Colorado 2014 Forms And Contract Review

Lorraine M. Roemer presented the new forms and changes for the coming year today at the Boulder Area Realtor Association.  This is my list of the Top 15 Changes for 2014.  Helpful for buyers and sellers and Realtors in Colorado!  This is my top twenty take aways from The Colorado 2014 Forms And Contract Review.

1. Closing Instructions are no longer required at the time of the contract.  Title companies will now draft instructions.  IMHO, this is the big news from Colorado 2014 Forms And Contract Review.
2. Doing a foreclosure sale? Use CBSF-1. If it is a short sale, use the regular contract!
3. For transactions where it is a renter occupied listing and will be non-owner occupied following the closing, use CBS2.
4. Don’t worry about water and sewer taps when selling pre-existing homes. the Colorado 2014 forms and contract review clarifies that the reference to taps is in regards to new construction.
5. Items 309 and 310 of the Counter Proposal specify they relate to CBS 2,3 and 4.  This is added so consumers are aware these sorts of inspections are not required for residential purchases.
6. The Federal government uses shall. Colorado contracts are now using Will or Must.
7. Have an issue with financing (line 217, Section 5.2 Loan Objection)? Notify the seller in a timely manner to avoid jeopardizing the earnest money.
8. A big change outlined in the Colorado 2014 Forms And Contract Review: Realtors need to be very cautious regarding OWC financing.  Dodd Frank banking reform makes it very difficult for Realtors to be involved with owner will carry terms.
9. Important for filling out the Colorado 2014 forms and contract correctly means honestly checking boxes.  Line 681 in the purchase contract is a biggie.  If it is an investment property, be honest and check the right box.
10. Sometimes buyers ask for “due diligence” documents. If the requested documents are not available, sellers should counter and remove the selected items from section 10.6.1.2.
11. While filling out the Seller’s Property Disclosure is not mandated, it is the requirement of sellers to honestly inform buyers of latent – hidden – defects or issues in their homes.  Water intrusion and mold may well be a big example of this issue in coming years following the flooding of 2013.
12. Line 418 “unless in writing…” is deleted.  Look at CBS1 and  you will this line could have required a great deal of liability.  Its gone in 2014.
13. There is a place to specify if you are utilizing an electronic lockbox in a listing agreement.  One wonders if these systems will re-emerge in our market.
14. Agents, in 2014, ask sellers for a copy of the prior ILC or survey!  According to line 404 of the contract, sellers must deliver it.
15. The department of regulatory (DORA) agencies wants to give the selection of title company to buyers and sellers. Realtors need to give clients three or more firms to select from.  Our class instructor for the Colorado 2014 Forms And Contract Review pointed out the contract now allows for seller to select and pay or buyer select and seller pay.
16. Consumers to Realtors will rejoice; the goal for 2015: No New Forms!