Colorado Real Estate Forms Home Buyers Should Know

In Colorado, real estate is done both in person and on paper. Every home buyer should get familiar with the documents you’ll be using throughout the home buying process. Let’s take a look at the several types of Colorado real estate forms, which are standardized by regulators in the state.

The Colorado Real Estate Commission standardizes most of the common contract forms in use in Colorado. Real estate agents are required to use standard forms for these parts of the home buying and sell process:

Colorado real estate forms include:

Real estate agency contracts
Purchase contracts
Seller’s property disclosures
Lead-based paint disclosure
Lender documents including the loan application, good faith estimate, appraisal, note, deed of trust
Home inspection reports
Title commitment
Settlement statement

Contracts that Define the Relationships with Real Estate Agents

Colorado defines the legal relationships between buyers, sellers, and real estate agents. The state defines the roles that seller’s agents, buyer’s agents, and transaction brokers are allowed to fulfill in any home sale. For more, see our guide to the many differences between buyer and seller agents.

The Colorado state forms include:

Buyer agency or transaction broker agency agreements: This is a Colorado form that establishes a buyer agency relationship between a real estate agent and a home buyer.
Listing agreements for seller’s agents or transaction brokers: This is a Colorado real estate form that establishes the relationship between the home owner who is selling their home with the real estate agent who will help them to sell it. See more about seller’s agents and transaction agents.

The Home Purchase Contract

Colorado standardizes the form that establishes a home purchase contract between the buyer and seller. Real estate agents are required to use this form, though it is often modified to reflect the actual terms of the agreement.

Documents Related to Home Inspection

Once under contract <LINK>, Agents for Home Buyers advises all our buyer clients to have a professional home inspection.

Most of the inspectors we work with will produce a detailed written report on the defects and concerns they have with the home. They also create a longer, descriptive report with additional information on the home. This might include the type and age of the furnace and the amount of insulation in the home.

The state has provided a standardized form used to outline the Buyer’s objections concerning defects in the property. Reaching resolution on these objections between Buyer and Seller is part of the home purchase contract negotiation and is the next step toward Getting to Closing.

The state of Colorado also requires sellers to use its forms to disclose information about the condition of the home. These include the seller’s property disclosure and the lead-based paint disclosure. There’s a lot more to consider before buying a home in the Boulder-Denver area.

Mortgage Lender Documents

There are several forms that you’ll use in working with lenders, and these are highly standardized.

Loan Application: Early in the home-buying process, you’ll run into the Loan Application form and the lender’s Good Faith Estimate. These are both lender documents. The application form requires little explanation.
Good Faith Estimate: The good faith estimate is the lender’s attempt to give you a reasonable estimate of all the costs involved in purchasing a property. This does not necessarily include the price of the home but is a statement of all the associated costs and fees involved in financing a home purchase including the lending process. For most buyers, these costs are paid as part of the mortgage.
Appraisal: To determine whether the sales price is reasonable, the lender will hire an appraiser. The appraiser will do an evaluation of the value of the property, called an appraisal. The appraisal is an estimate of the fair-market price of a specific home based on comparable sales prices of other properties on the market.
Note and Deed of Trust: At closing, assuming you need to get a loan to purchase your property, you’ll sign a small mountain of paper. The Note and Deed of Trust are among the most important because they outline the terms of your contract with the lender.

Title Documents

The home title is a legal document specifying who owns and can use the property.

In Colorado you will encounter two title related documents in almost every real estate purchase.

Title Commitment: The title company issues a Title Commitment. This document outlines the terms under which they will insure the Buyer’s ownership or “title” to the property. If you are buying a single-family home, not a condo or townhome, the lender may require a survey of the property. A survey indicates the location of the property boundaries and any improvements such as the home, garage, decks, and so on.
Settlement Statement: And, finally, prior to closing, the title company will prepare a balance sheet for you. This shows all the charges associated with the purchase of the property; (e.g., cost of the property, lender fees, etc.) and all the money coming in to allow the closing to occur (e.g., the loan, your earnest money deposit, a tax credit from the seller, etc.). This balance sheet is called a Settlement Statement.

Next Steps in Buying a Home in Colorado

Contact Agents for Home Buyers! Lindsey and Danielle can help you navigate the home buying process to find a great home you will love. It’s what we have been doing as buyers agents for 25 years in Boulder County, Jefferson County, Broomfield, Larimer County, and nearby.

Step 1: Educate Yourself About the Home Buying Process
Step 2: Form Your Team of Real Estate Professionals: Mortgage Broker and Buyer Agent
Step 3: Set Realistic Goals for Your Home Search
Step 4: Beware the MLS and Online Real Estate Databases
Step 5: Begin a Focused Home Search
Step 6: Craft Your Home Purchase Offer
Step 7: Negotiate the Contract
Step 8: Colorado Real Estate Documents and Forms
Step 9: Home Loans and Financing
Resources: Home Buyer Assistance Programs