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.

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

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

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.

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