The new financing contingency in the Real Estate Commission-approved contract is §5b and reads as follows: “Loan Commitment. If Buyer is to pay all or part of the Purchase Price by obtaining a new loan as specified in §4b, this contract is conditional upon Buyer obtaining a written loan commitment including, if required, (i) … Continue Reading
I. Affirmative Obligations vs. Contingencies. Many contract issues which could be addressed by affirmative obligations could also be addressed by contingencies. The first step in writing contingencies is deciding whether you wish to create an “affirmative obligation” or a “contingency.” An affirmative obligation is a provision which requires one of the parties to do … Continue Reading
Co-Author: Brad M. Lund, Esq. Who has the responsibility for making the FHA inspection disclosure notice to buyers: listing brokers, selling brokers or lenders? What are the consequences if the buyer does not execute such a disclosure? Technically, the lenders have the obligation to make the disclosure. However, real estate brokers should monitor timely execution … Continue Reading
12-61-203.5. Referral fees – interference with brokerage relationship No licensee under parts 1-4 of this article shall pay a referral fee unless reasonable cause for payment of the referral fee exists. A reasonable cause for payment means: An actual introduction of business has been made; A contractual referral fee relationships exists; or A contractual … Continue Reading
Co-Author: Amy E. Allison, Esq. Question: I am starting my own real estate company and will invest much of my time and money promoting my company. I have hired a graphic artist to design a logo. How can I avoid using someone else’s name? How can I protect against someone taking advantage of the goodwill I … Continue Reading
Sweeping changes in Colorado child custody laws took effect February 1, 1999. Custody battles will become a thing of the past, when a new law deleting “custody” from the family law arena is replaced with the concept of “parental” responsibilities. The changes in the law are in response to studies which show that parents … Continue Reading
Question: The basic facts are as follows: Seller lists. Buyer 1 makes an offer. Seller makes counter-offer with an acceptance deadline. Buyer 1 counters the Seller’s offer. Buyer 1 learns that Seller has received a competing offer from a Buyer 2 and to avoid losing the property to Buyer 2 . . . Buyer … Continue Reading
Question: I would like to buy a property I have listed for a seller/client for my own use, or for future resale. I do not want to buy the property to facilitate the seller’s purchase of another property. I want to own the property and do not wish to continue to market it after … Continue Reading
Co-Author: Richard Byron Peddie, Esq. Question: I manage commercial real estate. If one of our tenants doesn’t pay the tenant’s finish contractor, can the contractor collect from my client, the landlord?Answer: The Colorado Supreme Court recently agreed to review the Court of Appeals decision in the case of D.C.B. Construction v. Central City. This case is … Continue Reading
Question: I am the listing broker for a builder who put a property under contract with Buyer #1. Buyer #1 attempted to back out of the contract, claiming that his loan was not approved. My builder wants to keep Buyer #1’s earnest money and Buyer #1 objects. The builder would like to resell the property … Continue Reading
