Maria is a newly licensed broker associate in Colorado who has just negotiated a deal between a buyer and a seller. The buyer asks Maria to draft a custom purchase agreement tailored to the specific terms they discussed, rather than using a standard form. What is the correct course of action under Colorado law?
Correct Answer
A) Maria must use the CREC-approved Contract to Buy and Sell Real Estate form and may not draft a custom agreement herself.
Under Colorado law and CREC rules, licensed brokers must use the CREC-approved standardized contract forms promulgated by the Colorado Real Estate Commission, including the Contract to Buy and Sell Real Estate. Licensees are not attorneys and are not permitted to draft their own purchase agreements or create alternative contract language. Only a licensed Colorado attorney may draft alternative or custom contract language for a real estate transaction. This requirement is unique to Colorado and is one of the state's most tested distinctions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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