Metrolist balks at letting state see home-sale data

Files sought to fight fraud; Realtor group insists on subpoena

John Rebchook, Rocky Mountain News

Thursday, December 14, 2006

Colorado Division of Real Estate Director Erin Toll wants Metrolist data on Denver-area home sales as part of her effort to tackle appraisal fraud, but Metrolist doesn't plan to just hand it over.

Metrolist, owned by local Realtor groups, wants Toll to file subpoenas or get court orders, instead of letting her join the organization to obtain the information.

Toll and others think inflated appraisals are contributing to the growing number of foreclosures in the state and region.

"It's like having my hands tied behind my back," without the data, Toll said. The data would allow her to determine which homes appraisers are using, or should be using, as comparable properties when making appraisals.

In the first 11 months of this year, a record 17,782 foreclosures have been filed in the metro area. In November, the state's foreclosure rate was second only to Nevada's, RealtyTrac, based in California, reported this week. Colorado was No. 1 the previous eight months.

State officials say forcing Toll to obtain court orders would be expensive, time- consuming and not the best use of taxpayers' money.

"We really hope it doesn't come to that," said Geoffrey Hier, spokesman for the Colorado Department of Regulatory Affairs, which includes the real estate division.

"It would be a lot easier and friendlier if they would just let Erin pay their standard fee to be a member, give her a password, and let her access the data," Hier said. "It's obviously a tool we could use to protect the public. Our department always looks at using our resources in the most efficient way we can, and we think paying their standard fee would be a very reasonable expense for us. Anytime you start involving a legal process, it is more expensive."

Melissa Olson, spokeswoman for Metrolist, said the group has been meeting with Toll since late October and had expected her to seek a subpoena or get a court order to obtain access to the data. She said Metrolist would "cooperate" with a legal request. However, that could involve seeking to quash the subpoena and than going to a court hearing to settle the matter.

Metrolist officials were "quite taken aback" that Toll asked to be a member, Olson said, because Toll would not qualify to join because she doesn't sell houses for a living.

Olson said Toll's request would be considered by Metrolist's board, but she had no timetable for when.

Realtors who are members of Metrolist pay a monthly $15 "maintenance fee" and other fees based on use, Olson said. "It's like a cell-phone plan," she said. "It's a pay-as-you- use-it system."

rebchookj@RockyMountainNews.com or 303-954-5207