In Colorado, who has the authority to draft alternative contract language for a real estate purchase transaction when the CREC-approved Contract to Buy and Sell Real Estate does not address a specific situation?
Correct Answer
C) A licensed Colorado attorney
Under Colorado law and CREC rules, only a licensed Colorado attorney may draft alternative contract language when the CREC-approved forms do not address a specific situation. Real estate licensees — regardless of experience level or position — are not authorized to draft custom contract language, as doing so would constitute unauthorized practice of law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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