C.R.S. Section 38-30-165
Unreasonable restraints on the alienation of property

  • prohibited practices

(1)

Subject to the limitations and exceptions as provided in this section, any person with a security interest in real estate shall not, directly or indirectly:

(a)

Accelerate or mature the indebtedness secured by such real estate on account of the sale or transfer of such real estate or on account of the assumption of such indebtedness; except that this paragraph (a) shall not apply if the person to whom the real estate would be sold or transferred is reasonably determined by the person holding the security interest to be financially incapable of retiring the indebtedness according to its terms, based upon standards normally used by persons in the business of making loans on real estate in the same or similar circumstances; or

(b)

Increase the interest rate more than one percent per annum above the existing interest rate of the indebtedness or otherwise modify, for the benefit of the holder of the security interest, the terms and conditions of the indebtedness secured by such real estate, on account of the sale or transfer of such real estate or on account of the assumption of such indebtedness; or

(c)

Charge, collect, or attempt to collect any fee in excess of one-half of one percent of the principal amount of the indebtedness outstanding, on account of the sale or transfer of such real estate or on account of the assumption of such indebtedness, not including title insurance, abstracting, credit report, survey, or other charges appertaining to the sale; or

(d)

Enforce or attempt to enforce the provisions of any mortgage, deed of trust, or other real estate security instrument executed on or after July 1, 1975, which provisions are contrary to this section; but this section shall not be applicable to instruments executed prior to July 1, 1975, nor to the rights, duties, or interests flowing therefrom.

(2)

The maximum increase allowed in paragraph (b) of subsection (1) of this section and the maximum fee allowed in paragraph (c) of subsection (1) of this section shall not be deemed required, minimum, or ordinary, but said interest increase and fee may, in any case, be less than the amount allowed.

(3)

This section shall be applicable only to a security interest in real property utilized as residential dwelling units other than motels, hotels, and nursing homes.

(4)

This section shall not be applicable in those cases in which the secretary of the department of housing and urban development, or his successor, matures the indebtedness on multiple-family housing projects pursuant to the current law and regulations of the federal housing administration.

(5)

This section shall not be applicable to a person with a security interest in real estate who is not regularly engaged in the business of making real estate loans.

(6)

In the event that the party assuming the indebtedness declines to agree to an increase in the interest rate as provided in paragraph (b) of subsection (1) of this section, said indebtedness may be prepaid without penalty or increased interest at any time within sixty days after said assumption; but if he does not make such prepayment within the sixty-day period he shall be liable for the increased interest rate from the date of the assumption, and any prepayment penalty provided for in the security instrument shall thereafter be in effect.

(7)

The provisions of subsection (1) of this section shall not apply in cases of mortgage loans made on or after January 1, 1981, with proceeds of bonds issued pursuant to article 3 of title 29, C.R.S.

(8)

The provisions of subsection (1) of this section shall not apply to indebtedness made or acquired by the Colorado housing and finance authority on or after April 1, 1981, secured by real estate, when said authority accelerates or matures, or requires or permits the acceleration or maturing of, indebtedness secured by real estate or when said authority increases, or requires or permits the increase of, the interest rate more than one percent per annum above the existing rate of the indebtedness in accordance with regulations of the Colorado housing and finance authority.

Source: Section 38-30-165 — Unreasonable restraints on the alienation of property - prohibited practices, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

38‑30‑101
Parties entitled to hold lands may convey 38‑30‑102
Water rights conveyed as real estate - well permit transfers - legislative declaration - definitions 38‑30‑103
Livery of seisin, not necessary 38‑30‑104
Vendor’s after-acquired title deemed in trust for vendee 38‑30‑104.5
Grantor’s interest in vacated right-of-way deemed included 38‑30‑105
Lands not in possession may be conveyed 38‑30‑106
Tenant in fee tail takes in fee simple 38‑30‑107
Estate granted deemed fee simple unless limited 38‑30‑107.5
Royalty interests - minerals or geothermal resources 38‑30‑108
Conveyances to grantee in a representative capacity 38‑30‑108.5
Conveyances to trusts - ownership and transfer of property 38‑30‑110
Rule against perpetuities inapplicable to cemetery trusts 38‑30‑111
Rule against perpetuities inapplicable to employees’ pension trusts 38‑30‑112
Rule against perpetuities inapplicable to existing trusts 38‑30‑113
Deeds - short form - acknowledgment - effect 38‑30‑113.5
Beneficiary deeds 38‑30‑114
Validation of acknowledgments 38‑30‑116.5
Preparation of deeds - definition 38‑30‑117
Mortgages - short form - acknowledgment - effect 38‑30‑118
Seal not necessary 38‑30‑119
Posthumous children take as others 38‑30‑120
Conveyance carries right of possession 38‑30‑121
What covenants run with the land 38‑30‑122
No action against warrantor without notice and refusal to defend 38‑30‑123
Powers of attorney must be recorded 38‑30‑124
Powers of attorney, how acknowledged and proved 38‑30‑125
Scroll sufficient 38‑30‑126
Acknowledgments, before whom taken 38‑30‑127
Acknowledgments taken pursuant to other laws 38‑30‑128
Prima facie validity of prior foreign acknowledgments 38‑30‑129
courts may take acknowledgments 38‑30‑130
Governor may appoint commissioners of deeds 38‑30‑131
Oath of commissioner of deeds 38‑30‑132
Effect of commissioner’s acknowledgment 38‑30‑133
Commissioner has power to administer oath 38‑30‑134
Fees of commissioners 38‑30‑135
Officer shall subscribe certificate 38‑30‑136
Subsequent proof of execution - proof or acknowledgment of copy 38‑30‑137
Recording of leases based on crop rentals 38‑30‑138
Filing and recording fee 38‑30‑140
Foreign deeds - translation - proof - not recorded without 38‑30‑141
Conveyance by county or municipality 38‑30‑142
Prior deeds and conveyances by commissioners validated 38‑30‑143
Prior deeds and conveyances by council validated 38‑30‑144
Conveyance by corporation 38‑30‑145
Conveyance by sheriff 38‑30‑146
Fraternal society may hold and convey real estate 38‑30‑147
Presiding officer may bring suit to protect property 38‑30‑148
Joint property of fraternal society 38‑30‑149
Change of presiding officer not to affect suit 38‑30‑150
Definitions 38‑30‑151
Division of county - transcript of records - certificate 38‑30‑152
Not applicable to wills 38‑30‑153
Recording wills and decrees affecting lands - descents 38‑30‑154
Clerk shall furnish certified copies 38‑30‑155
Certified copy of record shall be evidence of title 38‑30‑156
Fees for county clerk and recorder 38‑30‑157
Same use prohibition or restriction repeated in subsequent instruments taking effect on or after January 1, 1966 - exception 38‑30‑158
Record notice required for same use prohibition or restriction repeated in subsequent instruments taking effect prior to January 1, 1966 - exception - affidavit as to ownership and possession 38‑30‑159
Who may record notice of intention to claim possibility of reverter or right of entry 38‑30‑160
Contents of notice - recording, indexing - effect 38‑30‑161
Use prohibition or restriction affecting less or more real property - more or fewer use prohibitions or restrictions 38‑30‑162
Interests and instruments to which sections 38-30-157 to 38-30-164 do not apply 38‑30‑163
Other statutes and laws remain applicable 38‑30‑164
Sections to be liberally construed 38‑30‑165
Unreasonable restraints on the alienation of property - prohibited practices 38‑30‑166
Joint ventures - ownership and transfer of property 38‑30‑167
Right of purchaser to obtain partial specific performance 38‑30‑168
Unreasonable restrictions on renewable energy generation devices - definitions 38‑30‑169
Instruments of conveyance - removal of void and unenforceable restrictive covenants which are based upon race or religion 38‑30‑170
Private restrictive covenants - modification - exception - procedures 38‑30‑171
Survival of remedies and title to corporate property after dissolution 38‑30‑172
Evidence of existence and authority - definitions 38‑30‑173
Survival of remedies and title to corporate property after dissolution - nonprofit corporations
Green check means up to date. Up to date

Current through Fall 2024

§ 38-30-165’s source at colorado​.gov