that the analyses comply with Commission Rule E-42.
- Collect and receipt payments. These payments may include earnest money deposits, security deposits, or rents.
- Schedule property repairs. A real estate transaction coordinator may do this on the broker’s behalf if there’s an existing agreement that authorizes the broker to make repairs to the property.
Ultimately, the job of a TC is to provide top-notch service to a licensed real estate agent and their clients without causing any legal or compliance issues. They have to be effective communicators in order to ensure the licensed real estate agent looks fantastic in the eyes of their clients. Maintaining real estate pipeline integrity is one of the main ways they do this.
Tasks that a Colorado TC Can’t Do
There are several tasks in Colorado that an unlicensed assistant or real estate transaction coordinator can’t do:
- Negotiate, list, or sell real property. Because a TC is often unlicensed, they aren’t permitted to take part in any of these activities or they (or the broker/agent who hired them) risk legal ramifications.
- Prepare legal documents. Unlicensed assistants can’t independently draft legal documents like listing and sales contracts.
- Offer opinions. Legally, an unlicensed real estate transaction coordinator is unable to offer their opinion or advice on legal documents. They may not interpret such documents either.
- Distribute info on listed properties. A TC isn’t permitted to disseminate or distribute info on listed properties except for information that’s prepared ahead of time by the employing broker or salesperson.
Transaction Coordinator Jobs: Sample Listings
Predictably, TC jobs vary based upon the firm the TC is looking for. For that reason, here’s a rundown of the duties for several transaction coordinator jobs in Colorado, along with an idea of the expected salary for each company.
Redfin is a full-service brokerage that was built to streamline the buying and selling process and ultimately save homeowners thousands of dollars in fees. The company was founded in 2004 in Seattle and went public in 2017 in August. Glenn Kelman is the CEO of the company.
Redfin TC Duties
Full-time TCs at Redfin are expected to:
- Act as a liaison between all parties involved in the transaction process
- Answer clients’ questions and guide them through the closing process
- Coordinate and schedule post-mutual appointments and events
- Use the online tools to track customer progress and share information across teams
- Be available to work Monday through Friday from 9 AM to 6 PM
At Redfin, they require that TCs have a real estate license, so they could do some of the tasks listed under “Tasks a Colorado TC Can’t Do” section, provided that they are authorized to do so.
Expected Salary at Redfin
The annual salary at Redfin isn’t listed, but it states that the job is full-time and starts at $16.39 an hour, which would average to an annual salary of $34,091 for employees that don’t take holidays (or have paid holidays) and $30,813 for employees who take 10 holidays and 15 vacation days a year.
DRG Invest is a full-service investment, property management and brokerage. It was started in 2008 by Zack Koblica and Jacob Chase in Denver, Colorado (under the name “Denver Realty Group”). On January 15, 2014, DRG investment group, LLC. was formed.
DRG Invest TC Duties
The expected outcomes for transaction coordinators who are looking to fill this position at DRG Invest/Capital Brokerage Group are:
- 100% accuracy and met real estate contract deadlines
- High scores on broker and seller satisfaction
- Effective communication and scheduling support
- Compliant transactions
- Great communication and service
- Maintain and enhance real estate pipeline integrity
- Develop and improve existing transactions checklists
- Grow referral business to the brokerage
Expected Salary at DRG Invest
The expected salary for a full-time TC at DRG Invest for the position at Capital Property Group is $55,000-$60,000 a year.
LIV Sotheby’s International Realty
LIV Sotheby’s is a Colorado’s leading luxury real estate firm that holds a strong emphasis on lifestyle. It was founded in 1976 by Sotheby’s fine art dealers and focuses on brokering and marketing residential real estate. It is headquartered in Madison, New Jersey, and the current CEO is Philip A. White, Jr.
LIV Sotheby’s International Realty Duties
The responsibilities of a TC at LIV Sotheby’s International Realty include:
- Assist the broker with pre-listing items
- Coordinate media and sign installation requests
- Enter and maintain office listings
- Assist with minor In-Design creation/printing materials
- Assist brokers in all aspects of contract management including syndication
- Contract preparation (licensed TCs only)
- Update under contract properties within the LIV SIR system
- Send relocation all applicable closing documents (if relocation transaction)
- Ensure relocation documentation is up-to-date
- Make copies of settlement statements and HUD letter for year-end taxes
- Upload all final closed docs into TMS and LIV SIR OneDrive
- File Audit for Compliance (licensed TCs only)
- Maintain a professional, clean and organized work environment
- And more (check the link above for more info)
At LIV Sotheby’s, they require a minimum of one or more years as a TC, and prefer a real estate license (or willingness to obtain one). They also encourage applicants to be team players, have strong communication skills and a strong work ethic in a fast-paced environment. Work hours are Monday through Friday from 8:30 AM to 5 PM.
Expected Salary at LIV Sotheby’s International Realty
The expected salary at LIV Sotheby’s is $60,000-$70,000 a year, and full time employees are eligible for PTO in accordance with their PTO policy.
TC Options for Agents in Colorado
In our Fee Structure article, we gave a breakdown of the average costs of employing an in-house TC, a freelance TC, and using a TC service. If you want an in-house TC, they can cost a great deal of money – as seen above based on the job listings. A freelance TC charges about $400 per transaction but there’s no guarantee that they’ll be a quality TC (or even know what earnest money is).
A TC service vets their employees, so you can rest assured that the TC will at least have a working knowledge of transaction coordination. That said, many TC services hire people as 1099 employees, which means that they don’t get the privileges that come with being a full time employee. To our knowledge, every TC service does that – except for us. At Close Concierge, we know transaction coordination is a tough job, and we compensate our employees for that.
We hire our employees full time at about double what most transaction coordinators are paid. We also offer extensive benefits, such as medical, dental, and vision coverage, PTO, and profit sharing. We do all of this to attract and retain only the best talent, so that our clients can enjoy the peace of mind from knowing they’ve got the best TCs in the business.
Let Us Handle Your Colorado Real Estate Contracts
Knowing all of that, you may be wondering how much it’d cost you to hire a transaction coordinator with Close Concierge. The good news is that, for top-performing real estate agents, the cost is well worth it. You can get a TC through us for just $1,000 a month. If you’re closing more than three deals a month, that makes it well worth it! And since we charge a flat fee, your cost will never go up – which means you’ll benefit even more if you close more deals!
Close Concierge: the premier choice for top-performing agents in Colorado. Sign up for a demo with us today for stress free, compliant transactions!