On May 10, 2019, the Colorado Real Estate Commission (Commission) adopted a change to the Contract to Buy and Sell Real Estate (CBS) forms, and also adopted a new Closing Instructions form. These forms are effective immediately. VanEd will be including this information into our coursework in the coming few weeks.
Contract to Buy and Sell Real Estate
The only change to all the CBS forms (Residential, Income-Residential, Commercial, Land, and Foreclosure Protection Act – Residential) is in Section 13 – “Transfer of Title”. The modification to this section was due to the recent passing of HB19-1098 (Deeds to Convey Real Estate).
As a result, the new section 13 incorporates language that if title is conveyed by a warranty deed, it will be conveyed “subject to statutory exceptions” which are defined in §38-30-113(5)(a), C.R.S.
You can presently use the current Contracts to Buy and Sell Real Estate or the newly adopted contracts prior to July 1, 2019. As of July 1, 2019, however, only the newly adopted mandatory CBS forms will be acceptable for use in your transactions.
The Commission also adopted a new Closing Instructions form. The new form contains updated sections including “Preparation of Documents” by the closing company regarding the Deed, Bill of Sale, and Closing Statement; “Wire and Other Frauds”; and “FIRPTA and Colorado Withholding”. You can presently use the current Closing Instructions form or the newly adopted form prior to July 1, 2019. As of July 1, 2019, however, only the newly adopted mandatory Closing Instructions form will be acceptable for use in your transactions.
Written and Published by: VanEd