A Second Set of Eyes Never Hurts: An Attorney’s Role in a Colorado Real Estate Purchase Contract
For many, buying a home is the biggest financial transaction of their lives. With real estate brokers, appraisers, mortgage lenders, and sellers providing information during the home purchase process, it’s understandable to resist adding attorneys to the mix. However, this blog explains why having an attorney quickly review your purchase contract for a Colorado home sale could save you time, money, and stress in the long run.
Am I Legally Required to Have an Attorney When Purchasing a Home in Colorado?
No, it is not a legal obligation to have an attorney when purchasing a home in Colorado. However, Colorado real estate brokers are limited to using the standard Colorado Real Estate Commission Contract (“Colorado Form Contract”) for the purchase of residential real estate. Real estate brokers are great at assisting buyers in their search to find the perfect home, but when it comes to the purchase contract, an attorney may prove helpful because they are not limited to a Colorado Form Contract.
The contract itself clearly outlines this risk: “THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES, AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING.” In fact, Section 19 of the contract explicitly advises buyers and sellers to seek professional guidance, including legal examinations of titles, consultations on tax implications, and legal reviews when water rights, mineral rights, or leased items are involved. It also emphasizes the importance of these consultations occurring early, as the contract is governed by strict and unforgiving deadlines. Additionally, it clarifies that a real estate agent cannot practice law but is limited to completing the blanks on the Colorado Form Contract. For more information read our blog Colorado’s Standard Residential Buy Sell Contract Made Easy.
How Can an Attorney Help Me?
Attorneys can provide Colorado buyers and sellers with support in a residential real estate purchase agreement, help to understand the terms of the Colorado Form Contract and advise on deadline dates. Furthermore, attorneys can explain the process without overcomplicating things and give insight to the common areas of dispute during the Seller’s Disclosures. The most important thing an attorney can do however, is tailor contracts to your specific needs, something real estate brokers are legally unable to do; this ensures that your contract is specific to your scenario and needs.
Can I Afford an Attorney?
Relative to the size of a residential real estate transaction, paying an attorney to review your purchase contract will come at a fraction of the cost, with a specific expertise that will benefit you in the long run. Attorneys who specialize in Colorado residential real estate transactions are familiar with common issues that arise in the Colorado Form Contract and will not need to spend excessive hours reviewing your contract. For more information on how a lawyer can help with the purchase or sale of real estate, visit Selling Colorado Real Estate - an Attorney’s Role and Buying Colorado Real Estate - an Attorney’s Role. Peace of mind is priceless and having the legal experts at GLO review your purchase agreement for a new house can lead to fewer headaches in the future.
Chose GLO today
Purchasing a home is exciting! Let GLO help reduce your stress by having an attorney review the purchase contract. To learn how GLO can help secure a smooth transaction, read Review Of A Colorado Home Purchase/Sale Agreement. GLO specializes in working with clients across Colorado to purchase homes.
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GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation, and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results.
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