Selling Colorado Real Estate - an Attorney’s Role

For most homeowners, selling a property in Colorado can be an overwhelming process filled with weight both financially, and emotionally. As you prepare to transition from your current residence, you'll encounter a variety of different professionals. Many sellers might question the necessity and importance of adding a real estate attorney into the mix, overlooking the unique and critical legal insights an attorney provides- particularly concerning the Colorado Real Estate Commission (CREC) standard Contract to Buy and Sell Real Estate. This oversight can lead to significant financial and legal vulnerabilities in the future.

The risk of not having an experienced real estate attorney review your sale contract is substantial, potentially leading to unforeseen liabilities, costly disputes, or missed opportunities that could impact your net proceeds and overall peace of mind. While not legally required for a home sale in Colorado, GLO emphasizes that having a dedicated legal expert is not merely a wise choice, but a strategic investment. We provide comprehensive legal guidance to save you substantial time, money, and stress, ensuring your best interests are unequivocally protected throughout your Colorado home selling process.

What are the Benefits of Having an Attorney?

While a home sale involves many experts, the core legal document—the purchase contract—is highly technical. Relying solely on non-attorney professionals for this critical element can expose sellers to liabilities that only legal expertise can fully address. Any requested alterations or provisions to the contract cannot be made without an attorney; real estate agents and brokers are not allowed to legally adjust the contract, because while they are knowledgeable, it is not their area of expertise. They cannot provide legal advice, interpret complex contractual clauses, or customize the contract with significant addendums or additional clauses that go beyond the pre-approved language. To see how an attorney can help in your real estate purchase read our blog Buying Colorado Real Estate - an Attorney’s Role.

CREC Contract to Buy and Sell Real Estate

The Colorado Real Estate Commission (CREC) approved form, Contract to Buy and Sell Real Estate, is the foundation of almost every residential real estate transaction in Colorado. While this standardized document is designed to streamline transactions handled by real estate brokers, its limitations become apparent when a seller is attempting to navigate the process without their own dedicated legal counsel. Real estate brokers are exceptionally skilled at market analysis, property evaluation, marketing, and connecting sellers with buyers, but are legally restricted to filling in the blanks on this form.

This critical distinction often becomes a significant point of risk for unsuspecting homeowners. The CREC form itself prominently warns, both at the top and in an entire dedicated Section 19, that it "HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING." This is an acknowledgment by the state's regulatory body that the contract carries legal weight beyond a broker's purview. Without an attorney, a seller might inadvertently agree to terms that are unfavorable, expose themselves to unforeseen liabilities, or limit their recourse if issues arise post-closing. For example, understanding the precise conditions under which a buyer can terminate the contract and demand earnest money, the implications of various inspection or appraisal objections, or the extent of your liability for property disclosures goes far beyond simply completing a form; it requires careful legal interpretation and advice. The absence of a legal professional means sellers are navigating a complex legal document without the very expertise the form itself recommends, leaving them vulnerable to misunderstandings that can lead to costly disputes or unforeseen liabilities after the property is sold. Read A Second Set of Eyes Never Hurts: An Attorney’s Role in a Colorado Real Estate Purchase Contract for more information.

How do I Navigate the Process?

Beyond the general limitations of real estate brokers, several technical and potentially risky aspects of a Colorado home sale underscore the indispensable role of an attorney. The CREC form is filled with critical deadline dates for various contingencies: inspections, loan objections, appraisal reviews, and title examinations. For a seller, missing or mishandling these deadlines can have severe consequences, potentially leading to the loss of a qualified buyer, the inability to retain earnest money, or even being forced into unfavorable concessions. While a broker can remind you of these dates, an attorney can advise on the legal implications of granting extensions, negotiating new terms in response to objections, or determining when you have a legitimate claim to the buyer's earnest money if they default.

Furthermore, the Seller's Property Disclosure Form is a significant area of legal risk for sellers. Colorado law imposes a legal duty to disclose "known adverse material facts" about the property. An attorney can help you understand the full scope of this obligation, advise on what constitutes a "material fact," and ensure your disclosures are accurate and comprehensive to mitigate future liability claims from a buyer. They can also assist in drafting and reviewing responses to buyer objections or requests for repairs stemming from inspections or disclosures, ensuring your responses protect your interests. Most importantly, an attorney's unique ability to adjust the CREC form to uniquely fit your situation offers a critical layer of customization and protection. This means they can draft specific addendums, amend clauses that might expose you to undue risk, or insert protective language that addresses unique circumstances of your property or your sale terms. This ability to tailor the legal document to your specific needs is a powerful risk mitigation tool, helping to prevent future headaches and ensuring the contract truly reflects your desired outcome and minimizes your exposure to unexpected post-closing claims.

How GLO Can Help

Selling a home in Colorado involves legal risks that go beyond standard forms. At GLO, our real estate attorneys provide expert contract review to protect your interests and ensure a smooth transaction. Learn how GLO can help you by visiting Consultations on CREC Real Estate Contracts.

Whether or not you’re using a broker, we explain contract terms, highlight key deadlines, and help you manage inspections, financing, and contingencies. We guide you through the Seller’s Property Disclosure Form and, unlike brokers, can modify the CREC form and draft custom clauses to address your unique needs. With GLO’s proactive legal support, you reduce liability, prevent disputes, and move forward with confidence.

Please fill out an Intake Form to inquire about working with GLO.

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 through a specific fee agreement. GLO does not guarantee any results.