Real Estate Contracts
Colorado State | Dept. of Regulatory Agencies | Div. of Real Estate | Consumer Information
Real Estate and the Laws of Contracts: All contracts for the sale of real estate are required to be in writing to be enforceable according to Colorado Law. Requiring real estate purchase contracts to be in writing protects the public against scams and deceit in real estate dealings. Real estate contract must contain the same basic elements (including mutual agreement, lawful objective and consideration) as other contracts in order to be enforceable. Every Colorado Real Estate Commission form approved for use by Colorado real estate licensees includes the following notice; "This form has important legal consequences and the parties should consult legal and tax or other counsel before signing". This is sound advise for any legal document whether or not real estate is involved. If you don’t understand fully the contracts or other documents associated with a transaction, seek professional guidance.Attorney drawn contracts: Even though the Colorado Real Estate Commission has approved contract for use by real estate licensees that are appropriate for most real estate transactions, it is always acceptable for the parties to the transaction (buyer and seller) to have an attorney write or review a real estate contract.
Contracts drawn by the principals: Real Estate Commission Rules do not prohibit the buyer and seller from using a contract that has been prepared by either them or their respective attorneys. A real estate licensee is not a party to the transaction and is not authorized to assist in contract preparation except for the preparation of Real Estate Commission approved forms.
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