Colorado Forms and Contracts
Colorado is unusual in requiring licensees to use standardized contract forms approved by the Colorado Real Estate Commission. This is the largest state content area, so mastery of the approved forms and their proper completion is essential. Using unauthorized language can constitute the unauthorized practice of law.
Commission-Approved Standard Forms
The Colorado Real Estate Commission approves standard forms that licensees must use, such as the Contract to Buy and Sell Real Estate. These forms protect consumers and keep licensees within the limits of their license by supplying pre-drafted legal language. Licensees complete the forms by filling in the approved blanks rather than drafting original clauses. Using current versions is important because the Commission periodically updates forms.
The Contract to Buy and Sell Real Estate
This core Colorado contract sets out price, deadlines, contingencies, and the rights of buyer and seller. It contains a detailed dates and deadlines section that governs inspection, financing, title, and closing timelines. Meeting these deadlines is critical because missing one can affect a party's right to terminate. Licensees must understand each section to advise clients and complete the form accurately.
Limits on Drafting and Unauthorized Practice of Law
Colorado licensees may fill in approved forms but may not draft complex or non-standard legal provisions. Preparing original legal language that materially alters party rights is the unauthorized practice of law. When a client needs special provisions beyond the standard form, the licensee should recommend an attorney. This boundary protects both consumers and licensees from legal risk.