Real Estate Contracts 101: The basics

In Colorado, all licensed real estate brokers must use forms approved by the Colorado Real Estate Commission or have an attorney draft a form specific to each transaction.

The most common form is the state-approved contract to buy and sell real estate. This document allows the buyer and seller to come to an agreement on price and terms before earnest money is deposited or any money is spent on inspections or loan applications.

The most common contingencies in the contract – physical inspection of the property, title review, appraisal review and loan approval – are described below. Sellers should be aware that a buyer generally is able to terminate the contract without forfeiture of his earnest money if the buyer is not satisfied with the resolution of the contingencies. To see rest of the article click here.

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