- November 15, 2004
- All Affiliate Offices in Colorado
- The New Colorado Real Estate Contract
The Colorado Real Estate Commission has recently revised the following standard forms:
- Contract to Buy and Sell Real Estate (Residential), CBS1-07-04;
- Contract to Buy and Sell Real Estate (Commercial), CBS 2-07-04;
- Contract to Buy and Sell Real Estate (Vacant Land/Farm & Ranch), CBS 3-07-04.
The Commission has also revised its standard form Closing Instructions and Earnest Money Receipt, CL 8-05-04. Copies of the new forms may be found on the Real Estate Commission Website at http://www.dora.state.co.us/real-estate/contracts/CONTRACTSII.htm or from the Colorado Land Title Association at www.ltac.org/refdocs.asp. These forms are mandatory beginning on October 1, 2004.
The new Residential Contract (CBS 1-07-04 ) raises issues relating to the preparation of the exceptions clause in the warranty portion of the Warranty Deed.
COMPANY POLICY: Warranty deeds prepared by an Affiliate office ("Office") pursuant to the Contract must contain the following in the exceptions clause to the warranties portion of the Warranty Deed:
"general taxes for the year ____________ and subsequent years; and those specific exceptions described by reference to recorded documents as reflected in the Title Documents accepted by Grantee(s) In accordance with Section 8a(Title Review) of the Contract to Buy and Sell Real Estate relating to the above described property; distribution utility easements (including cable TV); those specifically described rights of third parties not shown by the public records of which Grantee has actual knowledge and which were accepted by Grantee(s) in accordance with Section 8b (Matters not shown by the Public Records) and Section 8c (Survey Review) of the Contract to Buy and Sell Real Estate relating to the above described real property, inclusion of the property within any special tax district; and, the benefit and burdens of any declaration and party wall agreements, if any."
Should the parties to the transaction request different language be placed in the exception clause of the warranties, then the Office must obtain an Addendum to the Contract or a separate written instruction signed by both buyer and seller which states the specific language that the parties want the Office to use in preparing the Warranty Deed.
IF YOU HAVE ANY QUESTIONS REGARDING THE ISSUES RAISED BY THIS BULLETIN, PLEASE CONTACT YOUR LOCAL UNDERWRITING PERSONNEL.
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.