If you’re buying or selling a home in Colorado, a new state law is putting more details of your transaction in writing—and in plain language.
House Bill 26-1426 (HB 26-1426) was signed by Governor Jared Polis in June 2026 and takes effect in August 2026. Building on the national real estate settlement that reshaped how real estate commissions are handled, HB 26-1426 writes several of those consumer protection changes directly into Colorado state law.
Here is a quick breakdown of what is changing, why it matters, and how it impacts your next home purchase or sale.
What Is Changing Under HB 26-1426?
Three key updates in the new law directly affect everyday buyers and sellers in Colorado:
- Mandatory Written Compensation Agreements: You must sign a written agreement with your real estate agent that clearly spells out how much they are being paid and who is paying them. While this became common practice after the national settlement, Colorado is now making it a strict legal requirement.
- Required Legal Counsel Advice for Non-Standard Contracts: If you are buying a new-construction home or a property where a builder, bank, or seller requires you to use their custom purchase contract instead of a standard Colorado Real Estate Commission form, your agent is now legally required to advise you to seek independent legal advice before signing.
- Stricter Penalties for Unlicensed Real Estate Activity: Practicing real estate without a valid license now carries severe consequences under the Colorado Consumer Protection Act, moving beyond basic administrative licensing complaints.
Why HB 26-1426 Matters to Buyers and Sellers
Every change in this law points toward a single goal: clearer expectations before you sign anything.
Under HB 26-1426, consumers benefit from:
- Full Transparency: Knowing exact broker compensation terms up front.
- Built-in Protection: Being encouraged to get an independent legal opinion when signing non-standard builder or bank contracts.
- Consumer Trust: Stronger legal enforcement against unlicensed individuals operating in high-stakes property transactions.
At Novella Real Estate, clear negotiated compensation, transparent communication, and client advocacy have always been core to how we operate. HB 26-1426 simply codifies these standards for every real estate brokerage across Colorado.
Are Real Estate Commissions Fixed in Colorado?
No. Real estate commission and compensation remain fully negotiable between you and your broker.
Nothing in HB 26-1426 sets or limits real estate fees. Instead, the law ensures that compensation discussions happen openly, in writing, and before you are deep into a real estate transaction.
Navigating Your Next Colorado Real Estate Transaction
If you are currently working with a Novella Real Estate agent, they can walk you through exactly how these required disclosures appear in your paperwork.
If you are just beginning your buying or selling journey, now is the ideal time to ask any prospective agent how they handle contract reviews and compensation disclosures under the new 2026 Colorado requirements.
Novella Real Estate | Smart Tools. Real People.
Disclaimer: This article is provided for general informational purposes and does not constitute legal advice. For questions regarding a specific real estate transaction or non-standard contract, please consult a licensed Colorado real estate attorney.
