CONTRACT TO BUY AND SELL REAL ESTATE
(RESIDENTIAL)

Over the next several months - we would like to educate and provide information on the Colorado Contract to Buy and Sell - the Purchase contract.  We meet with buyers, and find that the Contract  is foreign and very overwhelming. Understandably so!!  There are 31 sections in the Colorado Purchase Contract- written in legal terms by Colorado real estate attorneys.  Our goal is to help in   simplifying the Purchase contract, as written.  We are not attorneys - nor can we offer legal advice.  

The Contract is also categorized  into several main "sections"- the first of these being the "Agreement".  The "Agreement" portion the contract contains Sections #1-4.    

We will work on Sections #1 and #2 in this post and follow along with each section in numerical order. 

Section #1.ContentAdvisor           AGREEMENT. 

The 1st paragraph of the Purchase Contract, below, summarizes the agreement-  i.e. , that a buyer or group of buyer's, wants to buy from a seller or group of seller's.  When a buyer submits a contract to a seller, the buyer (or the agent ) usually prepares the contract.   The phrase from the contract below - "Seller agrees to sell"  may be a little misleading.    If a seller agrees to the buyer's proposed terms,  than the seller can sign and agree to this Contract as originally submitted.   If a Seller does not agree to this Contract submitted by a buyer,  the seller has  the right to counter or reject the buyers offer.  

 Section #2.          PARTIES AND PROPERTY. -   
 

Section #2 contains all of the information on the buyer/s and seller/s, and also describes what is being purchased by the buyer, as well as being sold by the seller. The full legal names of all of the buyers & sellers will be listed in this section. The Purchase agreement is only between the Buyer/s and Seller/s -the Real Estate brokers are not actually part of the contract (even though the Contract  will most likely be prepared by the Brokers).

In Section #2 - the Buyer/s will also need to decide how they are taking title to a property.  Buyer's should discuss this question with an Attorney - to determine which type of ownership best fits their personal situation.  

Also listed in Section #2 will be the street address and legal description of the property.  

Next, this section describes in detail what is included and excluded in the sale of the property.  This includes personal property as well. Buyers can request any items of personal property that are in the sellers' home - it is all part of the negotiation process. Just make sure that all items being sold to a buyer are listed in this contract - there should be NO side agreements between buyers & sellers.  Some of the more common items of personal property that  buyers will list in this section are the refrigerator, washer, dryer and stand-alone freezer.

Finally, Section #2 deals with the transfer of Water Rights, Well Rights, Water and Sewer Taps .  If you are purchasing a property where you will receive, are selling or are negotiating these rights, you should probably have an attorney involved in the transaction. 

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The following is the actual section from the Colorado Purchase Contract : 

AGREEMENT

 

1.ContentAdvisor           AGREEMENT. 

"Buyer agrees to buy and Seller agrees to sell, the Property described below on the terms and conditions set forth in this contract (Contract)."

2.          PARTIES AND PROPERTY.

2.1.         Buyer. Buyer,   ( any and all buyers listed here )
will take title to the Property described below as    Joint Tenants     Tenants In Common
                Other   (clr)

         2.2    No Assignability. This Contract Is Not assignable by Buyer unless otherwise specified in Additional Provisions

             2.3. Seller. Seller, ______, is the current owner of the Property described below.
             2.4. Property. The Property is the following legally described real estate in the County of
 , Colorado:
known as No. -" Street Address" - 123 Main 
 
together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant thereto, and all interest of Seller in vacated streets and alleys adjacent thereto, except as herein excluded (Property).

             2.5. Contract Advisor Inclusions.  The Purchase Price includes the following items (Inclusions):
                    2.5.1. Contract Advisor  Inclusions - Attached. If attached to the Property on the date of this Contract, the following items are included unless excluded under Exclusions: lighting, heating, plumbing, ventilating and air conditioning units, TV antennas, inside telephone, network and coaxial (cable) wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems, built-in kitchen appliances, sprinkler systems and controls, built-in vacuum systems (including accessories), garage door openers (including   remote controls). If checked, the following are owned by the Seller and included (leased items should be listed under Due Diligence Documents): None     Solar Panels     Water Softeners      Security Systems  Satellite Systems (including satellite dishes). If any additional items are attached to the Property after the date of this Contract, such additional items are also included in the Purchase Price.
                    2.5.2.  Contract Advisor  Inclusions - Not Attached. If on the Property, whether attached or not, on the date of this Contract, the following items are included unless excluded under Exclusions: storm windows, storm doors, window and porch shades, awnings, blinds, screens, window coverings and treatments, curtain rods, drapery rods, fireplace inserts, fireplace screens, fireplace grates, heating stoves, storage sheds, carbon monoxide alarms, smoke/fire detectors and all keys.
                    2.5.3. Personal Property - Conveyance. Any personal property must be conveyed at Closing by Seller free and clear of all taxes (except personal property taxes for the year of Closing), liens and encumbrances, except 
 
Conveyance of all personal property will be by bill of sale or other applicable legal instrument. 
                    2.5.4.  Other Inclusions.  The following items, whether fixtures or personal property, are also included in the Purchase Price: 
                    2.5.5.ContentAdvisor    Parking and Storage Facilities.  Use Only   Ownership (clr) of the following parking facilities: ; and  Use Only   Ownership  (clr) of the following storage facilities:
 
             2.6.ContentAdvisor         Exclusions. The following items are excluded (Exclusions):                             
             2.7. ContentAdvisor       Water Rights, Well Rights, Water and Sewer Taps. 
                        2.7.1.   Deeded Water Rights. The following legally described water rights:
   
 
                             Any deeded water rights will be conveyed by a good and sufficient  deed at Closing.   
                        2.7.2.   Other Rights Relating to Water. The following rights relating to water not included in §§ 2.7.1, 2.7.3, 2.7.4 and 2.7.5, will be transferred to Buyer at Closing: 
                       2.7.3.Contract Advisor Well Rights.    Seller agrees to supply required information to Buyer about the well. Buyer understands that if the well to be transferred is a “Small Capacity Well” or a “Domestic Exempt Water Well,” used for ordinary household purposes, Buyer must, prior to or at Closing, complete a Change in Ownership form for the well. If an existing well has not been registered with the Colorado Division of Water Resources in the Department of Natural Resources (Division), Buyer must complete a registration of existing well form for the well and pay the cost of registration. If no person will be providing a closing service in connection with the transaction, Buyer must file the form with the Division within sixty days after Closing. The Well Permit # is  
                        2.7.4. Water Stock Certificates. The water stock certificates to be transferred at Closing are as follows:
                             2.7.5. Conveyance. If Buyer is to receive any rights to water pursuant to § 2.7.2 (Other Rights Relating to Water), § 2.7.3 (Well Rights), or § 2.7.4 (Water Stock Certificates), Seller agrees to convey such rights to Buyer by executing the applicable legal instrument at Closing.