Once the Colorado Real estate purchase contact has been accepted by all parties it will determine the timeline of events to occur and the responsibilities of each party. You can view a blank contract to buy and sell real estate in Colorado and become more familiar with the different sections. Below you can find a quick overview of each section of the purchase contract:
Sections 1 – 2: Names all parties to the contract (buyer/sellers), the property being purchased, and what will be included and excluded from the purchase agreement.
Section 4: Will determine the purchase price, the amount and form of earnest money, how the buyer will purchase the property (cash or financed), type of financing, and the amount of closing costs, if any, the seller will pay for the buyer.
Section 5 – 6: Discuss the details of financing and appraisal conditions. In Colorado the buyer has the sole discretion to determine if the loan is acceptable and if they determine it’s not they can terminate the contract any time before the loan conditions deadline. The buyer can also terminate the contract if they home appraised value is less than the purchase price.
Section 7-8: Establishes who is responsible for providing and paying for title insurance, survey, and common interest community (HOA) documents to the buyer. The buyers have the ability to terminate the contract based on unsatisfactory results in any of the areas.
Section 9 – 14: Speaks about acting in good faith, the seller disclosures, and Colorado foreclosure act, closing date/time, transfer of title, payment of encumbrances. A bunch of legal talk.
Section 15 – 17: Covers which party will pay for the closing services, status and transfer fees of the HOA, transfer taxes, proration for taxes and association dues, and date of possession for the homebuyer.
Section 18 – 28: More legal talk.
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