Bulletin: CO000028

Date:
August 30, 1999
To:
All Issuing Offices in Colorado
RE:
Contract to Buy and Sell Real Estate (Residential)

Dear Associates:

The Colorado Real Estate Commission has approved a new form of Contract to Buy and Sell Real Estate (Residential). It is mandatory that this form be used by all Real Estate Agents after September 1, 1999. A copy of the new form of Contract is available through the Colorado District office.

Some of the major changes between the old contract form and the new form that relate to agencies acting as escrow agents are as follows:

  1. Checkboxes in paragraph 2(a) as to the form of ownership for the buyer.

  2. All dates and deadlines are consolidated in a chart located in Paragraph 2(c) for ease in viewing the overall timeline for the transaction.

  3. Purchase Price inclusions have been changed to be more detailed as to the personal property being conveyed, including a provision for inclusion of water rights (Paragraph 3).

  4. Purchase Price and terms are contained within one chart for convenience (Paragraph 4).

  5. Seller must use a checkbox as to whether he will provide an abstract of title or a title commitment and a checkbox for if seller will give owner's extended coverage (Paragraph 7).

  6. A checkbox is provided to determine who will pay for survey.

  7. Contract automatically requires seller to provide Buyer with certain title documents, such as the plat and protective covenants. A checkbox is used to determine whether copies of other exceptions are required to be furnished to buyer. (Paragraph 7(b)).

  8. An entirely new section has been added to alert buyers to certain title issues that aren't commonly understood (Paragraph 8).

  9. The transfer of title provisions specifically list five separate categories of encumbrances, including the exceptions to title as shown in the title commitment (Paragraph 12).

  10. Prorations for taxes, Rents, etc. is more inclusive. The new contract has checkboxes to choose on what basis the real property taxes will be prorated. (Paragraph 15).

Your underwriting agreement does not cover these matters, however we are providing this information to you so that you can review the Contract and familiarize yourself with the form.

If you have any questions, please do not hesitate to contact the Colorado District Office.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
CO000003 Legislative Summary 1992
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None