Contracts

In Colorado, a real estate broker who prepares a purchase contract using non-Commission-approved forms instead of the required standard forms may be subject to:

ANo consequences since brokers have freedom to use any contract forms
BLicense discipline for failure to use Commission-approved forms✓ Correct
COnly a civil lawsuit from the parties
DDiscipline only if the transaction fails

Explanation

Colorado Commission rules require licensed brokers to use Commission-approved contract forms in standard residential transactions. Using non-approved forms instead of the required Colorado Commission forms (where they exist) can constitute a violation subject to disciplinary action.

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