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So the seller is going to let the buyer withhold 10 LARGE and buy renter's insurance for 3 days when the possession has already been agreed to in writing in the purchase agreement? Good luck with that.
In Colorado, it is called a Post Closing Occupancy Agreement, and it is required by the state.
In Colorado, it is called a Post Closing Occupancy Agreement, and it is required by the state.
Therefore it is not "luck."
Since when is it a legal REQUIREMENT in Colorado... or anywhere?
"A post-closing occupancy agreement is when a seller retains occupancy of the property for up to 60 days after closing occurs. Per Jim Smith, Broker and Owner of Golden Real Estate, Inc., the tactic isn’t often used, but he and other brokers consider it an ace in the hole if navigated correctly."
Required by whom? Just because realtors are required to comply with their Realtor's Association rules doesn't mean it's a LEGAL REQUIREMENT that everyone must use. Realtor's are required to use all sorts of CYA (Cover Your Fanny) forms by their association, but that doesn't mean that it's a LEGAL REQUIREMENT that everyone must use under penalty of fine or imprisonment.
So again, where's the "Legal Requirement" for using that form?
Who would hold the escrow money in this situation? I can recall checking into something like that once and I found that title companies and attorneys weren't interested in getting involved in petty squabbles over what's clean or isn't clean, or whether the seller took the drapes out of the house when he should have left them and what that's worth, and so on. Of course, for the right price, an attorney will do almost anything that's legal, and some might not even be that particular on what they'll do.
I can't speak directly to title companies, because we use attorneys in NC. Attorneys don't like to hold escrow, but they certainly will. For 3 days, or such a rent-back, they're usually OK. They definitely don't like to (will balk) escrow for repairs to be performed post-closing, because it too-often involves the disputes you mention.
Disputes over drapes shouldn't matter, because the Buyer should be doing a walk-through before closing, and then reminding Seller (through the Listing agent): here's what conveys, here's what is supposed to go. Frankly, it also tells Buyer if Seller is really ready/preparing to move out before they go sign on the dotted line.
I'd also say - though I can't speak precisely to other states - this "can't close for a day because they have to verify something" ... I know that I would be clear on what this is. If I sell my home in the morning, my closing attorney is going to wire the attorney handling my purchase later in the day the funds after recording. Unless she's closing house B in the afternoon pushing against a recording or wiring deadline, there really shouldn't be an issue in closing both the same day.
Required by whom? Just because realtors are required to comply with their Realtor's Association rules doesn't mean it's a LEGAL REQUIREMENT that everyone must use. Realtor's are required to use all sorts of CYA (Cover Your Fanny) forms by their association, but that doesn't mean that it's a LEGAL REQUIREMENT that everyone must use under penalty of fine or imprisonment.
So again, where's the "Legal Requirement" for using that form?
I'm sure as a private Seller, you're allowed to use or not whatever you choose. Why, 2 mutually-agreeable parties could even conduct a sale on a handshake. Or less. It's really about signing at the closing table.
But have some grace when you're asking someone who's thinking about what would be a requirement for about 95% of transactions.
Required by whom? Just because realtors are required to comply with their Realtor's Association rules doesn't mean it's a LEGAL REQUIREMENT that everyone must use. Realtor's are required to use all sorts of CYA (Cover Your Fanny) forms by their association, but that doesn't mean that it's a LEGAL REQUIREMENT that everyone must use under penalty of fine or imprisonment.
So again, where's the "Legal Requirement" for using that form?
These are not Realtor forms - you would see that if you followed the link, they are state forms. See Chapter 7 of the Real Estate Manual
"Commission Approved Forms
Through the adoption and promulgation of the Chapter 7 Rules: Use of Standard Forms, it became compulsory for all real estate brokers licensed by the State of Colorado to use
Commission approved forms in most of their contracting. §12-10-403(4), C.R.S., grants the
Colorado Real Estate Commission statutory authority to promulgate standard forms for use
by licensees.
One of the major purposes of the rule is to help to insure broker compliance with the
Colorado Supreme Court Conway-Bogue decision. (See case summary in Chapter 10 –
Landmark Case Law) A second purpose is to help promote uniformity in contracting to the
end that the public is better protected. The privileges granted should not be abused by the real
estate broker.
These are not Realtor forms - you would see that if you followed the link, they are state forms. See Chapter 7 of the Real Estate Manual
"Commission Approved Forms
Through the adoption and promulgation of the Chapter 7 Rules: Use of Standard Forms, it became compulsory for all real estate brokers licensed by the State of Colorado to use
Commission approved forms in most of their contracting. §12-10-403(4), C.R.S., grants the
Colorado Real Estate Commission statutory authority to promulgate standard forms for use
by licensees.
One of the major purposes of the rule is to help to insure broker compliance with the
Colorado Supreme Court Conway-Bogue decision. (See case summary in Chapter 10 –
Landmark Case Law) A second purpose is to help promote uniformity in contracting to the
end that the public is better protected. The privileges granted should not be abused by the real
estate broker.
As Bo said, if a seller who is not represented by a real estate broker wants to do business on a handshake (or less), there's no law against it. And I would go even further and say that if the seller who IS represented by a broker decides that he doesn't want/need the form, he isn't going to jail for not using it. The broker may ask him to sign a release stating that he refused the broker's request, but he's not going to jail for not using a Real Estate Commission form.
There's a BIG difference between not complying with some association's procedures/rules and breaking the law. If a person is not a member of said association, then they can tell the association to "stick it" and suffer no consequences from the association because the association's rules do not control their actions.
As Bo said, if a seller who is not represented by a real estate broker wants to do business on a handshake (or less), there's no law against it. And I would go even further and say that if the seller who IS represented by a broker decides that he doesn't want/need the form, he isn't going to jail for not using it. The broker may ask him to sign a release stating that he refused the broker's request, but he's not going to jail for not using a Real Estate Commission form.
There's a BIG difference between not complying with some association's procedures/rules and breaking the law. If a person is not a member of said association, then they can tell the association to "stick it" and suffer no consequences from the association because the association's rules do not control their actions.
IF a Seller signs a listing agreement in Colorado with a Broker, the listing broker is OBLIGATED to use the correct form.
methinks thou protests too much.
I have helped dozens of attorneys buy and sell real estate and not one of them has refused to use the state forms.
We can be fined, censured, or have our license revoked. There is not a commission in the universe worth me losing my license.
IF a Seller signs a listing agreement in Colorado with a Broker, the listing broker is OBLIGATED to use the correct form.
methinks thou protests too much.
I have helped dozens of attorneys buy and sell real estate and not one of them has refused to use the state forms.
We can be fined, censured, or have our license revoked. There is not a commission in the universe worth me losing my license.
next...
Everything you've said for the last several posts has confirmed exactly what I'm saying. The Real Estate Commission's rules apply to YOU the realtor. They don't govern the actions of your clients or people who aren't using a realtor. Your clients may not object to using the forms, but there's nothing that the Real Estate Commission can do to them if they DON'T use the forms. Please re-read the last sentence.
How many times do I have to keep repeating this same truth for it to sink in to your cerebrum? You may have been a broker for 32 years (or whatever), but you don't seem able to grasp some basic concepts of whose actions are controlled by your real estate commission and whose aren't.
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