Colorado Real Estate Contract & Agreement
by Pete Doty – Denver Realtor
See the video (Offer and Acceptance)
In negotiating the purchase of your new home, the initial step will be to make an offer to purchase. This offer should be in writing and accompanied by an earnest money check to show good faith.
The offer will include:
1. The amount you are willing to pay
2. Financing terms
3. Any personal property specifically included
4. Loan commitment date
5. Closing and occupancy date
6. Other contingencies, including inspections
The offer will be written on a standard Colorado Division of Real Estate approved contract form. If the initial offer is not accepted by the seller, further negotiations generally reach terms agreeable to both buyer and seller. When buyer and seller agree on terms, the buyer immediately applies for financing and arranges for inspections.
EARNEST MONEY: At the time a written offer on a property is initiated, you will be required to make a deposit typically in the form of a personal check or cashier’s check. The amount deposited will be kept in the trust fund account of a Title Company, or the listing brokerage. IT will not be turned over to the seller.
Anticipate a minimum of $1,000. As homes increase in their price range, expect to deposit one to five percent of the purchase price. This earnest money will be credited to you at closing as part of your down payment and/or closing costs.
When property is sold or refinanced, the lender and/or Buyer needs a preliminary title report to see exactly what liens and encumbrances are against the property. Items that a preliminary title report show include:
1. Easements of record
2. Restrictions, covenants and conditions
3. Liens and/or judgements
4. Exact vested owner of record
5. Legal description
When the sale of the subject property is final and the title company has recorded the necessary documents, they then will issue a policy of title insurance to the new lender and the buyer showing clear title to the property.