Purchasing real estate for investment purposes may be the easy part. Managing the property can be the challenge. Multiple unit dwellings and commercial buildings are often managed by a property manager or property management company independent of the property owner. Single unit or single properties or duplexes, on the other hand, are often managed by the owner. While managing your own property can save money, it may also lead to…
What are the pitfalls of structuring a seller-financed transaction through an installment land contract? Though the Real Estate Commission dropped its approval of the use of Installment Land Contracts (“ILCs”), consumers still frequently ask brokers about ILCs. Even in its pre-disapproval comments, the Manual stated: “this instrument is full of pitfalls for both buyer and seller, and may be used under circumstances to the injury of the buyer and, under…
…and the Paid Selling Broker is not subject to arbitration. The listing broker who pays a non-REALTOR® a cooperating commission is exposed to the possibility of paying a cooperating commission twice: once initially to the Paid Selling Broker and again to the Complainant Selling Broker. To avoid this problem, listing brokers should consider paying cooperating commissions to non-REALTOR® selling brokers only after the non-REALTOR® has consented to future REALTOR® arbitration,…
You’ve probably worked long and hard to develop your business to the point where it is today. Along the way, you may have developed customer lists, business knowledge, business methods, technology or other processes which help you to be competitive. These items may be “trade secrets.” If you fail to take proper steps to make sure your competitors do not have access to your trade secrets, you may find that…
I have just received an otherwise desirable offer on one of my listings. Unfortunately, it is not clear whether the purchaser will be able to qualify for the loan. My seller is inclined to accept the offer, but wants to preserve the flexibility of replacing this first purchaser with another one, if a better offer comes along. How can I put a “first right of refusal” in the contract?…
…communicate with each other, and may even choose not to communicate with each other regarding the sale of property. Consequently, communicating offers and other information to only one spouse could have serious consequences for a real estate professional. To minimize the risk of “lost” messages, real estate professionals should strive to make sure that all communications to unhappy married couples (whether they are pre-divorce, going through a divorce or simply…
…choose. General Power of Attorney A general power of attorney authorizes the person designated to act on your behalf. You can execute a general power of attorney and leave it with an attorney with instructions that it is only to be given to your agent if you become incapacitated. Another alternative is to draft the general power of attorney to take effect only if you are incapacitated and unable to…
Must a seller honor a written offer he verbally accepted? A seller verbally accepted a written offer for a property. A second, better offer has come from a second buyer. The seller would prefer to get out of any obligations it might have to the first purchaser. Is the seller bound by the first offer because of the verbal acceptance? Colorado law states that “Every contract for… the sale…
…against the seller. The box in paragraph 18(a,2) of the real estate commission approved form only affects the seller’s remedies against the buyer. Paragraph 18(b) of the Real Estate Commission approved contract form provides the purchaser a specific performance remedy against the seller regardless of how the box in paragraph 18(a,2) of the contract is checked. The seller cannot unilaterally terminate the contract simply by refunding the earnest money. …
Grandparents can play an important role in the development of their grandchildren. Unfortunately, the relationship between grandchildren and their grandparents is sometimes overlooked in a divorce or other custody-related proceeding. For example, a husband or wife who harbors hostile feelings toward his or her spouse may cut-off communications with his or her spouse’s parents, and consequently cut off communications between a grandchild and his grandparents. Under Colorado law, however,…
