(1) The commission may impose an administrative fine not to exceed two thousand five hundred dollars for each separate offense; may issue a letter of admonition; may place a registrant on probation under its close supervision on such terms and for such time as it deems appropriate; and may refuse, revoke, or suspend the registration of any developer or registrant if, after an investigation and after notice and a hearing pursuant to the provisions of section 24-4- 104, the commission determines that the developer or any director, officer, or stockholder with controlling interest in the corporation: (a) Has used false or misleading advertising or has made a false or misleading statement or a concealment in his or her application for registration; (b) Has misrepresented or concealed any material fact from a purchaser of any interest in a subdivision; (c) Has employed any device, scheme, or artifice with intent to defraud a purchaser of any interest in a subdivision; (d) Has been convicted of or pled guilty or nolo contendere to a crime involving fraud, deception, false pretense, theft, misrepresentation, false advertising, or dishonest dealing in any court; (e) Has disposed of, concealed, diverted, converted, or otherwise failed to account for any funds or assets of any purchaser of any interest in a subdivision or any homeowners' association under the control of the developer or director, officer, or stockholder; (f) Has failed to comply with any stipulation or agreement made with the commission; (g) Has failed to comply with or has violated any provision of this article 10, including any failure to comply with the registration requirements of section 12-10-503, or any lawful rule promulgated by the commission under this article 10; (h) Has refused to honor a buyer's request to cancel a contract for the purchase of a time share or subdivision or part thereof if the request was made within five calendar days after execution of the contract and was made either by telegram, mail, or hand delivery. A request is considered made if by electronic mail when sent, if by mail when postmarked, or if by hand delivery when delivered to the seller's place of business. No developer shall employ a contract that contains any provision waiving a buyer's right to such a cancellation period. (i) Has committed any act that constitutes a violation of the "Colorado Consumer Protection Act", article 1 of title 6; (j) Has employed any sales agent or employee who violates the provisions of this part 5; (k) Has used documents for sales or lease transactions other than those described in section 12-10-503 (3)(f); (l) Has failed to disclose encumbrances to prospective purchasers or has failed to transfer clear title at the time of sale, if the parties agreed that the transfer would be made at that time. (2) A disciplinary action relating to the business of subdivision development taken by any other state or local jurisdiction or the federal government shall be deemed to be prima facie evidence of grounds for disciplinary action, including denial of registration, under this part 5. This subsection (2) shall apply only to such disciplinary actions as are substantially similar to those set out as grounds for disciplinary action or denial of registration under this part 5. (3) Any hearing held under this section shall be in accordance with the procedures established in sections 24-4-105 and 24-4-106. (4) When a complaint or investigation discloses an instance of misconduct that, in the opinion of the commission, does not initially warrant formal action by the commission but that should not be dismissed as being without merit, the commission may send a letter of admonition by certified mail, return receipt requested, to the registrant who is the subject of the complaint or investigation and a copy thereof to any person making the complaint. The letter shall advise the registrant that he or she has the right to request in writing, within twenty days after proven receipt, that formal disciplinary proceedings be initiated against him or her to adjudicate the propriety of the conduct upon which the letter of admonition is based. If the request is timely made, the letter of admonition shall be deemed vacated, and the matter shall be processed by means of formal disciplinary proceedings. (5) All administrative fines collected pursuant to this section shall be transmitted to the state treasurer, who shall credit the same to the division of real estate cash fund.
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