Colorado Real Estate Contract For Land Explained

Why use Colorado real estate contract for sale by owner?

What is a real estate contract?

A real estate contract is a legal document that outlines the rights and responsibilities of both parties involved in the transaction. It protects both buyers and sellers by clearly defining the terms of the sale. It helps to ensure all parties clearly understand their obligations, eliminating potential disputes or misunderstandings.

In addition to outlining the terms of the sale, a contract also details important details such as purchase price, closing date, and other conditions that must be met before closing. This ensures that all parties are aware of the terms and conditions of the agreement, making it easier for them to negotiate and finalize the deal.

Why use the Colorado DORA real estate forms?

There are a number of benefits to using these template forms that are available to the public. The free Colorado purchase agreement template covers the most important clauses for selling land by owner. The Division of Real Estate forms are also widely used, which means they are understood by others in the industry. Other parties to the transaction such as lenders, title companies, and real estate brokers use these forms. These standard contracts and forms are also balanced between the rights of buyer and seller.

• Free to the public
• Cover most important clauses
• Protect all parties involved in the sale
• Understood by the real estate industry

However, the forms don't address every potential situation you may encounter when selling Colorado land. If your sale will have unique issues, you may want to hire a real estate attorney to draft the contract for you.

Where to find Colorado real estate commission contracts

You can download the Division of Real Estate's template for free. Select the Sales Contracts dropdown menu. Then select the Contract to Buy and Sell, Land. This will take you to a PDF of the document that you can download.

The Colorado Division of Real Estate is a division of the Department of Regulatory Agencies (DORA). They make many other useful documents available to the public including a Source of Water Addendum, disclosure documents, and deeds.

Contract to buy and sell land Colorado example

A contract to buy and sell real estate is a legal agreement between the buyer and the seller of a property regarding the terms of the sale. Here are some of the most important clauses in the Colorado Contract to Buy and Sell Land.

• Buyer - the buyer has to choose how they will take title to the property. The options are joint tenants, tenants in common, or other. The default in Colorado is tenancy in common.
• Seller - the seller name should be written exactly as indicated on the deed to the property.
• Property - Insert the legal description and address if available. To find the legal description, reference the deed to the property or a land survey if available. You may also find a legal description on your property tax bill.
• Inclusions - List any fixtures or personal property being sold with the property.
• Water Rights, Well Rights, Water, and Sewer Taps - the Colorado contract has extensive options for describing the water rights conveyed with the land.
• Dates and Deadlines - the section allows the parties to specify deadlines for contract milestones such as seller disclosures, appraisal deadline, and closing date. Note that not all of these will be applicable to every transaction.
• Purchase and terms - this section not only includes the purchase price but also the amount of earnest money, the loan amount if any, and any seller financing provided.
• Title insurance and Off-record title - there are options depending whether the buyer or seller will select the title insurance company. The off-record title provision requires the seller to provide the buyer with surveys they have. The seller must also disclose all easements, liens, or other title matters not shown in public records.
• New survey - there are options to select whether buyer or seller will order a new survey, and who will pay for it.
• Due diligence - the seller specifies what due diligence documents will be provided to the buyer and a deadline to deliver them.
• Closing costs and fees - this section specifies how the closing costs and fees will be split between buyer and seller.
• Default and remedies - unless the specific performance box is checked, the seller's remedy in the event of a buyer default is to keep the earnest money deposit. The specific performance clause allows the seller to keep the earnest money deposit and attempt to recover additional damages. Or the seller could seek to enforce specific performance, which means forcing the buyer to purchase the property.
• Signatures - finally, buyer and seller execute the agreement by signing the contract and provide their contact information.

Seller's property disclosure forms

Seller disclosures are another important document when selling land in Colorado. Normally, the seller provides these disclosures within a few days of signing the purchase and sale agreement. The disclosures explain any potential issues to the purchaser, but they also protect you as the seller. Failing to disclose known issues with the property could result in legal liability for the seller.

The disclosure document covers many common land issues, such as zoning and legal issues, access problems, and environmental conditions. A free template for seller disclosures is available on the Colorado Division of Real Estate's website under Disclosure Documents.

Conclusion - using contracts and forms for your transaction

When it comes to real estate sales, every aspect of the process is important. From the contract of sale to the closing, every step requires careful attention and consideration. If you’re buying or selling land in Colorado, it's important to start with a purchase and sale agreement that both buyers and sellers can agree on. Fortunately, this is simple in Colorado because of the high-quality forms available.

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Please consult your financial advisor, accountant, real estate attorney, or tax professional. This article is for informational purposes and is not tax or legal advice.