In Colorado, real estate agents are not licensed to practice law or provide legal advice. However, licensed agents regularly draft contracts for the purchase and sale of homes as part of their daily work. Brokers in Colorado are allowed to offer a broader range of services to their customers than in many other states, a practice rooted in the high-profile Conway-Bogue case. This case is widely known in the Colorado real estate industry and states that brokers can prepare documents for real estate transactions by filling in the blanks on standard, approved forms, provided they act as intermediaries in the transaction. was proven. One of the challenges at the time was that there was no standardized form. Although the Conway-Bogue case dates back to 1957, it was not until 1971 that the Colorado Real Estate Commission, under the direction of the Attorney General, adopted Rule F, which created a standard form for listing and selling real estate. It was from. When I started selling real estate in 1978, listing forms and sales forms were only one page each. Today, 46 years later, the real estate industry has evolved significantly due to changes in laws, economic conditions, and lending rules.
As of August 2024, the real estate sales contract (housing) has 21 pages! Compare with 1978. At that time it was one page. And that doesn’t even include a multi-page addendum on various required disclosures. It seems like there are a lot! In my 40-plus year career in real estate, I have never once felt overwhelmed by incremental changes and additions to contracts each year. But looking back now, it’s amazing!
Contract changes will be promoted by the Colorado Department of Real Estate Forms Committee. Some updates address new federal or Colorado law, while others address issues caused by a lack of clarity. For example, early one-page contracts did not include inspection clauses. In the “old days” it was more of a “buyer beware” approach. Now, if you look at the 21-page contract as of August 15, 2024, it is a truly astonishing document. Having learned about every clause added to contracts over the past 46 years of my real estate career, I have a deep understanding of the circumstances that led to each change. In some cases, new provisions may be removed the following year because they did not work as intended. Ultimately, the Colorado Real Estate Commission’s standard forms help buyers and sellers reach an agreement, leading to a successful closing where everyone leaves happy.
There are a number of changes to the 2024 contract. Some of these may be simply “housekeeping” items or changes to industry terminology, while others may be changes from the normal flow of business. To see all of this, take a look at the redline version of the Purchase and Sale Agreement (Residential). We are comparing the contract you had before August 15, 2024 with the contract you have as of August 15, 2024. Available from drive.google. .com/file/d/1Eh9iZOQDyQqAKZUU1fpRB25pZlLoH04w/view.
Visit the link above to see them all. Remember, licensed real estate agents are only allowed to fill out standard forms and are obligated to advise buyers and sellers to seek legal advice on any legal matters they do not understand. .
Duane graduated from the University of Colorado in 1978 with a degree in business administration and a major in real estate. Since then, he has worked as a Realtor® in Boulder. He joined RE/MAX in Boulder in 1982 and has facilitated more than 2,500 transactions throughout his career. His life as a real estate agent and immersion in real estate led him to write his book, Realtor for Life. If you have any questions, please email duaneduggan@boulderco.com or call 303.441.5611 or boulderco.com.
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