A Bill for an Act
Page 1, Line 101Concerning an exception to the statutory limit on the
Page 1, Line 102amount that a landlord may require a tenant to
Page 1, Line 103provide as a security deposit in cases where the
Page 1, Line 104landlord and tenant have executed a post-closing
Page 1, Line 105occupancy agreement.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Current law prohibits a landlord from requiring a tenant to submit a security deposit in an amount that exceeds 2 monthly rent payments. The bill creates an exception to this prohibition for cases in which a buyer and a seller of residential real property have executed a post-closing occupancy agreement in connection with the sale. The exception takes effect November 1, 2026.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, amend 38-12-102.5
Page 2, Line 3as follows:
Page 2, Line 438-12-102.5. Security deposits - maximum amount - exception
Page 2, Line 5for post-closing occupancy agreements - rules.
Page 2, Line 6(1)
On and after August 7, 2023Page 2, Line 7subsection (2) of this section, a landlord shall not require a tenant to
Page 2, Line 8submit a security deposit in an amount that exceeds the amount of two
Page 2, Line 9monthly rent payments under the rental agreement.
Page 2, Line 10(2) On and after November 1, 2026, subsection (1) of this
Page 2, Line 11section does not apply if the landlord and tenant have executed
Page 2, Line 12a post-closing occupancy agreement pursuant to a purchase
Page 2, Line 13contract whereby the landlord purchased the residence from
Page 2, Line 14the tenant.
Page 2, Line 15SECTION 2. Act subject to petition - effective date. This act
Page 2, Line 16takes effect at 12:01 a.m. on the day following the expiration of the
Page 2, Line 17ninety-day period after final adjournment of the general assembly (August
Page 2, Line 1812, 2026, if adjournment sine die is on May 13, 2026); except that, if a
Page 2, Line 19referendum petition is filed pursuant to section 1 (3) of article V of the
Page 2, Line 20state constitution against this act or an item, section, or part of this act
Page 2, Line 21within such period, then the act, item, section, or part will not take effect
Page 2, Line 22unless approved by the people at the general election to be held in
Page 3, Line 1November 2026 and, in such case, will take effect on the date of the
Page 3, Line 2official declaration of the vote thereon by the governor.