Home Buying in 80005>Question Details

Milana, Home Buyer in Denver, CO

What happens after an offer is accepted by the seller?

Asked by Milana, Denver, CO Fri Apr 25, 2008

Who stores the good faith deposit?
Where does the title company come in? Do real estate lawyers draft contracts?
We just moved here from another state so I am curious.
TIA

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Answers

9
Very important! Make sure you have a fully executed (signed) document and that you understand all of the terms of the agreement. Do not proceed until you are comfortable that you understand exactly what you have committed to do, and the seller's commitment to you. Many times we feel rushed to sign here, sign there, and not ask questions. Stop the process until you have an agreement that you understand and commit to completely fulfill. My closing rate from contract to closing is 100%, I haven't had a contract fail to close in several years. Sherry H. in Charlotte, NC
2 votes Thank Flag Link Fri Apr 25, 2008
In Colorado, real estate agents (and Realtors, members of the National Association of Realtors) can fill out a standard contract for you. In 99% of cases this will serve you just fine for a residential property (condo/townhome/single family house). A buyer's agent or transaction broker (both are "real estate agents") can help you look for a property and help you purchase it and their fee is usually paid by the seller. Personally I've never seen a situation where the seller did not pay for the buyer's agent or transaction broker as long as it's in the MLS.

Once you have a signed, accepted contract the earnest money (or good faith deposit) is held by either a title company or the listing agent's firm and this will be known to you before you present your offer. The title company will do the title work of course but 99% of the time will also handle the closing of the transaction and loan closing.

I'm sure the process may be different where you lived before. I think it's fairly simple here but I'm glad you asked!

Feel free to contact me with any further questions.

Best Regards,

Jenny Lane
1 vote Thank Flag Link Fri Apr 25, 2008
Milana,

In Colorado we have Agency Agreements. The best way to proceed in a purchase is with the help and guidance of a Buyer's Agent. He works for you and the seller pays his commission. His first duty should be to have a buyer's conference with you and explain all of these questions and more to your satisfaction. The 'Earnest Money' deposit is held by either the listing broker's office or a specified title company. Once under contract, the contract is sent to your lender and to the title company for processing in preparation for the closing which is usually about 30-45 days from signing. The Buyer's Broker will draft the contract here in Colorado under almost all circumstances. It is rare that lawyers get involved in this, but they can if you do not have a Buyer's Agent. I just noticed that this is an older question, but you are not the only one 'curious'. All the best.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat Jan 26, 2013
The earnest money deposit is held by a Third Party company (the title company) during the transaction and then it is credited back to the buyer at closing, unless there is a circumstance during the transaction that would cause the buyer to loose it. Title companies are a big part of the transaction from day 1 assuring the buyer the title is free and clear of all unpaid liens, etc. all the way to the final signing. Typically, a Realtor draws the contract on behalf of their client, but lawyer review is always an option. If I can be of any help, let me know.
0 votes Thank Flag Link Wed Jan 23, 2013
FIVE YEAR have gone by!!!!!!
0 votes Thank Flag Link Tue Jan 15, 2013
Milana,

Did you hire an agent to represent you? that should be the first thing you do! Your agent should explain all of this to you on the contract and dates.
After the seller accepts depending on the contract is where the money is held ( All can be negotiated)
This is not like back East we do not usr lawyers as the agents draw up the contracts on a Colorado Approved for, BUT you can have them looked over by your lawyer and should if you feel that you need to.
Title company can be decided by the buyer or the seller and that can be in your contract as well. They do most of the research the lawyers do back east. If you have questions call any time! 303-949-9433
0 votes Thank Flag Link Tue Jan 15, 2013
Either the title company or the real estate office deposits the good faith money. The MLS listing information sheet tells you where it goes. The title company presents the Buyer with the community covenants as well as all the actions/records for that address. Generally, the Colorado Association of Realtors approved contracts are used.
0 votes Thank Flag Link Mon Apr 28, 2008
Greetings Milana: Steps are taken through the home buying process-- and your Buyer's Agent, who represents you-- will make sure you understand each step. The earnest money is held by either the Listing Company or the Title Company. The home inspection is completed the first week after the transaction is under contract. Title Work is run- and the Commitment is issued within the first 4-10 days of being under contract. The Loan Officer appoints an appraiser to appraise the property. Loan is approved. Closing takes place. The Buyer's Agent or Transaction Broker (who represents you) will prepare the paperwork for you. If you choose not to work with a Real Estate Broker-- you can pay a Real Estate Attorney to draft the paperwork. However-- we represent Buyers for free. So- I would take advantage of that. (Seller pays us). I hope this clarifies things for you. For Home Lists and Community Reports-- you can sign up now at FindingTheHome.com. All the Best, Kathryn
0 votes Thank Flag Link Fri Apr 25, 2008
Milana:

Jenny did a great job of answering your question, but I wanted to add a couple of things.

One of the things different in Colorado than in many states, is that there is no "dual agency" in this state. Consequently, there are either Buyer's Agents or Transactions Brokers that can assist you with finding a house I wrote an article about representation in Colorado, and the article is posted on my web site.

http://www.kathytorline.com/3/W0000014887/P0000294996.htm

It's important for you to understand the different ways you can be represented.

Also, even though Realtors in Colorado are licensed to write contracts on approved Real Estate Forms, you can always seek legal advise on the contract.
Web Reference: http://www.kathytorline.com
0 votes Thank Flag Link Fri Apr 25, 2008
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