Now, Why Am I Signing This?
Buyer Documents | Colorado Real Estate
When I begin to work with people who will purchase real estate in Colorado, aka, buyers, we use a few standard documents in order to start the ball rolling.
Below, I’ve listed the main ones that I work with when starting a new relationship with buyers, in the order in which I recommend they be approached. This is because the first few explain the process, while the fourth one binds the parties to certain duties and obligations.
Note: I can and do send document packages electronically, and we can do electronic signatures. By default, I send paper docs unless otherwise advised, because if you are like me, then you like to hold important documents in your hand so as to review them carefully, the old fashioned way. 🙂
Initial Colorado Real Estate Buyer Documents
In my opinion it is better to educate ourselves on that to which we will be bound before doing any of the actual binding(signing a binding contract – #4 – Exclusive Right to Buy Listing Contract).
The Documents and What They Accomplish
- Buyer Information Sheet – Conveys proper information about you to me so that your names, addresses and personal information are correct on important contracts and documents that will be used throughout the process.
- BROKERAGE DISCLOSURE TO BUYER – DEFINITIONS OF WORKING RELATIONSHIPS – Explains the different roles I can take in serving you as you buy Colorado real estate. You will have to decide in what capacity I serve you, and this document explains the different choices you have. I am happy to assist you in understanding the different roles I can take before you decide. STATE APPROVED FORM
- BUYER ADVISORY from RE/MAX Alliance – At RE/MAX Alliance, we want our clients and customers to know exactly what is happening with their purchase. This is a form that is specific to our brokerage that we provide as added value in the form of educational content. View Copy of BUYER ADVISORY Here
- EXCLUSIVE RIGHT TO BUY LISTING CONTRACT – Allows me to start work for you as your agent, and commence sending you listings via email, setting up showings, negotiating on your behalf and doing the other things that I do as a Realtor® to enable you to buy property. STATE APPROVED FORM
- Affiliated Business Disclosure – Informs you of business relationships or ownership stakes that one company may have in another company with which you may or may not be doing business. For example, some owners of RE/MAX Alliance also have ownership in Mortgage Alliance, a mortgage company that has offices and officers inside RE/MAX Alliance offices. It does not change the way that I operate as a Realtor®, and does not mean that any of my clients have to use said mortgage company, or even meet them. This is a disclosure we use to keep everything transparent and above board.
This is not an exhaustive list of every document that a person buying real estate will need to review and/or sign when they purchase property in Colorado.
It is the standard package that I start with when I begin working with buyers.
We Cover Every Part of Every Document
Have you ever participated in an event where you had to sign a document, and you did so without reading it? Or signed up for a digital service, and just blindly clicked “Accept Terms”, because, well, that’s just the way we do it sometimes? NOT IN REAL ESTATE! I want you to understand every sentence on every document you sign. Now, if you have done it a million times before, I won’t belabor the point. However, know that it is my job to make sure you understand what you are signing. We’ll take as long as we need. Clarity and real estate success are the goal!
NOTE – If you are taking a loan to pay for the property, you will have to sign a lot of documents for the lender. That is outside my realm. I am your property person, they are the money people. I can only explain documents that have been approved by the Colorado Division of Real Estate, and those that pertain to the property.
The moral of the story is this—if you are going to be buying real estate, be ready to read, understand, and sign a lot of official documents that are substantive and binding.
*Check post publish date, because rules, regulations, laws and brokerage practices change with time, and the list of documents that I use could change as well.
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