Effective July 1, 2009,the Colorado Real Estate Commission (CREC) has mandated changes in quite a few of our contracts.
Other important changes are:
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The Contract to Buy and Sell Real Estate, Exclusive Right to Buy, and the Exclusive Right to Sell. These form have been changed and will have to be used July 1 and after. Fortunately, it won't be necessary to rewrite documents that were effective prior to July 1, 2009. But, anything after that date will have to be on the new forms.
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One exception: Seller's Property Disclosures. All Seller's Property Disclosures need to be on the new forms, regardless of when they were originally written.
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- Carbon Monoxide Detectors.It is the responsibility of all sellers to provide carbon monoxide detectors prior to the sale closing on their home.
- Foreclosure Properties. The state has defined foreclosure properties to be any property where the mortgage payment is 31 days past due. And that any investor purchase or equity buyer can not use a Colorado license broker to write the transaction. It must be written by an attorney. This has a dynamic and far reaching effect for those of us in the business.
The Real Estate Commission in Colorado is constantly reviewing and rewriting our contracts. In an ever increasing effort to protect the consumer. It is our responsibility to keep abreast of all changes.
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Marianne Snygg, GRI, ABR, ASP
Broker Associate
ERA Herman Group Real Estate
Colorado Springs and Monument Real Estate
Hi Marianne, What are your thoughts about the equity buyer/investor. Who chooses/pays for the attorney and who does the attorney represent? If the seller is already in financial trouble, why/how can they afford an attorney? I'm trying to "wrap my head" around this new idea ---what are your thoughts on it?
Hi Mary: Well, what I know is to leave the situation alone! HA! And if you can't do that, then I'm thinking the buyer pays for the attorney and the attorney reps the buyer. Have you taken a CREC update class yet? If not, ask that question, and get back to me. I've already taken the class and don't have all the answers.
Thanks Marianne, I did not take the update class yet-- I wish I would have. It seems like the many who took it, don't have all the answers. Should be interesting to see how it works.
Mary, I asked my broker about the attorney "stuff" and her response was whoever hires the attorney is the attorney's client. I guess if the seller has the cash, then he'd be the one. Evidently, our commission will be protected, too.
And you heard about the SPD and Carbon Monoxide Detectors, too, right?
Marianne, it seems like the attorney is supposed to represent the seller who is foreclosure or behind in mortgage payments- so that they are "protected" from the equity buyer. I think your broker is correct, in that whoever hires the attorney is represented by that attorney. CAR's information is not clear there. Also, after the attorney prepares the contract who is responsible for meeting dates and deadlines....so many questions!! LOL!!
I did know about the others, also. Thanks, Marianne.
Mary, I agree with you. But, I believe that attorney's have a fudiciary responsibility to not take advantage of the seller. Who knows? It'll get worked out.
I don't know about you but I wish the commission would stop changing things so often. Yes, I know it's to protect the public but all they are really doing is confusing people.
Oh yes, Dena. It's very confusing. And it really confuses the clients, too. The whole idea of buyer agency is a strange concept, then to add the contract changes and have to explain it all. Whew! I'm think there are some folks in Denver that are trying to justify their salaries.