Outline
The Colorado Contract to Buy and Sell Real Estate (Residential) form serves as a crucial tool for individuals engaged in residential real estate transactions in the state of Colorado. This form, approved by the Colorado Real Estate Commission, outlines the essential terms and conditions under which a buyer agrees to purchase and a seller agrees to sell a property. Key components of the form include the identification of the parties involved, a detailed description of the property being sold, and the purchase price along with the payment terms. Additionally, the form addresses various inclusions and exclusions related to the property, such as fixtures and personal property, as well as any water rights associated with the property. It also establishes important deadlines for various contingencies, such as loan applications, inspections, and title searches, ensuring that both parties are aware of their responsibilities and timelines. Furthermore, the form emphasizes the significance of earnest money as a demonstration of the buyer's commitment to the transaction. Given the legal implications of this contract, it is strongly advised that both parties consult with legal and tax professionals prior to signing, ensuring that they fully understand their rights and obligations.
Sample - Colorado Contract Real Residential Form
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 1 of 18
The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission. 1
(CBS1-5-19) (Mandatory 7-19)
2
3
THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR 4
OTHER COUNSEL BEFORE SIGNING. 5
6
CONTRACT TO BUY AND SELL REAL ESTATE 7
(RESIDENTIAL) 8
9
Date:
10
AGREEMENT 11
1. AGREEMENT. Buyer agrees to buy and Seller agrees to sell the Property described below on the terms and conditions set 12
forth in this contract (Contract). 13
2. PARTIES AND PROPERTY. 14
2.1. Buyer. (Buyer) will take title
15
to the Property described below as
Joint Tenants Tenants In Common Other . 16
2.2. No Assignability. This Contract IS NOT assignable by Buyer unless otherwise specified in Additional Provisions. 17
2.3. Seller. (Seller) is the current
18
owner of the Property described below. 19
2.4. Property. The Property is the following legally described real estate in the County of , Colorado:
20
21
22
23
24
25
known as No. ,
26
Street Address City State Zip 27
together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant thereto and all interest of 28
Seller in vacated streets and alleys adjacent thereto, except as herein excluded (Property). 29
2.5. Inclusions. The Purchase Price includes the following items (Inclusions): 30
2.5.1. Inclusions – Attached. If attached to the Property on the date of this Contract, the following items are 31
included unless excluded under Exclusions: lighting, heating, plumbing, ventilating and air conditioning units, TV antennas, inside 32
telephone, network and coaxial (cable) wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems, built-33
in kitchen appliances, sprinkler systems and controls, built-in vacuum systems (including accessories) and garage door openers 34
(including _______ remote controls). If checked, the following are owned by the Seller and included (leased items should be listed 35
under Due Diligence Documents):
None Solar Panels Water Softeners Security Systems Satellite Systems 36
(including satellite dishes). If any additional items are attached to the Property after the date of this Contract, such additional items 37
are also included in the Purchase Price. 38
2.5.2. Inclusions – Not Attached. If on the Property, whether attached or not, on the date of this Contract, the 39
following items are included unless excluded under Exclusions: storm windows, storm doors, window and porch shades, awnings, 40
blinds, screens, window coverings and treatments, curtain rods, drapery rods, fireplace inserts, fireplace screens, fireplace grates, 41
heating stoves, storage sheds, carbon monoxide alarms, smoke/fire detectors and all keys. 42
2.5.3. Personal Property – Conveyance. Any personal property must be conveyed at Closing by Seller free and 43
clear of all taxes (except personal property taxes for the year of Closing), liens and encumbrances, except .
44
Conveyance of all personal property will be by bill of sale or other applicable legal instrument. 45
2.5.4. Other Inclusions. The following items, whether fixtures or personal property, are also included in the 46
Purchase Price: 47
48
49
50
51
If the box is checked, Buyer and Seller have concurrently entered into a separate agreement for additional personal 52
property outside of this Contract. 53
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 2 of 18
2.5.5. Parking and Storage Facilities. The use or ownership of the following parking facilities: 54
; and the use or ownership of the following storage facilities: .
55
Note to Buyer: If exact rights to the parking and storage facilities is a concern to Buyer, Buyer should investigate. 56
2.6. Exclusions. The following items are excluded (Exclusions): 57
58
59
60
2.7. Water Rights/Well Rights. 61
2.7.1. Deeded Water Rights. The following legally described water rights: 62
63
64
65
Any deeded water rights will be conveyed by a good and sufficient deed at Closing. 66
2.7.2. Other Rights Relating to Water. The following rights relating to water not included in §§ 2.7.1, 2.7.3 and 67
2.7.4, will be transferred to Buyer at Closing: 68
69
70
71
2.7.3. Well Rights. Seller agrees to supply required information to Buyer about the well. Buyer understands that if 72
the well to be transferred is a “Small Capacity Well” or a “Domestic Exempt Water Well” used for ordinary household purposes, 73
Buyer must, prior to or at Closing, complete a Change in Ownership form for the well. If an existing well has not been registered 74
with the Colorado Division of Water Resources in the Department of Natural Resources (Division), Buyer must complete a 75
registration of existing well form for the well and pay the cost of registration. If no person will be providing a closing service in 76
connection with the transaction, Buyer must file the form with the Division within sixty days after Closing. The Well Permit # is 77
.
78
2.7.4. Water Stock Certificates. The water stock certificates to be transferred at Closing are as follows: 79
80
81
82
2.7.5. Conveyance. If Buyer is to receive any rights to water pursuant to § 2.7.2 (Other Rights Relating to Water), 83
§ 2.7.3 (Well Rights), or § 2.7.4 (Water Stock Certificates), Seller agrees to convey such rights to Buyer by executing the applicable 84
legal instrument at Closing. 85
3. DATES, DEADLINES AND APPLICABILITY. 86
3.1. Dates and Deadlines. 87
Item No.
Reference
Event
Date or Deadline
1
§ 4.3
Alternative Earnest Money Deadline
Title
2
§ 8.1, §
8.4
Record Title Deadline
3
§ 8.2, §
8.4
Record Title Objection Deadline
4
§ 8.3
Off-Record Title Deadline
5
§ 8.3
Off-Record Title Objection Deadline
6
§ 8.5
Title Resolution Deadline
7
§ 8.6
Right of First Refusal Deadline
Owners’ Association
8
§ 7.2
Association Documents Deadline
9
§ 7.4
Association Documents Termination Deadline
Seller’s Disclosures
10
§ 10.1
Seller’s Property Disclosure Deadline
11
§ 10.10
Lead-Based Paint Disclosure Deadline
Loan and Credit
12
§ 5.1
New Loan Application Deadline
13
§ 5.2
New Loan Termination Deadline
14
§ 5.3
Buyer’s Credit Information Deadline
15
§ 5.3
Disapproval of Buyer’s Credit Information Deadline
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 3 of 18
16
§ 5.4
Existing Loan Deadline
17
§ 5.4
Existing Loan Termination Deadline
18
§ 5.4
Loan Transfer Approval Deadline
19
§ 4.7
Seller or Private Financing Deadline
Appraisal
20
§ 6.2
Appraisal Deadline
21
§ 6.2
Appraisal Objection Deadline
22
§ 6.2
Appraisal Resolution Deadline
Survey
23
§ 9.1
New ILC or New Survey Deadline
24
§ 9.3
New ILC or New Survey Objection Deadline
25
§ 9.3
New ILC or New Survey Resolution Deadline
Inspection and Due Diligence
26
§ 10.3
Inspection Objection Deadline
27
§ 10.3
Inspection Termination Deadline
28
§ 10.3
Inspection Resolution Deadline
29
§ 10.5
Property Insurance Termination Deadline
30
§ 10.6
Due Diligence Documents Delivery Deadline
31
§ 10.6
Due Diligence Documents Objection Deadline
32
§ 10.6
Due Diligence Documents Resolution Deadline
33
§ 10.7
Conditional Sale Deadline
34
§ 10.10
Lead-Based Paint Termination Deadline
Closing and Possession
35
§ 12.3
Closing Date
36
§ 17
Possession Date
37
§ 17
Possession Time
38
§ 28
Acceptance Deadline Date
39
§ 28
Acceptance Deadline Time
Note: If FHA or VA loan boxes are checked in § 4.5.3 (Loan Limitations), the Appraisal deadlines DO NOT apply to FHA insured 88
or VA guaranteed loans. 89
3.2. Applicability of Terms. Any box checked in this Contract means the corresponding provision applies. If any deadline 90
blank in § 3.1 (Dates and Deadlines) is left blank or completed with the abbreviation “N/A”, or the word “Deleted,” such deadline 91
is not applicable and the corresponding provision containing the deadline is deleted. If no box is checked in a provision that contains 92
a selection of “None”, such provision means that “None” applies. 93
The abbreviation “MEC” (mutual execution of this Contract) means the date upon which both parties have signed this Contract. 94
4. PURCHASE PRICE AND TERMS. 95
4.1. Price and Terms. The Purchase Price set forth below is payable in U.S. Dollars by Buyer as follows: 96
Item No.
Reference
Item
Amount
Amount
1
§ 4.1
Purchase Price
$
2
§ 4.3
Earnest Money
$
3
§ 4.5
New Loan
$
4
§ 4.6
Assumption Balance
$
5
§ 4.7
Private Financing
$
6
§ 4.7
Seller Financing
$
7
8
9
§ 4.4
Cash at Closing
$
10
TOTAL
$
$
4.2. Seller Concession. At Closing, Seller will credit to Buyer $______________ (Seller Concession). The Seller 97
Concession may be used for any Buyer fee, cost, charge or expenditure to the extent the amount is allowed by the Buyer’s lender 98
and is included in the Closing Statement or Closing Disclosure at Closing. Examples of allowable items to be paid for by the Seller 99
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 4 of 18
Concession include, but are not limited to: Buyer’s closing costs, loan discount points, loan origination fees, prepaid items and any 100
other fee, cost, charge, expense or expenditure. Seller Concession is in addition to any sum Seller has agreed to pay or credit Buyer 101
elsewhere in this Contract. 102
4.3. Earnest Money. The Earnest Money set forth in this Section, in the form of a ______________________, will be 103
payable to and held by ________________________________________ (Earnest Money Holder), in its trust account, on behalf of 104
both Seller and Buyer. The Earnest Money deposit must be tendered, by Buyer, with this Contract unless the parties mutually agree 105
to an Alternative Earnest Money Deadline for its payment. The parties authorize delivery of the Earnest Money deposit to the 106
company conducting the Closing (Closing Company), if any, at or before Closing. In the event Earnest Money Holder has agreed to 107
have interest on Earnest Money deposits transferred to a fund established for the purpose of providing affordable housing to Colorado 108
residents, Seller and Buyer acknowledge and agree that any interest accruing on the Earnest Money deposited with the Earnest 109
Money Holder in this transaction will be transferred to such fund. 110
4.3.1. Alternative Earnest Money Deadline. The deadline for delivering the Earnest Money, if other than at the 111
time of tender of this Contract, is as set forth as the Alternative Earnest Money Deadline. 112
4.3.2. Return of Earnest Money. If Buyer has a Right to Terminate and timely terminates, Buyer is entitled to the 113
return of Earnest Money as provided in this Contract. If this Contract is terminated as set forth in § 25 and, except as provided in 114
§ 24 (Earnest Money Dispute), if the Earnest Money has not already been returned following receipt of a Notice to Terminate, Seller 115
agrees to execute and return to Buyer or Broker working with Buyer, written mutual instructions (e.g., Earnest Money Release form), 116
within three days of Seller’s receipt of such form. 117
4.4. Form of Funds; Time of Payment; Available Funds. 118
4.4.1. Good Funds. All amounts payable by the parties at Closing, including any loan proceeds, Cash at Closing 119
and closing costs, must be in funds that comply with all applicable Colorado laws, including electronic transfer funds, certified 120
check, savings and loan teller’s check and cashier’s check (Good Funds). 121
4.4.2. Time of Payment; Available Funds. All funds, including the Purchase Price to be paid by Buyer, must be 122
paid before or at Closing or as otherwise agreed in writing between the parties to allow disbursement by Closing Company at Closing 123
OR SUCH NONPAYING PARTY WILL BE IN DEFAULT. Buyer represents that Buyer, as of the date of this Contract,
Does 124
Does Not have funds that are immediately verifiable and available in an amount not less than the amount stated as Cash at Closing 125
in § 4.1. 126
4.5. New Loan. 127
4.5.1. Buyer to Pay Loan Costs. Buyer, except as otherwise permitted in § 4.2 (Seller Concession), if applicable, 128
must timely pay Buyer’s loan costs, loan discount points, prepaid items and loan origination fees as required by lender. 129
4.5.2. Buyer May Select Financing. Buyer may pay in cash or select financing appropriate and acceptable to 130
Buyer, including a different loan than initially sought, except as restricted in § 4.5.3 (Loan Limitations) or § 30 (Additional 131
Provisions). 132
4.5.3. Loan Limitations. Buyer may purchase the Property using any of the following types of loans: 133
Conventional FHA VA Bond Other . 134
4.5.4. Loan Estimate – Monthly Payment and Loan Costs. Buyer is advised to review the terms, conditions and 135
costs of Buyer’s New Loan carefully. If Buyer is applying for a residential loan, the lender generally must provide Buyer with a 136
Loan Estimate within three days after Buyer completes a loan application. Buyer also should obtain an estimate of the amount of 137
Buyer’s monthly mortgage payment. 138
4.6. Assumption. Buyer agrees to assume and pay an existing loan in the approximate amount of the Assumption Balance 139
set forth in § 4.1 (Price and Terms), presently payable at $______________ per ________________ including principal and interest 140
presently at the rate of ________% per annum and also including escrow for the following as indicated:
Real Estate Taxes 141
Property Insurance Premium Mortgage Insurance Premium and . 142
Buyer agrees to pay a loan transfer fee not to exceed $_____________. At the time of assumption, the new interest rate will 143
not exceed ________% per annum and the new payment will not exceed $_____________ per ________________ principal and 144
interest, plus escrow, if any. If the actual principal balance of the existing loan at Closing is less than the Assumption Balance, which 145
causes the amount of cash required from Buyer at Closing to be increased by more than $_____________, or if any other terms or 146
provisions of the loan change, Buyer has the Right to Terminate under § 25.1 on or before Closing Date. 147
Seller Will Will Not be released from liability on said loan. If applicable, compliance with the requirements for release 148
from liability will be evidenced by delivery
on or before Loan Transfer Approval Deadline at Closing of an appropriate 149
letter of commitment from lender. Any cost payable for release of liability will be paid by in an amount
150
not to exceed $_____________. 151
4.7. Seller or Private Financing. 152
WARNING: Unless the transaction is exempt, federal and state laws impose licensing, other requirements and restrictions on sellers 153
and private financiers. Contract provisions on financing and financing documents, unless exempt, should be prepared by a licensed 154
Colorado attorney or licensed mortgage loan originator. Brokers should not prepare or advise the parties on the specifics of financing, 155
including whether or not a party is exempt from the law. 156
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 5 of 18
4.7.1. Seller Financing. If Buyer is to pay all or any portion of the Purchase Price with Seller financing, Buyer 157
Seller will deliver the proposed Seller financing documents to the other party on or before _________ days before Seller or 158
Private Financing Deadline. 159
4.7.1.1. Seller May Terminate. If Seller is to provide Seller financing, this Contract is conditional upon 160
Seller determining whether such financing is satisfactory to the Seller, including its payments, interest rate, terms, conditions, cost 161
and compliance with the law. Seller has the Right to Terminate under § 25.1, on or before Seller or Private Financing Deadline, if 162
such Seller financing is not satisfactory to Seller, in Seller’s sole subjective discretion. 163
4.7.2. Buyer May Terminate. If Buyer is to pay all or any portion of the Purchase Price with Seller or private 164
financing, this Contract is conditional upon Buyer determining whether such financing is satisfactory to Buyer, including its 165
availability, payments, interest rate, terms, conditions and cost. Buyer has the Right to Terminate under § 25.1, on or before Seller 166
or Private Financing Deadline, if such Seller or private financing is not satisfactory to Buyer, in Buyer’s sole subjective discretion. 167
TRANSACTION PROVISIONS 168
5. FINANCING CONDITIONS AND OBLIGATIONS. 169
5.1. New Loan Application. If Buyer is to pay all or part of the Purchase Price by obtaining one or more new loans (New 170
Loan), or if an existing loan is not to be released at Closing, Buyer, if required by such lender, must make an application verifiable 171
by such lender, on or before New Loan Application Deadline and exercise reasonable efforts to obtain such loan or approval. 172
5.2. New Loan Review. If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional 173
upon Buyer determining, in Buyer’s sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its 174
availability, payments, interest rate, terms, conditions and cost. This condition is for the sole benefit of Buyer. Buyer has the Right 175
to Terminate under § 25.1, on or before New Loan Termination Deadline, if the New Loan is not satisfactory to Buyer, in Buyer’s 176
sole subjective discretion. Buyer does not have a Right to Terminate based on the New Loan if the objection is based on the Appraised 177
Value (defined below) or the Lender Requirements (defined below). IF SELLER IS NOT IN DEFAULT AND DOES NOT 178
TIMELY RECEIVE BUYER’S WRITTEN NOTICE TO TERMINATE, BUYER’S EARNEST MONEY WILL BE 179
NONREFUNDABLE, except as otherwise provided in this Contract (e.g., Appraisal, Title, Survey). 180
5.3. Credit Information. If an existing loan is not to be released at Closing, this Contract is conditional (for the sole benefit 181
of Seller) upon Seller’s approval of Buyer’s financial ability and creditworthiness, which approval will be in Seller’s sole subjective 182
discretion. Accordingly: (1) Buyer must supply to Seller by Buyer’s Credit Information Deadline, at Buyer’s expense, information 183
and documents (including a current credit report) concerning Buyer’s financial, employment and credit condition; (2) Buyer consents 184
that Seller may verify Buyer’s financial ability and creditworthiness; and (3) any such information and documents received by Seller 185
must be held by Seller in confidence and not released to others except to protect Seller’s interest in this transaction. If the Cash at 186
Closing is less than as set forth in § 4.1 of this Contract, Seller has the Right to Terminate under § 25.1, on or before Closing. If 187
Seller disapproves of Buyer’s financial ability or creditworthiness, in Seller’s sole subjective discretion, Seller has the Right to 188
Terminate under § 25.1, on or before Disapproval of Buyer’s Credit Information Deadline. 189
5.4. Existing Loan Review. If an existing loan is not to be released at Closing, Seller must deliver copies of the loan 190
documents (including note, deed of trust and any modifications) to Buyer by Existing Loan Deadline. For the sole benefit of Buyer, 191
this Contract is conditional upon Buyer’s review and approval of the provisions of such loan documents. Buyer has the Right to 192
Terminate under § 25.1, on or before Existing Loan Termination Deadline, based on any unsatisfactory provision of such loan 193
documents, in Buyer’s sole subjective discretion. If the lender’s approval of a transfer of the Property is required, this Contract is 194
conditional upon Buyer obtaining such approval without change in the terms of such loan, except as set forth in § 4.6. If lender’s 195
approval is not obtained by Loan Transfer Approval Deadline, this Contract will terminate on such deadline. Seller has the Right 196
to Terminate under § 25.1, on or before Closing, in Seller’s sole subjective discretion, if Seller is to be released from liability under 197
such existing loan and Buyer does not obtain such compliance as set forth in § 4.6. 198
6. APPRAISAL PROVISIONS. 199
6.1. Appraisal Definition. An “Appraisal” is an opinion of value prepared by a licensed or certified appraiser, engaged on 200
behalf of Buyer or Buyer’s lender, to determine the Property’s market value (Appraised Value). The Appraisal may also set forth 201
certain lender requirements, replacements, removals or repairs necessary on or to the Property as a condition for the Property to be 202
valued at the Appraised Value. 203
6.2. Appraisal Condition. The applicable appraisal provision set forth below applies to the respective loan type set forth 204
in § 4.5.3, or if a cash transaction (i.e. no financing), § 6.2.1 applies. 205
6.2.1. Conventional/Other. Buyer has the right to obtain an Appraisal. If the Appraised Value is less than the 206
Purchase Price, or if the Appraisal is not received by Buyer on or before Appraisal Deadline Buyer may, on or before Appraisal 207
Objection Deadline: 208
6.2.1.1. Notice to Terminate. Notify Seller in writing, pursuant to § 25.1, that this Contract is terminated; 209
or 210
6.2.1.2. Appraisal Objection. Deliver to Seller a written objection accompanied by
either a copy of the 211
Appraisal or written notice from lender that confirms the Appraised Value is less than the Purchase Price (Lender Verification). 212
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 6 of 18
6.2.1.3. Appraisal Resolution. If an Appraisal Objection is received by Seller, on or before Appraisal 213
Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Appraisal Resolution 214
Deadline, this Contract will terminate on the Appraisal Resolution Deadline, unless Seller receives Buyer’s written withdrawal of 215
the Appraisal Objection before such termination, i.e., on or before expiration of Appraisal Resolution Deadline. 216
6.2.2. FHA. It is expressly agreed that, notwithstanding any other provisions of this Contract, the purchaser (Buyer) 217
shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of Earnest 218
Money deposits or otherwise unless the purchaser (Buyer) has been given, in accordance with HUD/FHA or VA requirements, a 219
written statement issued by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender, 220
setting forth the appraised value of the Property of not less than $______________. The purchaser (Buyer) shall have the privilege 221
and option of proceeding with the consummation of this Contract without regard to the amount of the appraised valuation. The 222
appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will 223
insure. HUD does not warrant the value nor the condition of the Property. The purchaser (Buyer) should satisfy himself/herself that 224
the price and condition of the Property are acceptable. 225
6.2.3. VA. It is expressly agreed that, notwithstanding any other provisions of this Contract, the purchaser (Buyer) 226
shall not incur any penalty by forfeiture of Earnest Money or otherwise or be obligated to complete the purchase of the Property 227
described herein, if the Contract Purchase Price or cost exceeds the reasonable value of the Property established by the Department 228
of Veterans Affairs. The purchaser (Buyer) shall, however, have the privilege and option of proceeding with the consummation of 229
this Contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs. 230
6.3. Lender Property Requirements. If the lender imposes any written requirements, replacements, removals or repairs, 231
including any specified in the Appraisal (Lender Requirements) to be made to the Property (e.g., roof repair, repainting), beyond 232
those matters already agreed to by Seller in this Contract, this Contract terminates on the earlier of three days following Seller’s 233
receipt of the Lender Requirements, or Closing, unless prior to termination: (1) the parties enter into a written agreement to satisfy 234
the Lender Requirements; (2) the Lender Requirements have been completed; or (3) the satisfaction of the Lender Requirements is 235
waived in writing by Buyer. 236
6.4. Cost of Appraisal. Cost of the Appraisal to be obtained after the date of this Contract must be timely paid by
Buyer 237
Seller. The cost of the Appraisal may include any and all fees paid to the appraiser, appraisal management company, lender’s 238
agent or all three. 239
7. OWNERS’ ASSOCIATION. This Section is applicable if the Property is located within a Common Interest Community and 240
subject to the declaration (Association). 241
7.1. Common Interest Community Disclosure. THE PROPERTY IS LOCATED WITHIN A COMMON 242
INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION FOR THE COMMUNITY. THE OWNER OF 243
THE PROPERTY WILL BE REQUIRED TO BE A MEMBER OF THE OWNERS’ ASSOCIATION FOR THE 244
COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS AND RULES AND REGULATIONS OF THE 245
ASSOCIATION. THE DECLARATION, BYLAWS AND RULES AND REGULATIONS WILL IMPOSE FINANCIAL 246
OBLIGATIONS UPON THE OWNER OF THE PROPERTY, INCLUDING AN OBLIGATION TO PAY ASSESSMENTS 247
OF THE ASSOCIATION. IF THE OWNER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD 248
PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO PAY THE DEBT. THE DECLARATION, BYLAWS 249
AND RULES AND REGULATIONS OF THE COMMUNITY MAY PROHIBIT THE OWNER FROM MAKING 250
CHANGES TO THE PROPERTY WITHOUT AN ARCHITECTURAL REVIEW BY THE ASSOCIATION (OR A 251
COMMITTEE OF THE ASSOCIATION) AND THE APPROVAL OF THE ASSOCIATION. PURCHASERS OF 252
PROPERTY WITHIN THE COMMON INTEREST COMMUNITY SHOULD INVESTIGATE THE FINANCIAL 253
OBLIGATIONS OF MEMBERS OF THE ASSOCIATION. PURCHASERS SHOULD CAREFULLY READ THE 254
DECLARATION FOR THE COMMUNITY AND THE BYLAWS AND RULES AND REGULATIONS OF THE 255
ASSOCIATION. 256
7.2. Association Documents to Buyer. Seller is obligated to provide to Buyer the Association Documents (defined below), 257
at Seller’s expense, on or before Association Documents Deadline. Seller authorizes the Association to provide the Association 258
Documents to Buyer, at Seller’s expense. Seller’s obligation to provide the Association Documents is fulfilled upon Buyer’s receipt 259
of the Association Documents, regardless of who provides such documents. 260
7.3. Association Documents. Association documents (Association Documents) consist of the following: 261
7.3.1. All Association declarations, articles of incorporation, bylaws, articles of organization, operating agreements, 262
rules and regulations, party wall agreements and the Association’s responsible governance policies adopted under § 38-33.3-209.5, 263
C.R.S.; 264
7.3.2. Minutes of: (1) the annual owners’ or members’ meeting and (2) any executive boards’ or managers’ meetings; 265
such minutes include those provided under the most current annual disclosure required under § 38-33.3-209.4, C.R.S. (Annual 266
Disclosure) and minutes of meetings, if any, subsequent to the minutes disclosed in the Annual Disclosure. If none of the preceding 267
minutes exist, then the most recent minutes, if any (§§ 7.3.1 and 7.3.2, collectively, Governing Documents); and 268
7.3.3. List of all Association insurance policies as provided in the Association’s last Annual Disclosure, including, 269
but not limited to, property, general liability, association director and officer professional liability and fidelity policies. The list must 270
CBS1-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Page 7 of 18
include the company names, policy limits, policy deductibles, additional named insureds and expiration dates of the policies listed 271
(Association Insurance Documents); 272
7.3.4. A list by unit type of the Association’s assessments, including both regular and special assessments as 273
disclosed in the Association’s last Annual Disclosure; 274
7.3.5. The Association’s most recent financial documents which consist of: (1) the Association’s operating budget 275
for the current fiscal year, (2) the Association’s most recent annual financial statements, including any amounts held in reserve for 276
the fiscal year immediately preceding the Association’s last Annual Disclosure, (3) the results of the Association’s most recent 277
available financial audit or review, (4) list of the fees and charges (regardless of name of title of such fees or charges) that the 278
Association’s community association manager or Association will charge in connection with the Closing including, but not limited 279
to, any fee incident to the issuance of the Association’s statement of assessments (Status Letter), any rush or update fee charged for 280
the Status Letter, any record change fee or ownership record transfer fees (Record Change Fee), fees to access documents, (5) list of 281
all assessments required to be paid in advance, reserves or working capital due at Closing and (6) reserve study, if any (§§ 7.3.4 and 282
7.3.5, collectively, Financial Documents); 283
7.3.6. Any written notice from the Association to Seller of a “construction defect action” under § 38-33.3-303.5, 284
C.R.S. within the past six months and the result of whether the Association approved or disapproved such action (Construction 285
Defect Documents). Nothing in this Section limits the Seller’s obligation to disclose adverse material facts as required under § 10.2 286
(Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition) including any problems or defects in the common 287
elements or limited common elements of the Association property. 288
7.4. Conditional on Buyer’s Review. Buyer has the right to review the Association Documents. Buyer has the Right to 289
Terminate under § 25.1, on or before Association Documents Termination Deadline, based on any unsatisfactory provision in any 290
of the Association Documents, in Buyer’s sole subjective discretion. Should Buyer receive the Association Documents after 291
Association Documents Deadline, Buyer, at Buyer’s option, has the Right to Terminate under § 25.1 by Buyer’s Notice to 292
Terminate received by Seller on or before ten days after Buyer’s receipt of the Association Documents. If Buyer does not receive 293
the Association Documents, or if Buyer’s Notice to Terminate would otherwise be required to be received by Seller after Closing 294
Date, Buyer’s Notice to Terminate must be received by Seller on or before Closing. If Seller does not receive Buyer’s Notice to 295
Terminate within such time, Buyer accepts the provisions of the Association Documents as satisfactory and Buyer waives any Right 296
to Terminate under this provision, notwithstanding the provisions of § 8.6 (Right of First Refusal or Contract Approval). 297
8. TITLE INSURANCE, RECORD TITLE AND OFF-RECORD TITLE. 298
8.1. Evidence of Record Title. 299
8.1.1. Seller Selects Title Insurance Company. If this box is checked, Seller will select the title insurance 300
company to furnish the owner’s title insurance policy at Seller’s expense. On or before Record Title Deadline, Seller must furnish 301
to Buyer, a current commitment for an owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price, 302
or if this box is checked,
an Abstract of Title certified to a current date. Seller will cause the title insurance policy to be issued 303
and delivered to Buyer as soon as practicable at or after Closing. 304
8.1.2. Buyer Selects Title Insurance Company. If this box is checked, Buyer will select the title insurance 305
company to furnish the owner’s title insurance policy at Buyer’s expense. On or before Record Title Deadline, Buyer must furnish to 306
Seller, a current commitment for owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price. 307
If neither box in § 8.1.1 or § 8.1.2 is checked, § 8.1.1 applies. 308
8.1.3. Owner’s Extended Coverage (OEC). The Title Commitment
Will Will Not contain Owner’s 309
Extended Coverage (OEC). If the Title Commitment is to contain OEC, it will commit to delete or insure over the standard 310
exceptions which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4) unrecorded mechanics’ liens, 311
(5) gap period (period between the effective date and time of commitment to the date and time the deed is recorded) and (6) unpaid 312
taxes, assessments and unredeemed tax sales prior to the year of Closing. Any additional premium expense to obtain OEC will be 313
paid by
Buyer Seller One-Half by Buyer and One-Half by Seller Other__________________________. 314
Regardless of whether the Contract requires OEC, the Title Insurance Commitment may not provide OEC or delete or insure over 315
any or all of the standard exceptions for OEC. The Title Insurance Company may require a New Survey or New ILC, defined below, 316
among other requirements for OEC. If the Title Insurance Commitment is not satisfactory to Buyer, Buyer has a right to object under 317
§ 8.5 (Right to Object to Title, Resolution). 318
8.1.4. Title Documents. Title Documents consist of the following: (1) copies of any plats, declarations, covenants, 319
conditions and restrictions burdening the Property and (2) copies of any other documents (or, if illegible, summaries of such 320
documents) listed in the schedule of exceptions (Exceptions) in the Title Commitment furnished to Buyer (collectively, Title 321
Documents). 322
8.1.5. Copies of Title Documents. Buyer must receive, on or before Record Title Deadline, copies of all Title 323
Documents. This requirement pertains only to documents as shown of record in the office of the clerk and recorder in the county 324
where the Property is located. The cost of furnishing copies of the documents required in this Section will be at the expense of the 325
party or parties obligated to pay for the owner’s title insurance policy. 326
8.1.6. Existing Abstracts of Title. Seller must deliver to Buyer copies of any abstracts of title covering all or any 327
portion of the Property (Abstract of Title) in Seller’s possession on or before Record Title Deadline. 328
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8.2. Record Title. Buyer has the right to review and object to the Abstract of Title or Title Commitment and any of the 329
Title Documents as set forth in § 8.5 (Right to Object to Title, Resolution) on or before Record Title Objection Deadline. Buyer’s 330
objection may be based on any unsatisfactory form or content of Title Commitment or Abstract of Title, notwithstanding § 13, or 331
any other unsatisfactory title condition, in Buyer’s sole subjective discretion. If the Abstract of Title, Title Commitment or Title 332
Documents are not received by Buyer on or before the Record Title Deadline, or if there is an endorsement to the Title Commitment 333
that adds a new Exception to title, a copy of the new Exception to title and the modified Title Commitment will be delivered to 334
Buyer. Buyer has until the earlier of Closing or ten days after receipt of such documents by Buyer to review and object to: (1) any 335
required Title Document not timely received by Buyer, (2) any change to the Abstract of Title, Title Commitment or Title Documents, 336
or (3) any endorsement to the Title Commitment. If Seller receives Buyer’s Notice to Terminate or Notice of Title Objection, 337
pursuant to this § 8.2 (Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.5 (Right to Object to 338
Title, Resolution). If Seller has fulfilled all Seller’s obligations, if any, to deliver to Buyer all documents required by § 8.1 (Evidence 339
of Record Title) and Seller does not receive Buyer’s Notice to Terminate or Notice of Title Objection by the applicable deadline 340
specified above, Buyer accepts the condition of title as disclosed by the Abstract of Title, Title Commitment and Title Documents 341
as satisfactory. 342
8.3. Off-Record Title. Seller must deliver to Buyer, on or before Off-Record Title Deadline, true copies of all existing 343
surveys in Seller’s possession pertaining to the Property and must disclose to Buyer all easements, liens (including, without 344
limitation, governmental improvements approved, but not yet installed) or other title matters (including, without limitation, rights of 345
first refusal and options) not shown by public records, of which Seller has actual knowledge (Off-Record Matters). This Section 346
excludes any New ILC or New Survey governed under § 9 (New ILC, New Survey). Buyer has the right to inspect the Property to 347
investigate if any third party has any right in the Property not shown by public records (e.g., unrecorded easement, boundary line 348
discrepancy or water rights). Buyer’s Notice to Terminate or Notice of Title Objection of any unsatisfactory condition (whether 349
disclosed by Seller or revealed by such inspection, notwithstanding § 8.2 (Record Title) and § 13 (Transfer of Title)), in Buyer’s 350
sole subjective discretion, must be received by Seller on or before Off-Record Title Objection Deadline. If an Off-Record Matter 351
is received by Buyer after the Off-Record Title Deadline, Buyer has until the earlier of Closing or ten days after receipt by Buyer 352
to review and object to such Off-Record Matter. If Seller receives Buyer’s Notice to Terminate or Notice of Title Objection pursuant 353
to this § 8.3 (Off-Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.5 (Right to Object to Title, 354
Resolution). If Seller does not receive Buyer’s Notice to Terminate or Notice of Title Objection by the applicable deadline specified 355
above, Buyer accepts title subject to such Off-Record Matters and rights, if any, of third parties not shown by public records of which 356
Buyer has actual knowledge. 357
8.4. Special Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO GENERAL OBLIGATION 358
INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES ON THE TAXABLE 359
PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN SUCH DISTRICTS MAY BE PLACED AT RISK 360
FOR INCREASED MILL LEVIES AND TAX TO SUPPORT THE SERVICING OF SUCH DEBT WHERE 361
CIRCUMSTANCES ARISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH 362
INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYERS SHOULD INVESTIGATE THE 363
SPECIAL TAXING DISTRICTS IN WHICH THE PROPERTY IS LOCATED BY CONTACTING THE COUNTY 364
TREASURER, BY REVIEWING THE CERTIFICATE OF TAXES DUE FOR THE PROPERTY AND BY OBTAINING 365
FURTHER INFORMATION FROM THE BOARD OF COUNTY COMMISSIONERS, THE COUNTY CLERK AND 366
RECORDER, OR THE COUNTY ASSESSOR. 367
A tax certificate from the respective county treasurer listing any special taxing districts that effect the Property (Tax Certificate) 368
must be delivered to Buyer on or before Record Title Deadline. If the Property is located within a special taxing district and such 369
inclusion is unsatisfactory to Buyer, in Buyer’s sole subjective discretion, Buyer may object, on or before Record Title Objection 370
Deadline. If the Tax Certificate shows that the Property is included in a special taxing district and is received by Buyer after the 371
Record Title Deadline, Buyer has until the earlier of Closing or ten days after receipt by Buyer to review and object to the Property’s 372
inclusion in a special taxing district as unsatisfactory to Buyer. 373
8.5. Right to Object to Title, Resolution. Buyer’s right to object, in Buyer’s sole subjective discretion, to any title matters 374
includes those matters set forth in § 8.2 (Record Title), § 8.3 (Off-Record Title), § 8.4 (Special Taxing District) and § 13 (Transfer 375
of Title). If Buyer objects to any title matter, on or before the applicable deadline, Buyer has the following options: 376
8.5.1. Title Objection, Resolution. If Seller receives Buyer’s written notice objecting to any title matter (Notice of 377
Title Objection) on or before the applicable deadline and if Buyer and Seller have not agreed to a written settlement thereof on or 378
before Title Resolution Deadline, this Contract will terminate on the expiration of Title Resolution Deadline, unless Seller receives 379
Buyer’s written withdrawal of Buyer’s Notice of Title Objection (i.e., Buyer’s written notice to waive objection to such items and 380
waives the Right to Terminate for that reason), on or before expiration of Title Resolution Deadline. If either the Record Title 381
Deadline or the Off-Record Title Deadline, or both, are extended pursuant to § 8.2 (Record Title), § 8.3 (Off-Record Title) or § 8.4 382
(Special Taxing Districts), the Title Resolution Deadline also will be automatically extended to the earlier of Closing or fifteen days 383
after Buyer’s receipt of the applicable documents; or 384
8.5.2. Title Objection, Right to Terminate. Buyer may exercise the Right to Terminate under § 25.1, on or before 385
the applicable deadline, based on any title matter unsatisfactory to Buyer, in Buyer’s sole subjective discretion. 386
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8.6. Right of First Refusal or Contract Approval. If there is a right of first refusal on the Property or a right to approve 387
this Contract, Seller must promptly submit this Contract according to the terms and conditions of such right. If the holder of the right 388
of first refusal exercises such right or the holder of a right to approve disapproves this Contract, this Contract will terminate. If the 389
right of first refusal is waived explicitly or expires, or the Contract is approved, this Contract will remain in full force and effect. 390
Seller must promptly notify Buyer in writing of the foregoing. If expiration or waiver of the right of first refusal or approval of this 391
Contract has not occurred on or before Right of First Refusal Deadline, this Contract will then terminate. 392
8.7. Title Advisory. The Title Documents affect the title, ownership and use of the Property and should be reviewed 393
carefully. Additionally, other matters not reflected in the Title Documents may affect the title, ownership and use of the Property, 394
including, without limitation, boundary lines and encroachments, set-back requirements, area, zoning, building code violations, 395
unrecorded easements and claims of easements, leases and other unrecorded agreements, water on or under the Property and various 396
laws and governmental regulations concerning land use, development and environmental matters. 397
8.7.1. OIL, GAS, WATER AND MINERAL DISCLOSURE. THE SURFACE ESTATE OF THE 398
PROPERTY MAY BE OWNED SEPARATELY FROM THE UNDERLYING MINERAL ESTATE AND TRANSFER OF 399
THE SURFACE ESTATE MAY NOT NECESSARILY INCLUDE TRANSFER OF THE MINERAL ESTATE OR WATER 400
RIGHTS. THIRD PARTIES MAY OWN OR LEASE INTERESTS IN OIL, GAS, OTHER MINERALS, GEOTHERMAL 401
ENERGY OR WATER ON OR UNDER THE SURFACE OF THE PROPERTY, WHICH INTERESTS MAY GIVE THEM 402
RIGHTS TO ENTER AND USE THE SURFACE OF THE PROPERTY TO ACCESS THE MINERAL ESTATE, OIL, 403
GAS OR WATER. 404
8.7.2. SURFACE USE AGREEMENT. THE USE OF THE SURFACE ESTATE OF THE PROPERTY TO 405
ACCESS THE OIL, GAS OR MINERALS MAY BE GOVERNED BY A SURFACE USE AGREEMENT, A 406
MEMORANDUM OR OTHER NOTICE OF WHICH MAY BE RECORDED WITH THE COUNTY CLERK AND 407
RECORDER. 408
8.7.3. OIL AND GAS ACTIVITY. OIL AND GAS ACTIVITY THAT MAY OCCUR ON OR ADJACENT 409
TO THE PROPERTY MAY INCLUDE, BUT IS NOT LIMITED TO, SURVEYING, DRILLING, WELL COMPLETION 410
OPERATIONS, STORAGE, OIL AND GAS, OR PRODUCTION FACILITIES, PRODUCING WELLS, REWORKING 411
OF CURRENT WELLS AND GAS GATHERING AND PROCESSING FACILITIES. 412
8.7.4. ADDITIONAL INFORMATION. BUYER IS ENCOURAGED TO SEEK ADDITIONAL 413
INFORMATION REGARDING OIL AND GAS ACTIVITY ON OR ADJACENT TO THE PROPERTY, INCLUDING 414
DRILLING PERMIT APPLICATIONS. THIS INFORMATION MAY BE AVAILABLE FROM THE COLORADO OIL 415
AND GAS CONSERVATION COMMISSION. 416
8.7.5. Title Insurance Exclusions. Matters set forth in this Section and others, may be excepted, excluded from, or 417
not covered by the owner’s title insurance policy. 418
8.8. Consult an Attorney. Buyer is advised to timely consult legal counsel with respect to all such matters as there are 419
strict time limits provided in this Contract (e.g., Record Title Objection Deadline and Off-Record Title Objection Deadline). 420
9. NEW ILC, NEW SURVEY. 421
9.1. New ILC or New Survey. If the box is checked, a: 1)
New Improvement Location Certificate (New ILC); or, 422
2)
New Survey in the form of ___________________________________________; is required and the following will apply: 423
9.1.1. Ordering of New ILC or New Survey. Seller Buyer will order the New ILC or New Survey. The 424
New ILC or New Survey may also be a previous ILC or survey that is in the above-required form, certified and updated as of a date 425
after the date of this Contract. 426
9.1.2. Payment for New ILC or New Survey. The cost of the New ILC or New Survey will be paid, on or before 427
Closing, by: Seller Buyer or: 428
429
430
9.1.3. Delivery of New ILC or New Survey. Buyer, Seller, the issuer of the Title Commitment (or the provider of 431
the opinion of title if an Abstract of Title) and _____________________ will receive a New ILC or New Survey on or before New 432
ILC or New Survey Deadline. 433
9.1.4. Certification of New ILC or New Survey. The New ILC or New Survey will be certified by the surveyor to 434
all those who are to receive the New ILC or New Survey. 435
9.2. Buyer’s Right to Waive or Change New ILC or New Survey Selection. Buyer may select a New ILC or New 436
Survey different than initially specified in this Contract if there is no additional cost to Seller or change to the New ILC or New 437
Survey Objection Deadline. Buyer may, in Buyer’s sole subjective discretion, waive a New ILC or New Survey if done prior to 438
Seller incurring any cost for the same. 439
9.3. New ILC or New Survey Objection. Buyer has the right to review and object to the New ILC or New Survey. If the 440
New ILC or New Survey is not timely received by Buyer or is unsatisfactory to Buyer, in Buyer’s sole subjective discretion, Buyer 441
may, on or before New ILC or New Survey Objection Deadline, notwithstanding § 8.3 or § 13: 442
9.3.1. Notice to Terminate. Notify Seller in writing, pursuant to § 25.1, that this Contract is terminated; or 443
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9.3.2. New ILC or New Survey Objection. Deliver to Seller a written description of any matter that was to be 444
shown or is shown in the New ILC or New Survey that is unsatisfactory and that Buyer requires Seller to correct. 445
9.3.3. New ILC or New Survey Resolution. If a New ILC or New Survey Objection is received by Seller, on or 446
before New ILC or New Survey Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on 447
or before New ILC or New Survey Resolution Deadline, this Contract will terminate on expiration of the New ILC or New 448
Survey Resolution Deadline, unless Seller receives Buyer’s written withdrawal of the New ILC or New Survey Objection before 449
such termination, i.e., on or before expiration of New ILC or New Survey Resolution Deadline. 450
DISCLOSURE, INSPECTION AND DUE DILIGENCE
451
10. PROPERTY DISCLOSURE, INSPECTION, INDEMNITY, INSURABILITY, DUE DILIGENCE AND SOURCE OF 452
WATER. 453
10.1. Seller’s Property Disclosure. On or before Seller’s Property Disclosure Deadline, Seller agrees to deliver to Buyer 454
the most current version of the applicable Colorado Real Estate Commission’s Seller’s Property Disclosure form completed by Seller 455
to Seller’s actual knowledge and current as of the date of this Contract. 456
10.2. Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition. Seller must disclose to Buyer 457
any adverse material facts actually known by Seller as of the date of this Contract. Seller agrees that disclosure of adverse material 458
facts will be in writing. In the event Seller discovers an adverse material fact after the date of this Contract, Seller must timely 459
disclose such adverse fact to Buyer. Buyer has the Right to Terminate based on the Seller’s new disclosure on the earlier of Closing 460
or five days after Buyer’s receipt of the new disclosure. Except as otherwise provided in this Contract, Buyer acknowledges that 461
Seller is conveying the Property to Buyer in an “As Is” condition, “Where Is” and “With All Faults.” 462
10.3. Inspection. Unless otherwise provided in this Contract, Buyer, acting in good faith, has the right to have inspections 463
(by one or more third parties, personally or both) of the Property and Inclusions (Inspection), at Buyer’s expense. If (1) the physical 464
condition of the Property, including, but not limited to, the roof, walls, structural integrity of the Property, the electrical, plumbing, 465
HVAC and other mechanical systems of the Property, (2) the physical condition of the Inclusions, (3) service to the Property 466
(including utilities and communication services), systems and components of the Property (e.g., heating and plumbing), (4) any 467
proposed or existing transportation project, road, street or highway, or (5) any other activity, odor or noise (whether on or off the 468
Property) and its effect or expected effect on the Property or its occupants is unsatisfactory, in Buyer’s sole subjective discretion, 469
Buyer may: 470
10.3.1. Inspection Objection. On or before the Inspection Objection Deadline, deliver to Seller a written 471
description of any unsatisfactory condition that Buyer requires Seller to correct; or 472
10.3.2. Terminate. On or before the Inspection Termination Deadline, notify Seller in writing, pursuant to § 25.1, 473
that this Contract is terminated due to any unsatisfactory condition. Inspection Termination Deadline will be on the earlier of 474
Inspection Resolution Deadline or the date specified in § 3.1 for Inspection Termination Deadline. 475
10.3.3. Inspection Resolution. If an Inspection Objection is received by Seller, on or before Inspection Objection 476
Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline, 477
this Contract will terminate on Inspection Resolution Deadline unless Seller receives Buyer’s written withdrawal of the Inspection 478
Objection before such termination, i.e., on or before expiration of Inspection Resolution Deadline. 479
10.4. Damage, Liens and Indemnity. Buyer, except as otherwise provided in this Contract or other written agreement 480
between the parties, is responsible for payment for all inspections, tests, surveys, engineering reports, or other reports performed at 481
Buyer’s request (Work) and must pay for any damage that occurs to the Property and Inclusions as a result of such Work. Buyer 482
must not permit claims or liens of any kind against the Property for Work performed on the Property. Buyer agrees to indemnify, 483
protect and hold Seller harmless from and against any liability, damage, cost or expense incurred by Seller and caused by any such 484
Work, claim, or lien. This indemnity includes Seller’s right to recover all costs and expenses incurred by Seller to defend against 485
any such liability, damage, cost or expense, or to enforce this Section, including Seller’s reasonable attorney fees, legal fees and 486
expenses. The provisions of this Section survive the termination of this Contract. This § 10.4 does not apply to items performed 487
pursuant to an Inspection Resolution. 488
10.5. Insurability. Buyer has the right to review and object to the availability, terms and conditions of and premium for 489
property insurance (Property Insurance). Buyer has the Right to Terminate under § 25.1, on or before Property Insurance 490
Termination Deadline, based on any unsatisfactory provision of the Property Insurance, in Buyer’s sole subjective discretion. 491
10.6. Due Diligence. 492
10.6.1. Due Diligence Documents. If the respective box is checked, Seller agrees to deliver copies of the following 493
documents and information pertaining to the Property (Due Diligence Documents) to Buyer on or before Due Diligence Documents 494
Delivery Deadline: 495
10.6.1.1. All current leases, including any amendments or other occupancy agreements, pertaining to the 496
Property. Those leases or other occupancy agreements pertaining to the Property that survive Closing are as follows (Leases): 497
498
499
Form Information
| Fact Name | Details |
|---|---|
| Approval | The printed portions of this form have been approved by the Colorado Real Estate Commission. |
| Legal Consequences | This form has important legal consequences. Parties should consult legal and tax counsel before signing. |
| Parties Involved | The contract outlines the Buyer and Seller, who agree to the terms of the sale of the property. |
| Property Description | The form requires a detailed legal description of the property being sold, including address and county. |
| Inclusions | Items included in the sale are specified, such as appliances and fixtures attached to the property. |
| Exclusions | The form allows for specific items to be excluded from the sale, which must be clearly listed. |
| Water Rights | Details regarding any deeded water rights or well rights associated with the property are included. |
| Governing Laws | This contract is governed by Colorado state laws, ensuring compliance with local regulations. |
Detailed Guide for Filling Out Colorado Contract Real Residential
Filling out the Colorado Contract to Buy and Sell Real Estate (Residential) form requires careful attention to detail. Each section must be completed accurately to ensure a smooth transaction process. Below are the steps to help guide you through the form.
- Enter the date at the top of the form.
- In the "AGREEMENT" section, confirm that the Buyer agrees to buy and the Seller agrees to sell the property.
- Provide the names of the Buyer and Seller in the appropriate fields.
- Specify how the Buyer will take title (e.g., Joint Tenants, Tenants In Common).
- Fill in the legal description of the property, including county, street address, city, state, and zip code.
- List any inclusions that are part of the sale, such as appliances or fixtures, in the designated section.
- Identify any exclusions that are not included in the sale.
- Complete the section regarding water rights and well rights, if applicable.
- Fill out the "DATES, DEADLINES AND APPLICABILITY" section with relevant dates for each item listed.
- In the "PURCHASE PRICE AND TERMS" section, enter the purchase price and detail the payment terms.
- Specify any seller concessions that may apply.
- Indicate the form of earnest money and the holder of that money.
- Complete any sections related to financing, including loan types and terms.
- Review the appraisal provisions and fill in any necessary details.
- Ensure all parties sign and date the form where indicated.
After completing the form, review it for accuracy. It's a good idea to consult with a legal or real estate professional to ensure everything is in order before submitting it. This will help avoid any potential issues down the line.
Obtain Answers on Colorado Contract Real Residential
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What is the Colorado Contract to Buy and Sell Real Estate (Residential)?
The Colorado Contract to Buy and Sell Real Estate (Residential) is a legal document used in real estate transactions within Colorado. It outlines the agreement between a buyer and a seller regarding the sale of a residential property. This contract includes essential details such as the purchase price, property description, and any conditions or contingencies that must be met before the sale is finalized.
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Who should review the contract before signing?
It is highly recommended that both the buyer and seller consult with legal and tax professionals before signing the contract. This ensures that all parties understand their rights, obligations, and any potential legal consequences associated with the agreement.
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What are the key components of the contract?
The contract includes several important sections, such as:
- Agreement between buyer and seller
- Property details and legal description
- Purchase price and payment terms
- Inclusions and exclusions (items included or not included in the sale)
- Inspection and due diligence provisions
- Closing date and possession details
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What are inclusions and exclusions in the contract?
Inclusions refer to items that are included in the sale of the property, such as appliances, fixtures, and other items attached to the home. Exclusions are items that the seller intends to keep and are not part of the sale. It's crucial for buyers to clarify these details to avoid misunderstandings.
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What is earnest money, and why is it important?
Earnest money is a deposit made by the buyer to demonstrate their commitment to purchasing the property. This amount is held in a trust account and is typically applied to the purchase price at closing. If the buyer fails to fulfill the contract terms, they may forfeit the earnest money. Conversely, if the seller does not meet their obligations, the buyer may be entitled to a refund.
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What happens if the buyer needs to terminate the contract?
If the buyer has a valid reason to terminate the contract, such as failing to secure financing or unsatisfactory inspection results, they can do so within specified timeframes outlined in the contract. The buyer may be entitled to a refund of their earnest money if they terminate within these guidelines.
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What are the deadlines included in the contract?
The contract includes various deadlines for important actions, such as securing financing, completing inspections, and finalizing the closing date. These deadlines are critical for ensuring that both parties meet their obligations in a timely manner. Missing a deadline may impact the buyer's or seller's rights under the contract.
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What should buyers know about financing options?
Buyers have the option to pay in cash or secure financing through various loan types, including conventional, FHA, or VA loans. It's essential for buyers to understand the terms of their financing, including interest rates, monthly payments, and any associated costs. Buyers should also be aware of the financing conditions outlined in the contract.
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What is the appraisal provision in the contract?
The appraisal provision allows the buyer to obtain an appraisal of the property to determine its market value. If the appraised value is lower than the purchase price, the buyer may have the right to terminate the contract or negotiate a lower price. This provision protects the buyer's financial interests.
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Can the contract be assigned to another party?
Generally, the contract is not assignable by the buyer unless specifically stated in the additional provisions. This means that the buyer cannot transfer their rights and obligations under the contract to another party without the seller's consent.
Common mistakes
Filling out the Colorado Contract Real Residential form can be a daunting task, and mistakes can lead to significant complications in real estate transactions. One common error is failing to specify the type of ownership in the "Buyer" section. Buyers often overlook the option to select "Joint Tenants," "Tenants In Common," or "Other," which can have long-term implications for property rights and inheritance.
Another frequent mistake involves the "Inclusions" and "Exclusions" sections. Buyers may neglect to list items that they expect to be included in the sale, such as appliances or fixtures. Conversely, sellers might forget to specify exclusions, leading to misunderstandings at closing. Clarity in these sections is essential to avoid disputes later on.
Many individuals also fail to pay close attention to the "Dates and Deadlines" section. Missing a deadline can result in the loss of earnest money or the inability to terminate the contract if issues arise. It is crucial to ensure that all dates are filled in correctly and that both parties understand their implications.
Another mistake occurs when buyers do not adequately address financing terms. Buyers may leave the "New Loan" section incomplete or fail to provide necessary documentation, which can jeopardize their ability to secure financing. It is vital to provide accurate information and to understand the implications of different loan types.
Some individuals mistakenly assume that the contract is assignable by default. The "No Assignability" clause clearly states that the contract is not assignable unless specified otherwise. Ignoring this can lead to complications if the buyer wishes to transfer their interest in the property.
Inaccuracies in the "Purchase Price and Terms" section are also common. Buyers sometimes miscalculate or misrepresent the earnest money or the total purchase price. This can create confusion and lead to disputes during the closing process.
Buyers and sellers often overlook the importance of clearly defining "Water Rights" and "Well Rights." Failure to address these rights can result in legal issues down the line, particularly in areas where water access is critical. Understanding and documenting these rights is essential for a smooth transaction.
Finally, many people neglect to consult with legal or tax professionals before signing the contract. The form explicitly advises parties to seek counsel, yet many proceed without this vital step. Legal guidance can help identify potential pitfalls and ensure that all aspects of the contract are understood, ultimately protecting the interests of both parties.
Documents used along the form
When engaging in real estate transactions in Colorado, several forms and documents often accompany the Colorado Contract to Buy and Sell Real Estate (Residential) form. Each document serves a specific purpose and helps facilitate a smooth transaction. Understanding these documents can enhance your experience and ensure all legal requirements are met.
- Seller's Property Disclosure Form: This document requires the seller to disclose any known issues or defects with the property. It is designed to protect the buyer by ensuring they are fully informed about the property's condition before making a purchase.
- Lead-Based Paint Disclosure: Required for homes built before 1978, this form informs buyers of any potential lead-based paint hazards. It mandates that sellers disclose any known lead-based paint or lead-based paint hazards in the home.
- Earnest Money Agreement: This document outlines the terms regarding the earnest money deposit made by the buyer. It specifies the amount, the holder of the funds, and the conditions under which the money may be returned or forfeited.
- Title Commitment: This is a document provided by a title company that outlines the terms of the title insurance policy. It details any liens, encumbrances, or other issues that may affect the property title, ensuring that the buyer receives a clear title at closing.
- Closing Disclosure: This form provides a detailed account of the final terms of the loan and the closing costs associated with the transaction. It must be provided to the buyer at least three days before closing, allowing them to review and understand all financial aspects before finalizing the purchase.
These forms and documents play a crucial role in the home buying process in Colorado. Familiarity with each can help buyers and sellers navigate their transactions with confidence and clarity. Always consider seeking professional advice when dealing with real estate forms to ensure compliance and protect your interests.
Similar forms
- Residential Lease Agreement: This document outlines the terms and conditions under which a landlord rents property to a tenant. Like the Colorado Contract Real Residential form, it specifies the parties involved, property details, and financial obligations, including rent and security deposits.
- Purchase Agreement: Similar to the Colorado form, a purchase agreement is a legally binding contract that details the terms of a sale, including the property description, purchase price, and closing date. Both documents require mutual agreement between buyer and seller.
- Listing Agreement: This document establishes the relationship between a seller and a real estate agent. It shares similarities with the Colorado form in that it includes terms for the sale of property and outlines the responsibilities of each party during the transaction.
- Real Estate Option Agreement: This agreement grants a buyer the right to purchase a property within a specified timeframe. Like the Colorado form, it sets forth terms and conditions, including price and property details, while also addressing the rights and obligations of both parties.
- Escrow Agreement: This document is used to outline the terms under which an escrow agent holds funds or documents until specific conditions are met. It parallels the Colorado form in its focus on the transaction process, detailing how funds will be managed until closing.
Dos and Don'ts
When filling out the Colorado Contract Real Residential form, it is crucial to approach the task with care and attention to detail. Below is a list of things to keep in mind, both what to do and what to avoid.
- Do read the entire form thoroughly before filling it out to understand all terms and conditions.
- Do provide accurate and complete information regarding the property and parties involved.
- Do consult with a legal or real estate professional if you have questions about any section of the form.
- Do ensure that all dates and deadlines are filled in correctly to avoid complications later.
- Don't leave any sections blank unless specifically instructed to do so, as this can lead to misunderstandings.
- Don't rush through the process; taking your time can help prevent costly mistakes.
Misconceptions
- Misconception 1: The Colorado Contract Real Residential form is a standard template that can be used for any real estate transaction.
- Misconception 2: Signing this form is a guarantee that the sale will go through.
- Misconception 3: The buyer can freely assign the contract to another party.
- Misconception 4: All personal property on the premises is included in the sale.
- Misconception 5: The earnest money deposit is fully refundable under all circumstances.
This form is specifically designed for residential transactions in Colorado. It includes provisions and terms that may not apply to commercial properties or other types of real estate deals.
While this contract outlines the terms of the sale, it does not guarantee that the transaction will be completed. Various conditions must be met, and either party may have the right to terminate the contract under specific circumstances.
The form explicitly states that the contract is not assignable by the buyer unless specified in the Additional Provisions. This means that the buyer cannot transfer their rights to another party without permission.
Only items specifically listed as inclusions in the contract are included in the sale. Items that are not attached or explicitly mentioned may not be included, so buyers should carefully review these sections.
The return of the earnest money deposit is subject to the terms outlined in the contract. If the buyer terminates the contract for reasons not covered by the agreement, they may forfeit their earnest money.
Key takeaways
The Colorado Contract Real Residential form is a legal document approved by the Colorado Real Estate Commission, ensuring it meets necessary regulatory standards.
Before signing the contract, both parties should seek advice from legal and tax professionals, as the form carries significant legal implications.
Buyers and sellers must clearly identify themselves and the property involved, including the address and any relevant legal descriptions.
The contract specifies what items are included in the sale, such as appliances and fixtures, and allows for exclusions if necessary.
Earnest money is required to demonstrate the buyer's commitment, and specific deadlines for payment must be adhered to in the contract.
Buyers should be aware of their rights regarding financing, including the ability to terminate the contract if financing terms are not satisfactory.
The contract outlines various deadlines related to inspections, appraisals, and other due diligence requirements that both parties must follow.
In the event of any disputes or termination of the contract, clear procedures are in place for the return of earnest money and other obligations.