• Client Info
  • Realtor Info
  • Seller Login
  • Contact

Boulder Property Network

Boulder Property Network

Boulder County Real Estate

  • Home
  • Search Real Estate Listings
  • Duane’s Timely Topics
  • Results Count
    • Why We Work by Referral
    • Testimonials
  • Our Team
    • Timmy Duggan
    • Barb Passalacqua
    • Kelsey Jensen
    • Duane Duggan
  • Real Estate Blog
You are here: Home / Boulder Real Estate Blog / Changes to Colorado Real Estate Contracts Coming January 2019

Changes to Colorado Real Estate Contracts Coming January 2019

December 4, 2018 by The Boulder Property Network

In Colorado, real estate brokers are not licensed to practice law and/or give legal advice. Yet licensed brokers can prepare contracts to buy and sell houses as a daily course of business. Colorado brokers are allowed to render services to real estate clients to a greater degree than in many states. This allowance dates back to the infamous (at least in the Colorado real estate industry) Conway-Bogue case. The bottom line of the decision was that brokers were allowed to work with contracts in real estate transactions without an attorney only if they filled in the blanks of standard and approved forms.

Part of the issue back then, however, was that there were no defined standard and approved forms. The Conway-Bogue Case dates back to 1957, but it wasn’t until 1971 when the Colorado Real Estate Commission was directed to adopt Rule F by the Attorney General, to provide Real Estate Commission approved contracts and forms for brokers.

When I first started selling real estate in 1978, the standard form to list a house was one page and the standard form to sell a house was one page. Now, 40 years later, the real estate industry has evolved, and legislative and economic conditions as well as lending rules have changed.

I recently took the new contracts class for the forms that licensed brokers will be required to use on January 1, 2019. The body of the Contract to Buy and Sell Real Estate (Residential), printed out to 19 pages! Remember, in 1978, it was only ONE page. That doesn’t even count the multi-page additions of a variety of required disclosures. It seems like a lot! After four decades working in the real estate industry, the changes and additions each year never seemed like a lot to me. But now as I look back and see how those revisions have added up, I have to say, “WOW!”

All of these updates to the contract come about from the Forms Committee of the Colorado Division of Real Estate. Some of the revisions are submitted because of new Federal or Colorado Legislation. Other edits and additions are introduced to solve problems that occurred because issues were not clarified. For example, the early one-page contract from the 1970s had no Inspection Provisions. Back in the “old days,” there was definitely the approach of Caveat Emptor or “buyer beware”.

Now, looking at the 19-page contract we will be using starting on January 1, I can see how it is really is an amazing work of art. Having “grown up” seeing every single clause added to the contract for the past 40 years, I have an understanding of the situation that created the need for many of the new clauses. At the same time, it’s important to be aware that some new clauses are approved, but then are removed the following year because in practice, they didn’t really function the way the Forms Committee thought they would. The end result is that, in most cases, our Standard Real Estate Commission Form allows us to help buyers and sellers come to an agreement that results in a real estate closing where everyone is smiling.

There are many changes to the 2019 contract. Some of them are merely “housekeeping” items or industry terminology changes, and others are more significant and adjust the normal course of business. To see them all, here’s the redline version of the Contract to Buy and Sell (Residential), which compares the contract we were using in 2018 to the new one for 2019, available on the Division of Real Estate website at: https://drive.google.com/file/d/14nlLsfNA4mzr7gAcW-cDlzgRuhrXWFW_/view

A quick summary of the updates:

* Many of the changes in the new contract are one-word updates. For example, the word “objection” was changed to “termination” numerous times.

* In the personal property section, a reference is made to a new form, allowing for some personal property to be transferred outside of the contract. Resort brokers should like this addition as they often sell homes furnished down to the dishes and silverware.

* The Loan Objection clause is changed to Loan Review and some of the provisions within it have changed. The Lender Property Requirements section has been clarified.

* The Homeowner’s Association Section has been changed to match the current legislation.

* The Off-Record Title section excludes any New Survey or Improvement Location Certificate.

* There is new language on disclosing Adverse Material Facts that appear after contract, but before closing.

* The Lead Based Paint Disclosure date is agreed upon in the dates and deadlines instead of being at time of contract.

* A Special Warranty Deed is now the default deed in the contract for conveyance of title.

* There is a new section for FIRPTA and Colorado 2% Withholding. I found it entertaining that the new clause doesn’t say what FIRPTA stands for. You know though, right? It stands for Foreign Investment in Real Property Tax Act!

* The Counter/Rejected box at the end of the contract has been removed.

Again, this is just a quick summary of some of the revisions. Go to the link above to see all of them! Remember, Licensed Real Estate Brokers are only licensed to fill out standard forms, and are required to advise buyers and sellers to seek legal advice on any legal matters they do not understand.

_____________

About Duane Duggan: Duane Duggan has been a Realtor® for RE/MAX of Boulder in Colorado since 1982 and has facilitated over 2,500 transactions over his career, the vast majority from repeat and referred clients. He has been awarded two of the highest honors bestowed by RE/MAX International: the Lifetime Achievement Award and the Circle of Legends Award. Living the life of a Realtor and being immersed in real estate led to the inception of his book, REALTOR® for Life. Also see his video podcasts about real estate topics on RE/MAX of Boulder’s YouTube channel.

For questions, email Duane at DuaneDuggan@BoulderCo.com or call 303-441-5611

Filed Under: Boulder Real Estate Blog, Duane's Timely Topics, Real Estate Investment Information Tagged With: real estate contracts

Contact Us

  • This field is for validation purposes and should be left unchanged.

Blog Archives

Featured Listings

$199,700Just Listed1199 Brainard Lake RdWard, CO 80481View Listing
$1,150,000Just Listed!562 Wild Horse CirBoulder, CO 80304View Listing
$523,700For Sale!1170 Monroe Drive Unit CBoulder, CO 80303View Listing
$499,000For Sale!1400 Lee Hill Rd Unit 7Boulder, CO 80304View Listing
$1,498,000Price Improvement!6028 Flagstaff RdBoulder, CO 80302View Listing
$199,700For Sale!1199 Brainard Lake Ward, CO 80481View Listing
Lot 12: $173,000 / Lot 13: $174,700For Sale!0 5th St (Lot 12 & 13)Nederland, CO 80466View Listing

See all of our listings.

Recently Sold Properties

389,700Sold3365 Chisholm Trl B101Boulder, CO 80301View Listing
$2,997,000Sold3080 Galena WayBoulder, CO 80305View Listing
$649,700 Sold271 Jefferson AveLouisville, CO 80027View Listing
$628,700Sold170 Golden Gate Canyon RdBlack Hawk, CO 80422View Listing
$655,000Sold2323 Buttercup CtSuperior, CO 80027View Listing
$595,000Sold1513 Sepia AveLongmont, CO 80501View Listing
$873,000Sold5455 Lee Hill DrBoulder, CO 80302View Listing
$451,000Sold311 Windance RdEstes Park, CO 80517View Listing
$235,000 / 280,000Sold765 Pine St & 797 Pine StNederland, CO 80466View Listing
$770,000Sold705 Club Pl.Louisville, CO 80027View Listing

Tweets by BoulderPropNet

Download our App

Boulder Property Network AppGet the Boulder Property Network mobile app to start your search for a new home right from your phone or other mobile device!

Download it here >>

Neighborhood News Report

How's the market? We can provide you with accurate information on the real estate market activity (Listings , Sales & more) in the area you are most interested in!

Get your Neighborhood News here >

Free Home Valuation

Free Market ReportBoulder Property Network can provide you with the information that you need to make a plan for your real estate purchase or sale.

Get your home valuation >>

Looking to Sell?

Looking to Buy?

Information for Investors

Recommended Reading for REALTORS®

REALTOR® for Life

by Duane Duggan

realtor-for-lifeWhat does it take to be a REALTOR® for life? This book provides first hand knowledge from one of the most distinguished and active careers in real estate. Duane Discusses his newly published book here.

Purchase on Amazon

© 2023 Boulder Property Network • RE/MAX of Boulder Inc.
2425 Canyon Blvd. #110, Boulder, CO 80302
800-825-7000 x611

Boulder Property Network on FacebookBoulder Property Network on TwitterDuane Duggan on LinkedinOur listings on YouTubeDownload our Listings App
Site Map