Contracts
In Colorado, what happens if the seller defaults on the purchase contract (refuses to close)?
AA. The buyer automatically gets double the earnest money
BB. The buyer may sue for specific performance (to compel the sale), rescission and damages, or retain earnest money — based on contract terms and what the court allows✓ Correct
CC. The Colorado Real Estate Commission will force the sale
DD. The buyer must accept the earnest money as their only remedy
Explanation
When a seller defaults, Colorado law and the contract provide the buyer with potential remedies including: specific performance (court order to complete the sale), rescission (cancellation with return of all funds), and/or money damages. The specific remedies available depend on the contract terms. Courts have authority to compel specific performance in real estate because each parcel is unique.
Related Colorado Contracts Questions
- In Colorado, the 'Seller's Property Disclosure' form is used to:
- A Colorado buyer's offer includes a 'financing contingency.' This means:
- Under the Colorado Contract to Buy and Sell, a buyer's 'closing cost' objection typically covers:
- Under the Colorado Contract to Buy and Sell, which party typically pays the closing costs associated with the buyer's new loan?
- Under Colorado law, a contract to purchase real estate must be in writing to be enforceable under the:
- In Colorado, which of the following best describes 'specific performance' as a contract remedy?
- In Colorado, the 'Closing Instructions' form used in real estate transactions serves to:
- In Colorado, the 'Loan Objection Deadline' in the Contract to Buy and Sell allows the buyer to terminate if:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →