Colorado is known for its unique real estate contract system. Which of the following statements about the CREC-approved Contract to Buy and Sell Real Estate is NOT accurate?
Correct Answer
D) A licensee may modify the contract's standard terms by crossing out provisions and initialing the changes if both parties agree
It is NOT accurate that a licensee may modify the CREC contract's standard terms by crossing out provisions and initialing changes. Colorado law requires that modifications to the standardized contract be made using CREC-approved addenda or forms. Licensees cannot independently modify the preprinted contract language. Any modifications to standard terms that go beyond the fill-in-the-blank fields must be made by a licensed attorney or through CREC-approved addendum forms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
- → In Rhode Island, a licensee submits a written purchase or lease offer to an owner. Which statement is correct?
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- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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