A Colorado broker representing a buyer wants to modify the standard language in the CREC Contract to Buy and Sell Real Estate to include a unique financing contingency not covered by any CREC-approved addendum. What is the correct procedure under Colorado law?
Correct Answer
B) The broker must have a Colorado-licensed attorney draft the custom contingency language
Under Colorado law and CREC rules, licensees must use CREC-approved contract forms and may not draft their own contract language. If a situation requires contract language not available in any CREC-approved form or addendum, only a Colorado-licensed attorney may draft the custom language. This is a uniquely Colorado rule — licensees who draft contract language are engaging in the unauthorized practice of law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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