CBS is the officially recognized Contract to Buy and Sell real estate in Colorado. This is the contract that the licensed real estate agents will use for the sale transaction of your home. It would be a very good idea for potential buyers and sellers to read it from top to bottom and ask any questions about it way before you sign it. As any legal document, it is advised parties consult legal and tax counsel before signing.
Here are some important items in the contract to consider:
Buyer name and title (2.1). Keep the name consistent with the loan documents including middle initials, second last names and suffixes. Also, when two or more people are buying, choosing between joint tenants and tenants in common can make a world of difference.
Inclusions and exclusions (2.5, 2.6). Don’t assume an item is included in the sale.
Dates and Deadlines (3). Check the referenced section and paragraph to read the detailed description for each event (contingency). They typical critical ones are the association documentation (if any), inspection, appraisal, loan objection, closing and possession dates.
Check price and terms for obvious reasons (4.1 ).
As a seller you want to see a “n/a” on (4.2).
The lender letter may indicate the buyer is obtaining a conventional loan but “FHA” may have been selected in this section (4.5.3).
Look out for any items indicating who is paying expenses such as appraisal (6.4), title (8.1.1, 8.1.2, 8.1.3), survey (9.1), closing costs (15), possession delivery failure costs (17) and any extra costs mentioned in additional provisions (30).
There are a few other items that could be relevant to any particular transaction. The important message from this article is to familiarize yourself with the contract ahead of time so when the day comes, you have some understanding of its meaning and consequences.
Click here to access the contract and forms page from the Colorado Division of Real Estate any time. You want to chose “Contract to Buy and Sell, Residential” as the reference for this article.
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