Colorado Contracts and Regulations

The Commission-approved Licensee Buy Out Addendum to Contract to Buy and Sell Real Estate is required when a licensee buys ____________.

A listed property to facilitate the property owner's purchase of another property

If you do have to draft a lease for a long-term occupancy post closing, it is best to use the

Brokerage Duties Addendum to Property Management Agreement or the Exclusive Right-To- Lease Listing Contract.

True or False: A Licensee Buy Out Addendum to Contract to Buy and Sell Real Estate is required when a licensee enters into a contract to purchase a property for personal use or future resale

False: Licnese Buy Out Addendum can be used as: 1. an inducement or to facilitate the property owner's purchase of another property 2. concurrent with the listing of such property 3. and when a licensee continues to market that property on behalf of the owner under an existing listing contract.

The Residential Addendum to the CBS Is attached to a Contract to Buy and Sell Real Estate for ____________ and _____________ if there is a residential structure on the property

Land and Commercial

The Post-Closing Occupancy Agreement Form is intended to address major risks and responsibilities of ______________ following closing and should be completed at time of contract.

a delayed possession

The IRS created the 1031 Exchange to _________.

help real estate investors defer taxes on the sales of investment property

In order to be binding, any release of liability by the Lien Holder must be_____________________________

in writing, must be executed by lien holder, and must provide that the Seller is released from liability.

The Licensee Buy Out Agreement states the seller will _____________.

seller will NOT pay a commission seller will NOT be liable for any loss or expense incurred by the broker/buyer after

When acting in a licensed capacity or when a licensee sells or buys real property on the licensee's own account, such licensee shall NOT have a continuing duty to _________.

use a "Licensee Buy Out Addendum"

In a short sale, Lien Holder may condition its agreement on Seller doing any of the following:

1. making a cash payment 2. signing a new note 3. continuing to owe the unpaid portion of the debt, and/or agreeing to other requirements of the lien holder.

The Seller may Terminate if the terms and conditions from Lien Holder to obtain a release of the lien are not acceptable to the Seller, by Seller's written notice received by Buyer on or before ___ days after the Short Sale Acceptance.

3

a long-term occupancy is considered longer than _____ days, and it is recommended at that point to draft a lease.

60

Either party has the right to terminate the Contract by written notice to the other party as long as it is received on or before __________. In addition, the Seller has the right to accept subsequent offers from other buyers prior to ___________________, without liability to the Buyer.

Short Sale Acceptance

True or False: A release of lien from the property does not by itself release seller from liability for the debt.

True

True or False: Lien holders must have a signed approval for a short sale to occur.

True

True or False: Short-term occupancy agreements, if properly treated, are not considered lease agreements.

True

The Post-Closing Occupancy Agreement is_____________.

Used when a residential transaction calls for a Seller to rent-back after closing, up to 60 days

To comply with the 1031 Exchange rules and defer paying taxes, the seller_______.

Within 45 days of the closing of the seller's old property, the seller must prepare a form identifying no more than 3 potential properties that the seller may want to acquire Within 180 days of the closing of the old property (which is 135 days after the expiration of their 45-day period), the seller must purchase and close on one of the properties listed on the 45-day form The seller may not touch the money. Typically the money is held by the exchange company (Qualified Intermediary), The holder of title to both the seller's old property and the seller's new property have to be the same, general, the seller must equalize the debt on the old and new property.

A termination contract cancels a purchase contract but not the _______________

listing contract