Colorado Real Estate Contracts: CREC Forms and CBS Provisions

Colorado's CREC-promulgated contract forms are one of the most distinctive features of Colorado real estate law and are heavily tested.

Why CREC Promulgates Forms

Unlike most states where industry associations create voluntary forms, Colorado's Real Estate Commission mandates the use of specific forms. Using a non-approved contract is a license violation. This ensures consumer protection and standardization across the state.

Colorado Contract to Buy and Sell Real Estate (CBS): Key Sections

Dates and Deadlines (Box 2 of the CBS): The CBS contract is built around a series of deadlines that must be carefully tracked: - Alternative Earnest Money Deadline - Record Title Deadline - Off-Record Title Deadline - Inspection Termination Deadline - Inspection Objection Deadline - Inspection Resolution Deadline - Loan Conditions Deadline - Closing Date - Possession Date

Inspection Process: 1. Buyer conducts inspections 2. If issues found, buyer submits Inspection Objection (requests repairs/credits) 3. Seller submits Inspection Resolution (accepts, rejects, or modifies) 4. If parties don't resolve: buyer may terminate (with earnest money returned) before the deadline

Title Review: Buyer receives title documents and must object before the Title Objection Deadline. After this deadline, any known title issues are accepted by the buyer.

Termination Deadline: Colorado's CBS has a specific Termination Deadline — the date by which the buyer must terminate (for any reason within the inspection period). After this date, the buyer cannot terminate based on inspection results.

Earnest Money in Colorado

• Held by the employing broker's trust account or a title company
• Returned to buyer if buyer terminates within any applicable deadline
• Retained by seller if buyer defaults after all deadlines expire

Common Exam Questions

Q: A Colorado buyer submits an Inspection Objection requesting $5,000 in repairs. The seller refuses. What can the buyer do? A: Submit a Notice to Terminate before the Inspection Resolution Deadline and receive their earnest money back.

Q: A Colorado licensee drafts a custom purchase contract for a client instead of using the CREC form. This is: A: A license violation — CREC-promulgated forms are mandatory.

[Practice Colorado contract questions at CARealestate.com/states/colorado](https://carealestate.com/states/colorado)