Contracts

In Colorado, a 'Mutual Consent to Terminate Agreement' is signed when:

AA. Only one party wants to terminate
BB. Both buyer and seller agree to end the contract and specify the disposition of earnest money✓ Correct
CC. Only the broker terminates the listing
DD. The title company cancels the closing

Explanation

A Mutual Consent to Terminate Agreement (or Earnest Money Release) in Colorado is a written agreement signed by both buyer and seller to terminate the purchase contract. It specifies how the earnest money will be distributed. The earnest money holder cannot release funds without mutual written instructions from both parties or a court order.

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