When buying and selling property in Colorado, most transactions will use the contract approved by the Colorado Real Estate Commission. The Colorado contract to Buy and Sell real estate is 17 pages long and is written to protect the buyer.
Once under contract, there are eleven opportunities for the buyer to terminate the contract without losing their earnest money. These contingencies offer a buyer the time to do their due diligence and ensure they are comfortable with all the extras surrounding the home. Buyers can review the title documents, the HOA documents, the survey and any other requested docs. If the property doesn’t appraise there are provisions for that. There is even an opportunity to make sure there are no issues getting homeowner’s insurance. Colorado really looks out for the buyer. It is the agents job to ensure the appropriate actions are taken to protect those outs. If those opportunities are not protected the buyer can lose their earnest money if they don’t perform.
From the seller side of the sale, once the contract is signed, they are obligated to sell. They don’t have any opportunities to terminate the contract unless the buyer provides those opportunities. Once a buyer is under contract that property is theirs to buy, or not. If the contract is followed, the buyer can terminate the sale with a valid reason and receive 100% of their earnest money back. The seller is just stuck with having to put their property back on the market and receives no compensation.
Minimize the Risks
The buyer is most at risk when buying and selling property in Colorado. If a buyer doesn’t buy, the seller still has a property to sell but if a buyer buys a lemon, they are stuck with it. The state of Colorado has put together a strong real estate contract to try to ensure the buyer knows what they are getting into before they buy. As a buyer, it is imperative your rights are looked after and protected. Those rights shouldn’t be protected by just anyone. Do what you can to make sure you are working with the right agent. Contact Mountain Living Real Estate today.