DATES AND DEADLINE

This section appears on page one and two of the Colorado “Contract to Buy and Sell Real Estate” and contains 28 items that must be adhered to by both the buyer and seller while under contract, as these dates and deadlines are legally binding. Should a party fail to perform by the specified deadline of the executed contract, this constitutes “default”. I will keep you advised and monitor these dates to keep you in contract compliance; hence avoiding default.

Facilitating Real Estate Vendors

The buyer’s agent and I will work in tandem to coordinate the vendors who will need to enter your property. Examples might include, inspectors, appraisers, contractors, surveyors to name the most common. You will always be apprised prior to their arrival as well as the outcome of their particular mission.

FOUR MAJOR CONTINGENCIES

Inspection

This is the biggest “out” for the buyer and usually a great source of stress for both parties. Following the inspection, which is typically the most trying period of this process, the buyer can proceed with the Contract or return with an “Inspection Notice” with either a) notice to terminate or b) notice to correct noting “unsatisfactory physical conditions or inclusions.” When the later occurs, it usually opens the contract back up to negotiation. It is essential to keep as emotionally detached from any “notice to correct” laundry list as humanly possible. In a seller’s market this list was usually focused strictly on safety items in need of repair which is no longer the case.

Appraisal

If the buyer is financing the home, the lender will usually require and appraisal on the property. Buyer’s agents usually structure the Contract so as to terminate should the home fail to appraise at or above the purchase price.

Loan Conditions Deadline

By the date given on this deadline, the buyer, is not satisfied with the loan, they can deliver “written notice to the seller to terminate the contract”. This lends itself to a precarious state for the seller, for as long as the buyer delivers written notice by this deadline, the seller also returns the earnest money.

Title Review

It is custom for the seller to provide the buyer with title insurance which affords some protection that the buyer is receiving ownership to the home. The title company, as directed by the seller, provides a title commitment to the buyer within the time frame noted in the Contract. Title commitment shows recorded information in regards to title, that title insurance will not insure against in the, “exceptions to title” section. This is the time the buyer can decide whether to proceed with the purchase based on these exceptions that may impact full ownership. Additional information on the title commitment include “standard exceptions” (e.g. in Colorado, property taxes are paid in arrears so there is a lien in favor of the respective County) and “non-standard” exceptions which might include utility easements. Section 7 of the Contract also allows for buyer’s to check a box to “commit to delete or insure over the standard exceptions” with a list of 6 pertaining items. The title insurance company is not mandated to delete or insure over any of the standard exceptions. Again, the buyer can give written notice to terminate the contract as indicated in the Contract.

Additional contingencies exist but these are the big four!