Frequently Asked Questions: How do you fill in the dates on a purchase contract?

FSBO Tips on Filling out the dates for Paragraph 3 of the Colorado Contract To Buy And Sell Real Estate (Residential) Form CBS 1-5-19

By: Michael Selinfreund, Esq.

Dated February 15, 2020

 

This article is intended for educational purposes and not as legal advice.  It is always advisable to seek the advice of a licensed attorney regarding the issues discussed in this article.  Judicial foreclosures are complex matters that require skillful attorneys experienced in handling them.

The Colorado Contract to Buy and Sell Real Estate (Residential) can be downloaded at no cost from the Colorado Division of Real Estate’s website:  https://www.colorado.gov/pacific/dora/division-real-estate-contracts-and-forms.  I have written a comprehensive article on preparing the entire contract that can be found at www.cherrycreektitle.com.  I have also made a video on the same subject.  You can find a link to it on the www.cherrycreektitle.com website or on the Cherry Creek Title Services YouTube channel.  This article is limited to paragraph 3.

Paragraph 3 contains many key dates and deadlines.  Below is how I would typically fill out this paragraph:

DATES, DEADLINES AND APPLICABILITY.

Title

Item 1: Alternative Earnest Money Deadline:  If the earnest money isn’t being paid concurrently with the contract, insert the date it will be paid here.  It should be within 24-48 hours.

Item 2: Record Title Deadline:  I recommend choosing a date 7-10 days after the contract acceptance date to give the parties time to select the title company; get them the contract, earnest money, payoff information, and any HOA information if applicable.  Plus, the title company needs time to do the title search and prepare and distribute the title commitment and related documents.

Item 3: Record Title Objection Deadline: I recommend choosing a date 3-5 days after the date selected          in Item 2.

Item 4:  Off-Record Title Deadline: I recommend using the same date as item 2.

Item 5: Off-Record Title Objection Deadline: I recommend using the same date as item 3.

Item 6: Title Resolution Deadline: I recommend using a date 3-5 days after the date selected for Item 3.

Item 7: Right of First Refusal Deadline:  First rights of refusal are rare in Colorado.  I’d fill this out as n/a.  If it applies, the seller can counter and also provide the deadline since there’s no point putting in a deadline shorter than what is actually provided in the language of the first right of refusal if one exists.  For example, all the existing owners in a complex may have 30 days to match the terms of your contract and usurp you as the Buyer.  So in that situation, you’d want to pick a date more like 40 days out to give the seller/association/management company time to comply with the terms of any existing first right of refusal which of course begins with notification to all parties possessing any such right, and that likely won’t happen overnight.

Owners’ Association

Item 8: Association Documents Deadline:  I’d choose a date 5-7 days after contract acceptance.  That’s plenty of time for the seller to get a full set of association documents from the property management company or association.  An organized seller will have all of those documents on-hand at the time they market their home.  If not, they should be able to procure them all from the management company within that 5-7 day time period.

Item 9:  Association Documents Termination Deadline: I’d choose a date 3-5 days after the date in #8.

Seller’s Disclosures

Item 10: Seller’s Property Disclosure Deadline:  I’d choose a date no more than 3 days after contract acceptance.  The seller should be ready to hand that to you along with the signed contract so same day as contract acceptance is not unreasonable at all.  Again, the Seller’s Disclosure Form is available for free from the Colorado Division of Real Estate website.

Item 11: Lead-Based Paint Disclosure Deadline:  Within 3 days of contract acceptance.  The seller should have this available immediately.

Loan and Credit

Item 12: New Loan Application Deadline:  Within 3 days of contract acceptance.

Item 13:  New Loan Termination Deadline: Within 3-5 days of contract acceptance.

Item 14: Buyer’s Credit Information Deadline:  3-5 days after acceptance date if applicable or n/a.

Item 15: Disapproval of Buyer’s Credit Information Deadline:  3-5 days after acceptance date.

Item 16: Existing Loan Deadline:  This will virtually always be “n/a”.  If it does apply, 3-5 days after acceptance date.

Item 17: Existing Loan Termination Deadline:  This will virtually always be Another “n/a”.  If applicable, 3 days after the date in Item 16.

Item 18: Loan Transfer Approval Deadline: Likely n/a; however, if applicable, 4 weeks after acceptance date.  Although an appraisal, survey and even a lender’s title policy may all be unnecessary, assumption approvals can still take significant time.

Item 19:  Seller or Private Financing Deadline:  10-14 days after acceptance.  If the seller is carrying back financing, read my article on the Cherry Creek Title Services, Inc. website entitled “Private Mortgages Post-TRID and Specific to Colorado.”   It is best to involve an attorney to at least draft the loan documents even if the seller has done 3 or fewer loans in the last 12 months.  I’m not a fan of laymen drafting loan documents and especially since 2008.  Both Colorado and Federal laws impose strict restrictions on owner carries.  Always consult an attorney knowledgeable regarding owner carry loans post Dodd-Frank and in compliance with all Federal and Colorado laws.

 Appraisal

Item 20: Appraisal Deadline:  Within two weeks of contract acceptance.

Item 21: Appraisal Objection Deadline: Within 3 days of the date in Item 20 is reasonable.

Item 22: Appraisal Resolution Deadline: Within 3 days of the date in Item 21 is reasonable.

Survey

 Item 23: New ILC or New Survey Deadline: Within 10-14 days of contract acceptance.

Item 24:  New ILC or New Survey Objection Deadline:Within 3 days of the date in Item 23 is

reasonable.

Item 25: New ILC or New Survey Resolution Deadline:  Within 3 days of the date in item 24 is

reasonable. 

Inspection and Due Diligence

 Item 26: Inspection Objection Deadline:  As with all the recommended dates for appraisal, survey or inspection deadlines, knowing how long these professionals will take to complete their tasks is obviously advantageous in filling out all of these dates.  I am choosing dates that work in the majority of circumstances and certainly can be countered by the Seller or amended later.  With that said, I’d expect the inspector to complete the inspection within 7 days of contract acceptance and provide the report within 2 days of completing the inspection at the most.  So, choosing 10 days from contract acceptance for the inspection deadline would be reasonable.

 Item 27: Inspection Termination Deadline: Within 3 days of the date in item 26 is reasonable.

Item 28: Inspection Resolution Deadline:  Within 3 days of the date in item 27 is reasonable.

Item 29: Property Insurance Termination Deadline:  Within 5-7 days of contract acceptance.

Item 30: Due Diligence Documents Delivery Deadline: Within 5-7 days of contract acceptance.

Item 31: Due Diligence Documents Objection Deadline:  Within 3 days of the date in item 30 is

reasonable.

Item 32: Due Diligence Documents Resolution Deadline: Within 3-5 days of the date in item 31 is

reasonable.

Item 33: Conditional Sale Deadline:   Entirely up to how long the seller is willing to wait for the buyer’s home to sell.

Item 34: Lead-Based Paint Termination Deadline:  Within 3 days of the date in item 11.

 Closing and Possession

Item 35: Closing Date:  Obviously negotiable.  Typically, 4-6 weeks from contract acceptance.

Item 36: Possession Date :  When I purchase, I like possession on the “date of delivery of deed”.  I do a pre-closing walk through the day of the closing so I see what I’m actually getting, and I provide for such a walk-through to take place in the Additional Provisions paragraph (paragraph 30).  Many times the seller needs something like “3 days after delivery of deed” to move out.  They want to make sure the house actually closes before moving.  However, many a buyer has been disappointed with the condition/cleanliness of homes delivered after the seller has received their money, and although it rarely happens, some sellers actually do not vacate timely and must be evicted.

Item 37: Possession Time:   Entirely up to the parties.  If possession is on the date of delivery of deed, I’m going to choose a time that’s an hour after the closing time.

Item 38: Acceptance Deadline Date:   I usually preferred to not pressure people while not giving them so much time they can go use your offer as leverage with other potential Buyers.  1-2 days is common.

Item 39: Acceptance Deadline Time:  5:00 p.m. is a nice time to choose for this blank.

 

Visit www.cherrycreektitle.com to view numerous articles I’ve written primarily on Colorado real estate legal topics and many are available in video form at the Cherry Creek Title Services YouTube channel.