Maria is a licensed broker associate in Colorado who has been asked by her buyer client to draft a custom purchase agreement instead of using the CREC-approved Contract to Buy and Sell Real Estate. The client believes a custom contract better fits the unique terms of the deal. What should Maria do?
Correct Answer
D) Use the CREC-approved Contract to Buy and Sell Real Estate, as licensees are required to use approved forms
Colorado licensees are required to use CREC-approved contract forms in real estate transactions. Only a licensed attorney may draft alternative contract language. Maria must use the CREC-approved Contract to Buy and Sell Real Estate regardless of the client's preference. This requirement is established under CREC rules and C.R.S. § 12-10-403.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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