Colorado Forms and Contracts Latest Version 100% Correct

Colorado Forms and Contracts Latest Version 100% Correct Rule F Purpose of rule F is to assist brokers in complying Conway Bogue decision Deals with forms If a form is approved, brokers must use it Certain clauses specified by rule may be omitted in the printing of the form , primary financing methods that do not apply Contract forms generated by computer ( Rule F) Reproduce language exactly as approved Have software security to prevent language from being inadvertently changed or deleted Any language added in the blanks, such as those listing inclusions karma must be differentiator it from the approved language. It can be italicized, bold, different type size, or font, as long as a reader can tell it is different from the approved language Rule F does not applied to the following Contracts for new homes with warranties Contracts prepared by subdivision developers Mediation in all approved Contract forms The parties agreed to submit any dispute about the contract to mediation for up to 30 days Mediation is not binding. A resolution signed by the parties will be binding The parties jointly agree to a mediator The parties will split the cost of mediation . this is not negotiable If the dispute is not resolved, either party may seek litigation or arbitration Transaction brokers owe DCAR Disclosure Confidential Accounting Reasonable Care Acts as a facilitator or referee, must still keep confidential PTM ( ,Price, terms, and motivation ) Obligations of the broker associate Meet the terms of all representation agreements and the uniform duties Maintain confidentiality of all parties being represented at all times Be knowledgeable of contract forms and law as well as realestate law Work with other firms to make sure contracts close All contracts belong to the brokerage firm The parties are the customer ( Seller, buyer, or tenant) and the brokerage firm Brokerage firms or customers attorneys may drafty transaction specific listing agreement Brokerage firm's attorneys may draft an addendum to be used by all brokers in the firm for all listings Expressed written contract Required for all realestate transactions done by brokerage Brokerage relationship Only the designated broker, not be employing broker, has the brokerage relationship with the consumer Single party listing ( CP-13) A broker who takes a single party listing should did the following Make the listing specific to the buyer Remove the holdover clause Seller's property disclosure The seller fills out and signs the form( the broker does not) The seller certifies to truth of statement based on the seller's current actual knowledge The seller must disclose material facts known by them, even if selling "as is" . Disclosure of material facts is not optional If the seller declines to complete the disclosure form, the broker should inform the seller that the buyer will most likely request the disclosure as part of the contracted by buy and sell Square footage disclosure Required to be supplied by the listing broker in a timely manner, if square footage of a residential property is given If the listing broker measures the property, indicate which method was used If another source of square footage is used, name the source The listing broker may not use an unreliable source Square footage is for marketing not for valuation or financing Agreement to amend/extend contract with broker This form is used to modify/change/an existing listing contract The broker must amend or extend a listing or buyer representation agreement before the termination date Change of status form Used when an agent will double and a transaction and become a transaction broker for both parties This is not a contractor new agreement Stages of a Real Estate purchase contract Study page 26 Parties of a contract to buy and sell realestate The parties are the buyer and the seller The brokerage firm is not a party to this contract The brokerage firm's attorney may not draft a general or specific contract form for a buyer or seller Brokers may help the buyer and/or seller draft addendum to reflect negotiated items Brokers or brokerage firms may not draft and attach any addendum that was not negotiated between the buyer and the seller unless the addendum is created by : The principal to the transaction An attorney representing the principal or the brokerage firm Rule F-3 violation Brokers in firms are in violation of rule F - 3 if they attach a non negotiated addenda to a contract to buy and sell real estate Inclusions and exclusions Fixtures must be excluded Personal property must be included Inclusions would be listed in a different font in the contract Appraisal provision The cost of the appraisal is negotiated Common interests community ( CIC) Documents are used for communities with and the authority to Levy mandatory assessments for the maintenance of common elements Create statutory liens for OA( owner Association) dues and assessments Contract process for common interests community documents The seller must provide the documents. Once the buyer receives them, the sellers have met their obligation , no matter how the buyer obtained the documents If the buyer finds the conditions unacceptable, the buyer may terminate the contract by written notice prior to the CIC documents objection deadline The seller has no ability or obligation to cure CIC document items that the buyer is not satisfied with by any deadline Title advisory This warns that 3rd parties may own rights in minerals or other interests, giving them the right to enter and use the property Inspection objection and resolution deadline The buyer has until the objection deadline to inspect and said any request to the seller The parties must resolve inspection issues before the resolution deadline If not the contact will terminate on the resolution deadline Default remedies Specific performance- Seller may keep the earnest money, Sue for damages, or Sue to force the buyer to buy Liquidated damages - The default seller's remedy is limited to keeping the earnest money Earnest money upon termination The broker must return the earnest money immediately unless there is an earnest money dispute Notice, delivery, and choice of law Allows for E- signatures; however, it States, original signatures shall be provided upon request of any party Counterproposal Terminate the offer and creates a new one Counter proposal must be attached to the original offer offered ( usually the seller) does not sign the offer, only the counteroffer The seller would be obligated to withdraw a counter offer in order to accept another offer from a different party Inspection notice This form carries out the steps in the inspection section Does not change the objection or resolution deadline ; The broker would need to use and a man that/extend contract form Agreement to Amend / Extend Contract Used to modify the contract to buy and sell only Is to extend our change provisions ,such as closing date Must be signed by all parties before the deadline Licensee buyout addendum ( Commission position statement CP - 23 ) States the following : The broker/buyer is a licencee and can fund the purchase The broker/buyer may make a profit on the resale The broker/buyer will be obligated to pay losses or expenses Does not require the seller to pay any costs or commission fees to the buyer/broker if the buyout closes