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Real Estate Brokerage Contract Colorado Form

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					    New Laws Mean New Forms – Changes to the Colorado
         Real Estate Commission Approved Forms


                                              2011

                 COLORADO REAL ESTATE
                   COMMISSION FORMS

                                 (Adopted 8-3-10)
                                                 By



                           Kent Jay Levine, Esq.


                                    September 6, 2010




    Kent@kent-law.com - www. kent-law.com



Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 1
      New Laws Mean New Forms – Changes to the Colorado Real Estate
                     Commission Approved Forms


                                                2011

         COLORADO REAL ESTATE COMMISSION FORMS

                                      (Adopted 8-3-10)
                                                  By

                                     Kent Jay Levine, Esq.


I.      INTRODUCTION

      2010 continues the “trend” that new laws mandate changes to the
Commission approved forms. Legislation enacted this last legislative session
(2010) requires the Contract to Buy and Sell Real Estate and other forms to be
revised again. The revised Contracts and other form changes made by the
Commission on August 3, 2010 will become mandatory January 1, 2011. The
most significant modification to the forms involve the creation of 5 separate
contract forms:

        1.      CBS1 - Contract to Buy and Sell Real Estate (Residential)
        2.      CBS2 - Contract to Buy and Sell Real Estate (Income-Residential)
        3.      CBS3 - Contract to Buy and Sell Real Estate (Commercial)
        4.      CBS4 - Contract to Buy and Sell Real Estate (Land)
        5.      CBSF1- Contract to Buy and Sell Real Estate
                (Colorado Foreclosure Protection Act)

        The following legislation required changes to the forms.

1. H.B. 10-1133         Amendments to the "COLORADO FORECLOSURE PROTECTION
ACT".
 Governor signed 6-7-10.



Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 2
Effective Date 1-1-11. The Amendments change the definition of an “Equity
Purchaser.” Under the new definition, if an “investor” or non-owner occupant
purchases a residence that is in foreclosure or the Buyer has actual or constructive
knowledge that the Seller is 30 or more days delinquent on a mortgage loan, the
CFPA applies (unless exempt). No longer is there a requirement that the Buyer be
in the business of buying properties in foreclosure. A major “exemption” was
created. If the Seller is underwater, i.e., a Short Sale transaction and a Short Sale
Addendum approved by the Commission is part of the contract, the CFPA does not
apply. The basis for creating this exemption is that there is no “equity” for the
Seller to lose, thus the CFPA should not and does not apply (as of 1-1-10) in such a
transaction.

      These changes required modifications to the Contract to Buy and Sell and
the Seller Listing contract. The Amendments also modified the “all bold print”
requirement.

2. H.B. 1288 – Commercial Real Estate Brokers Commission Security Act
(Brokers’ Lien act)
 Governor signed 3-20-09.

Effective Date 8-11-10. The Act grants the Broker a right to a lien against the
property when not paid in a commercial leasing transaction (if there is a written
listing or agreement specifying the fee to be paid to the Broker). The proposed
change to the Listing Contract (Exclusive Right-to-Lease) form was to have an
alert to the owner of this potential. The Commission voted not to include any
mention of the Broker’s lien or “waiver” in the Listing Contract. Due to the Act
allowing a “waiver” of the lien if the parties agree on “acceptable consideration”
for a prospective waiver, it is anticipated that this topic will enter into the
discussions between a sophisticated or knowledgeable owner (or counsel) and the
commercial broker seeking to obtain a listing to lease the owner’s property (despite
the absence of any mention within the Exclusive Right-to-Lease).

3. H.B. 09-1207 – Concerning Procedures To Enforce A Lien Related To Real
Property.
Governor signed 4-22-09
Effective Date 9-1-09, 1-1-10

4. H.B. 10-1249 - Concerning Expedited Residential Foreclosure Sales
Governor signed 4-29-10.
Effective Date 4-29-10 (Effective upon enactment).

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 3
       The Act (H.B. 1207) amended the foreclosure statutes, 38-38-100.3, C.R.S.,
especially the definition of “publish” and correctly changed “advertisement” to
“legal notice” (NED). This coupled with the Act entitled “Expedited Residential
Foreclosure Sales” warranted a further review of the Deeds of Trust, most
importantly removal of specifying the number of publications required (i.e., not
less than 4 times really means 5 publications), which is altered if the Lender
proceeds under the Expedited Residential Foreclosure Sale procedure, if
applicable.

    The following revised, new and repealed forms were adopted by the
Commission at its August 3, 2010 Rule Making and Public Hearing.


Listing Contracts

        Listing Contracts
1.      Exclusive Right-to-Sell Listing Contract                 (Revised)

2.      Exclusive Right-to-Buy Contract              (Revised)

3.      Exclusive Right-to-Lease Listing Contract                  (Revised)

4.      Exclusive Tenant Contract            (Revised)

        Sales Contracts
5.      Contract to Buy and Sell Real Estate              (Repealed)

6.      Contract to Buy and Sell Real Estate (Residential) (New)
7.      Contract to Buy and Sell Real Estate (Income-Residential) (New)
8.      Contract to Buy and Sell Real Estate (Commercial) (New)
9.      Contract to Buy and Sell Real Estate (Land) (New)
10.     Contract to Buy and Sell Real Estate (Colorado Foreclosure
        Protection Act) (Revised)
        Addenda to Contracts
11.     Licensee Buy-Out Addendum to Contract to Buy and Sell Real Estate
        (Revised)

12.     Residential Addendum (New)


Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 4
13.     Source of Water Addendum to Contract to Buy and Sell Real Estate
        (Revised)
        Exchange Addendum to Contract to Buy and Sell Real Estate

Lead-Based Paint Disclosures (Sales)
Lead-Based Paint Disclosures (Rentals)
Brokerage Duties Addendum to Property Management Agreement

14.     Short Sale Addendum            (Revised)

15.     Exclusive Brokerage Listing Addendum to Exclusive Right-to-Sell
        Listing Contract (Revised)
16.     Open Listing Addendum to Exclusive Right-to-Sell Listing Contract
(Revised)


      Disclosure Documents
Brokerage Disclosure to Buyer-Tenant
Brokerage Disclosure To Tenant
Brokerage Disclosure to Seller (REO and Non-CREC Approved Listings) Broker
Disclosure to Seller (Sale by Owner)
Definitions of Working Relationships

17.     Seller's Property Disclosure (All Types of Properties) (Revised)
18.     Seller's Property Disclosure (Residential) (Revised)

Change of Status
Square Footage Disclosure
Dual Status Disclosure

        Notice Documents
19.     Inspection Notice       (Revised)

20.     Inspection Resolution (NTC43R) (New)
21.     Inspection Notice (Colorado Foreclosure Protection Act) (Repealed)
22.     Notice to Terminate         (Revised)

23.     Notice of Cancellation (Colorado Foreclosure Protection Act) (Revised)
24.     Seller Authorization (Revised)

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 5
25.         Seller Warning (Colorado Foreclosure Protection Act) (Revised)
26.         Homeowner Warning (Colorado Foreclosure Protection Act) (New)

            Counterproposal
27.         Counterproposal     (Revised)

28.         Counterproposal (Colorado Foreclosure Protection Act) (Repealed)
            Agreement to Amend/Extend Contract
29.         Agreement to Amend / Extend Contract              (Revised)

30.         Agreement to Amend / Extend Contract (Colorado Foreclosure
            Protection Act) (Repealed)
31.         Agreement to Amend / Extend Contract with Broker                   (Revised)

            Closings
32.         Closing Instructions    (Revised)

33.         Earnest Money Receipt       (Revised)


Closing Statement
            Deeds of Trust
34.         Deed of Trust (Due on Transfer-Strict) (Revised)
35.         Deed of Trust (Due on Transfer-Creditworthy) (Revised)
36.         Deed of Trust (Assumable-Not Due-on Transfer) (Revised)


      II.      NEW and REVISED FORMS

NOTE:      The forms included in this material are current through September 6,
2010. The forms and rules will be available electronically at the Colorado Real
Estate Commission's web site:

                    http://www.dora.state.co.us/real-estate/



Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222       9/6/10   Page 6
                A.      Contract to Buy and Sell Real Estate

                1.      CBS1 - Contract to Buy and Sell Real Estate (Residential)
                2.      CBS2 - Contract to Buy and Sell Real Estate
                        (Income-Residential)
                3.      CBS3 - Contract to Buy and Sell Real Estate (Commercial)
                4.      CBS4 - Contract to Buy and Sell Real Estate (Land)
                5.      CBSF1- Contract to Buy and Sell Real Estate
                        (Colorado Foreclosure Protection Act)

Introduction.

       As noted above, the impetus to revisiting the Contract to Buy and Sell again
this year was primarily due to legislation mandating the change to the contract
form to reflect the Amendments to the Colorado Foreclosure Protection Act. The
Forms Committee, for some time, had been developing a Commercial version of
the Contract to Buy and Sell Real Estate. In doing so, a fresh look at the form,
how it looked, its content and flow or sequencing of its provisions was thoroughly
examined. As a result, while many of the provisions in the forms are identical to
last year’s version, a substantial reorganization makes it look totally new. We are
hopeful that this will make the form easier to understand and use. We took the
opportunity to clarify and fix some other provisions as well. As noted, while there
are benefits to simplify and only have one form of contract, many wanted to have
discrete forms. As a result, there are 5 versions of the Contract to Buy and Sell
Real Estate effective January 1, 2011.

       The form has “captions” or titles for the various parts of the form. The
respective items collected in the respective area will hopefully be more easily
found and will have a more natural progression. For example, many of the
“general” items were grouped together under “General Provisions”, toward the end
of the contract form.

      The CBS form has the following labels describing the various “parts” of the
contract:

I.      Agreement (§§1-4)
II.     Transaction Provisions (§§ 5- 9)
III.    Disclosure, Inspection And Due Diligence (§§ 10 – 11)
IV.     Closing Provisions (§§ 12 – 17)
V.      General Provisions (§§ 18 – 28)

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 7
VI. Additional Provisions and Attachments (§§ 29 – 30)
VII. Signatures §§ 31 – 33)

      The following Sections of the Contract to Buy and Sell Real Estate contain
substantive changes or clarification:


       1.    Section 2.3, Seller. Section 2, Parties and Property now identifies
both the Buyer and Seller, as it should. If the Broker preparing the Contract is the
Listing Broker, the Broker should have the correct name of the Seller who is in
title. If the Broker is working with the Buyer the Broker may: (1) contact the
Listing Brokerage (2) look on line - public records or, (3) review MLS as some of
the smaller MLS already display this information.

       2.     Section 2.2, Assignability. Whether the Buyer is or is not permitted to
assign the Contract without the consent of the Seller has been moved directly under
the identification of the Buyer in Section 2.1.

      3.      Section 2.4.1, Fixtures. Items attached as “fixtures” after the date of
the Contract are included as part of the Purchase Price. For example, if a new
furnace, HVAC system, hot water heater, etc. were installed after the Contract was
entered into, they are nevertheless included in the Sale and Purchase Price.

       4.    Section 3, Dates and Deadlines. This Section reflects the new
sections affecting various deadlines; it groups related matters together. For
example, the Title Documents Deadline follows the Title Objection Deadline. The
Dates and Deadlines table also contains topic headings to more easily find the
particular deadline: Title and CIC, SPD, Loan and Credit, Appraisal, Survey,
Inspection and Due Diligence, Closing and Possession.

      5.     Section 4.2, Earnest Money. The language “is part payment of the
Purchase Price and” was removed. In the instance of a VA loan or other 100%
financed transaction, the Earnest Money Deposit is not applied to the Purchase
Price. In some computer generated contracts there is an inability to do a strike
through (plus the obligation to explicitly state was deleted in Additional
Provisions), if the Contract form is correctly filled out. Further, it would be
redundant of the Purchase Price and Terms table in Section 4.1. Accordingly, the
proper place to identify whether the Earnest Money is or is not applied to the
Purchase Price is in Section 4.1.


Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 8
       6.      Section 4.2.2, Return of Earnest Money. This new provision
specifically provides that if the Buyer is entitled to terminate (i.e., Inspection
Notice – to terminate or Notice of Termination) and does terminate the Contract,
the Earnest Money is to be returned to the Buyer. If the Buyer has not received the
return of the Earnest Money, the Seller is required to sign the Earnest Money
Release form and return the signed form (Earnest Money Release form) to the
Buyer within 3 days of the Seller’s receipt of the form. The Earnest Money Holder
(Section 32, 33 or the Closing Instructions require the Earnest Money to be
released within 5 days of receipt of a fully executed Earnest Money Release form.
(If there is a “dispute” over the Earnest Money Deposit, Section 24 will “preempt”
the return of the Earnest Money, and the Earnest Money Holder will continue to
hold the Earnest Money until the matter is resolved).

       7.     [The proposed Section 4.3.3, Alternative Loan Funding Deadline was
voted to be removed by the Commission prior to adoption of the forms]. This
proposed provision was another attempt to address the failure of the Buyer’s
Lender to fund the loan in a timely fashion (by Closing to allow disbursement) as
required by the Contract. This has become a more common problem than not. The
parties can still elect to allow an “alternative” funding deadline, i.e., the transaction
could close in escrow and if the loan proceeds arrive by the “alternative” funding
deadline (likely to be 1 - 3 days after Closing), the transaction can still close. In
such case, the Seller will be entitled to the amount specified for the “delayed
funding fees” in the Contract. The proposal contained a reminder that in a given
instance the parties may need to provide a different deadline for possession of the
Property (as the Alternative Funding Deadline) did not automatically extend the
date and time of possession. The Commission recognized that Buyer and Seller
may, if they both agree, enter into an Agreement to Amend/Extend Closing when it
appears that additional time is needed for the lender to fund the new loan for the
Buyer.

      8.     Section 4.4, Seller Concession. Section 4.4 was clarified that if the
lender imposes a limitation on the amount the Seller may contribute to the Buyer
for Closing Costs, points, etc., the amount of the Seller Concession is the lesser of
the amount of the Seller Concession in the Contract or the amount allowed by the
Lender, but not in excess of the Buyer’s Closing Costs.

       9.     Section 4.7, Seller or Private Financing. This Section was updated to
reflect the three revised Commission approved Deeds of Trust; e.g. TD72-8-10.



Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 9
       10. Section 5.1, Loan Application. The provision now expressly states
that the Buyer must exercise reasonable efforts to obtain the Buyer’s loan.

       11. Section 7.2, Copies of Exceptions. While minor, it illustrates the
effort to make the Contract more understandable. The deadline to request copies
of the Exceptions was renamed for “Document” Request Deadline to “Exceptions
Request Deadline.”

       12. Section 7.4.2, Common Interest Community Disclosure. As required
by the rule set forth in §38-35.7-102, C.R.S., this provision is now in Bold (and in
all capitals as printed in Section 102).

       13. Section 7.4.5, (CIC) Conditional on Buyer’s Review and Section 8.2,
(Title Objections) Matters Not Shown by the Public Records and Section, removed
the requirement that an “objection must be “signed”. These Sections now are
made consistent with the other “objection” sections. The important requirement is
to assure “Notice” is timely and clearly given. Ideally the Commission approved
form for Notice to Terminate will be used to assure clarity in stating the objection
and that the Buyer has elected to terminate the Contract.

       14. Section 10.2, Inspection Objection Deadline. This Section now has a
lead-in sentence noting the property is sold “AS IS, Where Is and With All Faults
Existing”. It was added to alert the Buyer to have the Property inspected. Most
transactions involving the use of the CREC forms are for existing resales, not new
construction, thus a Buyer must assure the Property will work for their wants and
needs. The provision was also clarified by adding “service to the Property” as a
basis for a Buyer, if acting in good faith, to terminate the Contract if any of the
“service” is not acceptable to the Buyer. In light of the importance of
communication (broad band) and the importance to many of having a high speed
internet connection, this was added, as well as clarifying that utilities, heating,
plumbing, etc. are proper areas for a Buyer to base an objection.

      15. Section 10.2, Inspection Resolution Deadline.            The “one day
following” Inspection Resolution Deadline was removed. This change avoids a
Buyer betting that the deal could be sweetened by raising various objections to the
condition of the Property and seeking further concessions or reduction of the
Purchase Price. Rather, the contract will TERMINATE if (1) the Buyer timely
submits an Inspection Objection (including a Notice to Correct) and (2) the parties
have not entered into a written Inspection Resolution by the Inspection Resolution


Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 10
Deadline; and (3) the Buyer did not submit a withdraw, in writing, the Notice to
Correct before the Inspection Resolution Deadline.

        16. Section 10.6, Due Diligence – Physical Inspection. The most
significant modification of the CBS forms, after separate forms for the different
types of transactions (residential, income-residential, commercial and land), is the
addition of “Due Diligence” provisions. Section 10.6 now makes it clear that any
objection to the physical condition of the Property or Inclusions is to be made
pursuant to Section 10.2 (Inspection) and be made no later then the Inspection
Objection Deadline as specified in Section 3. Some of the key areas involved in
inspecting and investigating the physical aspects of a commercial property such as
roof, walls, structural integrity, electrical, plumbing, HVAC, other mechanical
aspects of the Property and environmental (Phase I and Phase II Environmental
Site Assessments) are specified in the CBS 2, 3 and 4 forms. CBS1, Residential
and CBSF1 – Colo Foreclosure Protection Act omits reference to Environmental
Assessments). While the form has a “blank” to specify something other than Phase
1 or Phase II, caution should be exercised if the purpose is to protect the Buyer so
the Buyer would qualify under the “Innocent Purchaser” defense to CERCLA
liability, as the assessments must qualify under the standards for for Environmental
Site Assessments as noted in Section 10.6.

      In the CBS 2, 3 and 4 (Income-Residential, Commercial and Land) forms
now include two other “objections”, i.e., Environmental Inspection Objection
Deadline and ADA Evaluation Objection Deadline. In these forms, Section 3 has
separate line items (as does the Counter Proposal and Agreement to Amend/Extend
Contract) to provide a different date from the other Inspection or Due Diligence
Documents Objection Deadlines).           This was needed, especially in the
Environmental area, as quite often such assessments need additional time allowed
to schedule and accomplish these undertakings.

        17. Section 10.7, Due Diligence – Documents. The Documents to be
provided by the Seller to the Buyer as required in the new CBS 2, 3 and 4 is a good
starting point for most commercial transactions. The Section enumerates in detail
a list of various documents the Seller must produce (if the documents exist and the
Seller has these documents):
     10.7. Due Diligence—Documents. Seller agrees to deliver copies of the following documents and information (Due
Diligence Documents) to Buyer on or before Due Diligence Documents Delivery Deadline (§ 3) to the extent such Due
Diligence Documents exist and are in Seller’s possession:
           10.7.1. Copies of all contracts relating to the operation, maintenance and management of the Property;
           10.7.2. Copies of the Property tax bills for the last ______ years;



Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222                9/6/10        Page 11
              10.7.3. As-built construction plans (original and subsequent construction) to the Property and the tenant
improvements, including architectural, electrical, mechanical, and structural systems; engineering reports; and permanent
Certificates of Occupancy, to the extent now available;
              10.7.4. A list of all Inclusions to be conveyed to Buyer;
              10.7.5. Operating statements for the past ______ years;
              10.7.6. A rent roll accurate and correct to the date of this Contract;
              10.7.7. True and correct copies of all current leases on the Property (Leases), or other occupancy agreements if not
delivered earlier under § 8.2;
              10.7.8. A schedule of any tenant improvement work Seller is obligated to complete but has not yet completed and
capital improvement work either scheduled or in process on the date of this Contract;
              10.7.9. Copies of all insurance policies pertaining to the Property and copies of any claims which have been made
for the past ______ years;
              10.7.10. Soils reports, Surveys and engineering reports or data pertaining to the Property (if not delivered earlier
under § 8.2);
              10.7.11. Any and all existing documentation and reports regarding Phase I and II environmental reports, letters, test
results, advisories, and similar documents respective to the existence or nonexistence of asbestos, PCB transformers, or other
toxic hazardous or contaminated substances, and/or underground storage tanks and/or radon gas. If no reports are in Seller’s
possession or known to Seller, Seller shall warrant that no such reports are in Seller’s possession or known to Seller;
              10.7.12. Copies of any Americans with Disabilities Act reports, studies or surveys concerning the compliance of the
Property with said Act;
              10.7.13. All permits, licenses and other building or use authorizations issued by any governmental authority with
jurisdiction over the Property and written notices of any violations of any such permits, licenses or use authorizations, if any; and
              10.7.14. Other Documents: ____________________________________________________________________.


Note: In a given transaction you may want to add to the documents required to be
produced by a Seller, if not already on the list of documents to be produced.
(CBS1, Residential and CBSF1 – Colo Foreclosure Protection Act omits the listing
of the various documents to be produced. Rather, a “blank” has been inserted to
allow specification of particular documents needed from a Seller. For example,
engineering reports, builder plans, structural plans when work was previously done
to rectify a structural problem, etc.).

       18. Section 10.8, Due Diligence Documents Conditions. The third leg of
the Due Diligence provision is that of making the contract conditional on the Due
Diligence Documents under 10.7 and the Zoning and restrictions on use of the
Property. If the Buyer wants to terminate based on such Zoning or documents, the
Buyer may do so, provided timely written notice is supplied. The Buyer is given
the right to waive such condition and close the transaction. The Physical
Inspection deadline is still controlled by the Inspection Objection Deadline of 10.2
(and the date or deadline specified in Section 3).

       19. Section 10.15, Existing Leases; Modification of Existing Leases; New
Leases. This provision appears in CBS3, Commercial, as 10.15, in CBS4, Land, it
is in Section 10.10; it is in Section 10.9 in CBS2, Income-Residential. There is no
corresponding provision in the CBS1, Residential and CBSF1 forms, Colorado
Foreclosure Protection Act, as these types of properties are normally owner
occupied. If the Property is residential and is leased to a tenant, and the lease will
continue, one should review and perhaps include it or something akin to it, or use

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222                               9/6/10          Page 12
CBS2, Income-Residential that contains this provision. This section prohibits any
concession, amendment or other change from the lease or other writing supplied to
the Buyer (without the Buyer’s written consent) to avoid a sweet heart arrangement
of the tenant renting the Property for an extreme $1.00 a year for the next 50 years,
or any other amount or duration that is done without the Buyer’s written
agreement. One may need to set time limits or modify this provision when dealing
with Property that is currently trying to lease up existing vacant space (or
renewals). One would want a Buyer to be crystal clear when the Buyer must
object to a new, amended or modified lease, and if not objected to, the unit or
Property may be leased without further objection to the terms submitted to the
Buyer. This specification will then avoid raising a question whether the Buyer
“withheld or delayed” supplying Buyer’s consent.

       20. Section 11, Tenant Estoppel Statements. This Section appears in
CBS2, Income-Residential, CBS3, Commercial, CBS4, Land, as Section 11. There
is no corresponding provision in the CBS1, Residential and CBSF1 forms,
Colorado Foreclosure Protection Act, as these types of properties are normally
owner occupied. This provision is new to the CBS form. It contains the normal
contents that the lease attached is the lease between Landlord and Tenant, the
periodic (monthly) rent, no default has been committed by Landlord, the start date
of the Lease, Termination date, any prepaid rent, concessions by the Landlord and
security deposits. Failure to provide the Estoppel Statement as required or if the
Estoppel Statement is unsatisfactory to the Buyer, Section 11.3 permits the Buyer
to terminate the contract or waive any unsatisfactory Estoppel Statement.

       21. Section 11, Colorado Foreclosure Protection Act. This Section
dealing with The Colorado Foreclosure Protection Act (Act) appears in CBS1,
Residential, at Section 11; in CBS2, Income-Residential, the provision is at Section
10.14; and in CBSF1, Colorado Foreclosure Protection Act, the provision is
located at Section 11. This was included as the Buyer may owner occupy one of
the units, i.e., Duplex, etc. It is not included in the CBS3, Commercial, and CBS4,
Land forms. This Section was revised due to the Amendments to the Colorado
Foreclosure Protection Act in H.B. 10-1133. As a result of the Amendments
becoming effective January 1, 2011, it was necessary to make the corresponding
change to Section 11 that describes when the Act generally applies. The Act
applies if: (1) the Property is residential, (2) Seller resides in the Property as
Seller’s principal residence, (3) Buyer’s purpose in purchase of the Property is not
to use the Property as Buyer’s personal residence. Note that the Amendments
changed the test of being in the business of buying foreclosure properties. One
does not have to be an experienced foreclosure investor under the Amendments. If

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 13
the Buyer is acquiring the Property for any purpose other than to reside in it as the
Buyer’s home, the Act is triggered. The last requirement is (4) the Property is in
foreclosure or Buyer has notice that any loan secured by the Property is at least
thirty days delinquent or in default. Note that the “notice” required is satisfied
whether the Buyer has actual knowledge or the Buyer is on constructive notice
(that the Seller is in default on the loan or loans against the Seller’s home).
However, the Amendments under H.B. 10-1133 made a major carve out from
coverage under the Act. Specifically, if the transaction is a Short Sale transaction
and a Short Sale Addendum (adopted by the Colorado Real Estate Commission) is
part of the Contract, the Act does not apply. Each party is further advised to
consult an attorney. CBS1, Residential and CBS2, Income-Residential forms
contain the above provisions to inform when the Act applies. If the transaction is a
“Short Sale” (with the Short Sale Addendum), as noted, the Act does not apply, so
the parties may use the normal CBS1, Residential form (with the Short Sale
Addendum attached).

      If the Act applies (requirements 1 through and including 4 are satisfied) and
the sale is not a “Short Sale”, then the parties must use CBSF1, Colorado
Foreclosure Protection Act. Section 11 of the CBSF1 form, in addition to the
above provisions, it also contains the Section 11.1 five conditions that must be
complied with:

   11.1.    Buyer and Seller agree to all of the following five conditions:
            11.1.1. Buyer will not assume any financial or legal obligations of Seller;
            11.1.2. There are no rental agreements or leases for the Property between Buyer
            and Seller;
            11.1.3. Seller does not have an option or right to repurchase the Property;
            11.1.4. A Notice of Cancellation and Seller Warning are attached to this
            Contract; and
            11.1.5.     No consideration shall be paid to Seller prior to the expiration of
            Seller’s right to cancel this Contract.

       The CBSF1 form also contains Section 11.2 that contains a blank to specify
the language the Seller principally speaks. If the Seller’s language is other than
English a separate form Homeowner Warning Notice (HWN-65-10) must be
translated in the Seller’s principal language (ONLY the Homeowner Warning
Notice, not the entire Contract to Buy and Sell Real Estate).

      Finally, the CBSF1 form contains Section 11.3, which prohibits
modification of the 5 conditions in 11.1, deletion or change of 11.2 or 11.3 causes
any contract to be “void”. The Colorado Foreclosure Protection Act, S.B. 06-71, is
now found in § 6-1-1101, et seq., C.R.S.
Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 14
      22.     Section 12, Closing Documents, Instructions and Closing. The prior
versions of the CBS contained various aspects of Closing, Closing Documents and
Closing Instructions in different areas of the contract form (e.g., prior 15.2 and
15.5). They are now consolidated under this Section 12. Section 12 is further
broken out in 3 distinct categories dealing with Closings.

        23.   Section 12.1, Closing Documents and Closing Information. This
provision is new in requiring the Closing Company (Title Company) to supply
Closing Documents by the Closing Documents Delivery Deadline in Section 3.
While applicable to commercial transactions, due to the changes in RESPA and
Truth in Lending, to avoid delays in Closings, it is necessary to get correct and
accurate Closing Documents in advance of Closing. It also informs the Buyer that
the Closing Company will need the Buyer’s lender’s figures and loan documents
for it (Closing Company) to furnish the Closing Documents. The prior provision
of the parties cooperating to supply any additional information and documents to
complete the transaction and sign “customary” or “reasonably required” documents
also continues. For example, the FIRPTA Affidavit.

       24.    Section 12.2, Closing Instructions. Specifying whether Closing
Instructions are attached or will be signed by the parties and which party is to
deliver the Closing Instructions to the Closing Company (Title Co.) is not
contained in §12.2. Previously this provision was in Section 15.5 of the prior
version of CBS.

      25. Section 12.3, Closing. This Section contains the same provision of
old Section 12 of the prior version of the CBS defining Closing as the delivery of
Deed from the Seller to the Buyer and specifying who will designate the hour and
place of Closing.

      26. Section 15, Closing Costs, Closing Fee, CIC Fees and Taxes. This
Section does not contain any new provision, but the title of the Section was
updated to show its new content. This Section now contains:
              15.1 Closing Costs. (Previously called “Good Funds”)
              15.2 Closing Services Fee.
              15.3 (CIC) Status Letter and Transfer Fee. This is the provision in the
CBS to be compliant with CCIOA that an Association specify dues, fees or
amounts owed to the Association. If the Association does not timely reply, it will
not be entitled to collect any amount in excess of the amount shown in the “Status
Letter” (if the Closing Company makes the written request at least 14 days prior to
Closing). 38-33.3-316 (8), C.R.S.; if the Association fails to submit any “Status

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 15
Letter”, the Association will not be entitled to assert any lien for the monies the
prior owner (Seller) may have owed.
             15.4 Local Transfer Tax. I.e., primarily the “resort areas” that still
charge a governmental “tax” if a sale or transfer of the property occurs.
             15.5 Sales and Use Tax. If the transaction includes taxable personal
property, this Section specifies who is responsible to pay the respective
governmental agencies their tax on the purchase of the personal property and prior
use of the personal property used in the business.

       27. Section 16.3, Association Assessments. A new acknowledgement by
the Buyer is now provided. “Buyer acknowledges that Buyer may be obligated to
pay the Association, at Closing, an amount for reserves or working capital.” Most
often the “Status Letter” from the Association gives direction from the Closer to
collect from the Buyer and remit to the Association or Management company a
specified amount for reserves or working capital as allowed in the CIC
Declaration.

       28. Section 19.2, Condemnation. For many years the Forms Committee
debated whether the form should contain a provision dealing with the impact on
the transaction if a condemnation proceeding resulted in a loss or “taking” of all or
part of the Property. The task force appointed by the Real Estate Section, in its
review of a draft of the form, recommended that the form contain a
“condemnation” provision. Accordingly, new this year is such a provision. It is in
all the versions of the CBS. It is a limited provision. It only applies when a
condemnation proceeding has actually been commenced. While the Seller is
obligated to make disclosure if there is a pending proceeding or notice of a
proposed taking “under threat of condemnation”, the provision only applies if a
proceeding or lawsuit has actually been commenced. The Buyer is entitled to
receive the proceeds attributed to the diminution in the value of the Property or
Inclusions taken or to be taken. In a given transaction it may be desirable to have
counsel add to this provision and address the matter in more detail and other
instances (such as a taking under threat of condemnation, etc.) that may impact the
transaction and Buyer or Seller. Many items are not spelled out in the abbreviated
provision. For example, which party is obligated to contest the matter, must they
object, who pays for the cost of the litigation, who has the right to decide whether
the award or proposed award (and its content) are acceptable or not. Is the Buyer
entitled or required to intervene, and many other aspects will need to be addressed
and agreed upon between the parties if a condemnation action is filed and the
Buyer wants to continue with the purchase and sale of the Property.


Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 16
       29. Section 21.2, Liquidated Damages, Applicable. The big change for
this Section is to make the remedy of “Liquidated Damages” automatic, UNLESS
the parties check the box in 21.1.1 for Specific Performance. This avoids a failure
to check either box. It is also reflective of the great majority of transactions where
the parties agree to the remedy of Liquidated Damages. It does allow the
flexibility to elect the remedy of Specific Performance should the parties so
choose.

       30. Signature Block – Electronic Address. The label “Email Address” has
now been replaced with “Electronic Address.” The parties may now specify any
particular address that they would like to receive electronic notification, whether
email, web address as an URL, etc.

      31. Section 32, 33, Broker’s Acknowledgments and Compensation
Disclosure. A new sentence was inserted (as the second sentence) to require the
Broker to return the Earnest Money, if the Buyer is entitled to its return, within five
(5) days of Broker’s receipt of the “written mutual instructions” (Earnest Money
Release) signed by all parties. A similar timing requirement is imposed for an
Earnest Money Holder who is other than a Broker, i.e., third party Closing
Company or Title Company. There is a limitation that the Earnest Money check
has “cleared” (“final payment” under 4-4-215, C.R.S.).


                B.      Agreement to Amend/Extend Contract (AE41-8-10)

      1.     Due to the rearrangement of the various Sections of the Contract to
Buy and Sell Real Estate, the Dates and Deadlines Section was revised which
required the Amend/Extend to be changed to coincide with the changed Section
numbers.

       2.    Further, the Amend/Extend was substantively changed by the creation
of 2 new columns. The first new column is entitled “No Change”; the second is
“Deleted” (the original column of “Date or Deadline” still remains). This was
done to avoid an accidental “deletion” of the substantive Section by insertion of
“N/A” (a common practice). Unfortunately, the completion with Not Applicable
or N/A, had the affect of deleting the corresponding provision in the CBS. To
avoid or minimize this each line will exclusively require checking or insertion of
the revised date or deadline in the respective column, now easily identified by Date
or Deadline, “No Change” or “Deleted”.


Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 17
NOTE: If the CBS was prepared on the contract form prior to January 1, 2011,
that is on CBS1-5-09, it is CRITICAL that the Amend/Extend form of 2009
(AE41-5-09) be used, NOT the new AE41-8-10 form as the Section numbers of
the old CBS form do not correlate with the new AE41-8-10 form.

                C.      Counter Proposal (CP40-8-10)

            The same changes to the Amend/Extend are reflected in the Counter
Proposal form including the changes to the Dates and Deadline table and adding
the two new columns to permit a check in the respective column of “No Change”
or “Deleted”; or insertion of the revised date or deadline in the first column.

NOTE: If the CBS was prepared on the contract form prior to January 1, 2011,
that is on CBS1-5-09, it is CRITICAL that the Counter Proposal form of 2009
(CP40-5-09) be used, NOT the new CP40-8-10 form as the Section numbers of
the old CBS form do not correlate with the new CP40-8-10 form.

                D.      Residential Addendum (RA33-8-10)

               This is a new form. It was created for a “mixed use” setting when a
form of CBS other than the “Residential” form was used. Take for instance, the
sale of a 360-acre parcel used as a farm. The Property contains several residences.
The predominant asset being sold and purchased is the land. Thus, the ”Land”
version of the Contract to Buy and Sell Real Estate would be used (CBS4-8-10).
Because of the residences on the Property, it will be necessary to address the
“residential” aspect of the transaction. Accordingly, the Residential Addendum
(containing the relevant provisions of the “Residential” Contract form is included
in the RA33. This permits use of the Land version of CBS without the need for
drawing a separate “Residential” version of the CBS.

                E.      Licensee Buyout Addendum (LB36-8-10)

              This form was updated with the current formatting modifications to
be consistent with the other forms and updated to reflect the updated Section
numbers of the Contract to Buy and Sell Real Estate.




Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 18
                F.      Short Sale Addendum (SSA38-8-10)

       The most significant modification to the Short Sale Addendum is the
insertion of “check boxes” to note whether Section 8.3 of the SSA38 form is
applicable or not. Section 8.3 is entitled “Additional Rights of Termination.” This
Section, if applicable, allows either Seller or Buyer to terminate the transaction so
long as it is done prior to the Lender’s approval of the Short Sale (i.e., Short Sale
Acceptance). Further revisions to this form consisted of formatting changes for
consistency in the signature block and other formatting modifications.

                G.      Source of Water Addendum (SWA35-8-10)

      A blank to specify the Well Permit number was added and clerical
formatting changes, e.g., signature block changes for consistency were made.

                H.      Seller Authorization (SA20-8-10)

       The Seller authorization form contains blanks for the Seller’s Social Security
 number (and formatting changes). It also uses the language under the various
 Federal statutes and regulations, including the FTC Privacy disclosure of “non-
 public information” (i.e., private information). Many lenders require all or a part
 of the Seller’s Social Security number within the consent for the lender to supply
 documents to the Listing Broker, assistant, transaction coordinator or title
 company before payoffs or other information to work up a Short Sale package to
 submit to the lender. There is a caveat that the lender must not supply the full
 Social Security number (as others beyond the Listing Broker may come in contact
 with these documents), thus due to the press of privacy and to minimize Identity
 theft or fraud, this limitation is stated. Other states already preclude sending
 documents with the Social Security number (electronically typically the
 documents must be encrypted) and other safe guards are put in place. It would be
 beneficial to review the FTC Red Flags Rule that has finally been implemented.

      This form was updated with the current formatting modifications to be
consistent with the other forms and updated to reflect the relevant provisions of the
Contract to Buy and Sell Real Estate with the new Section numbers of the CBS.




Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 19
                I.      Listing Contracts

     By and large there were not many changes made to the Listing Contracts.
The more important changes to the Listing Contracts consist of:

        1.      LC50-8-10 – Exclusive Right-to-Sell Listing Contract.

             a. Section 7.2.3, Holdover Provision. This provision was clarified and
                simplified. It is actually understandable now. It continues to allow
                the parties to select whether a Broker IS or IS NOT entitled to
                compensation if a “Sale” (contract) is entered into during the
                “Holdover Period”. In any event, the Broker, to be entitled to a
                brokerage fee (if the parties elect to allow such compensation), must
                (1) “Negotiate” with the Buyer (implicitly through the Broker
                working with the Buyer; and (2) submit the name of the prospective
                buyer to the Seller (“Submitted Prospect”) during the base Listing
                Period; and (3) a “Sale” occurs to the Submitted Prospect during the
                Holdover Period. (Rule E-12). This concept and basic language
                appears in the other Listing contracts containing a Holdover
                Provision.

             b. Section 10.5, Colorado Foreclosure Protection Act, outlines (as does
                the Contract to Buy and Sell Real Estate) when the CFPA applies or
                whether the transaction is excluded (primarily when the Buyer is to be
                an owner occupant or the transaction is a Short Sale transaction along
                with usage of the Short Sale Addendum adopted by the Commission
                on and after January 1, 2011).

             c. Section 18.2.1, Seller’s Property Disclosure form was clarified by
                deleting “the best of” (before “Seller’s current actual knowledge”).
                This change was done to be consistent with the revised SPD forms
                and to avoid any suggestion that the Seller is under an affirmative
                obligation to investigate the condition of the Property. It was never
                the intent of the form to require a Seller to investigate. Rather, the
                Seller must disclose those adverse facts about the Property the Seller
                then has actual knowledge, without any investigation.




Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 20
        2.      LC57-8-10, Exclusive Right-To-Lease Listing Contract.

               a. The changes made to LC 57, (Exclusive Right-to-Lease), were
        similar to the changes made to LC 50, (Right-To-Sell). For example, the
        term “transaction” was replaced with the words “the sale or lease”. This was
        done due to language in an Appellate decision this year noting that the Court
        found that “transaction” was not a defined term. To avoid any future
        confusion, we have now shared that such a “transaction” is the sale or lease
        of the Property (Premises).

              b.     Section 7.4, Extensions/Renewals/Expansions. The Section
        now allows the parties to specify whether the Broker is (or is not) entitled to
        be paid if the Tenant: Extends the Lease; Renews the Lease or if the Tenant
        Expands the Premises leased by Tenant.

               c.     [The proposed Section 7.7, Broker’s Lien was not included in
        the new Listing by the Commission’s vote]. The proposed new provision
        was to alert the Owner that H.B. 10-1288 allows a Broker to place a lien
        against the entire property that includes the leased Premises (in leasing
        commercial space) when the Owner does not timely pay the Broker. This
        provision also disclosed that the lien may be “waived”, so long as the Broker
        receives “acceptable consideration” (which is included in the statute). I am
        certain that future litigation or legislation will eventually define or address
        what “acceptable consideration” means in light of a “prospective” waiver.

               d. Section 16.2, Broker’s Right to Terminate Listing if the physical
        condition of the Premises is not acceptable to the Broker. For example,
        Broker became informed of a problem with the condition of the Premises, on
        site or off, the Broker may now terminate the Listing. This now brings the
        LC 57 (Right to Lease) consistent with the changes made to the LC50 (Right
        to Sell) several years ago).

        3.      Conforming changes were made to the other Listing Contracts.

                J.       Agreement to Amend/Extend Contract with Broker (AE42-
                         8-10)

             The changes to AE42, Amend/Extend with Broker were merely that of
        formatting and identifying the Listing Contract as now the “Seller” Listing
        Contract.

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 21
                K.       Closing Instructions (CL8-8-10)

        The Closing Instructions form, CL8-8-10 was revised to:

      1. Clarify that any disbursement made by the Closing Company must be
made, as called for, in the Contract (which would include amendments to the
Contract.

       2. Show the Closing Instructions now contains a corollary provision as set
forth in the Contract that the Earnest Money Holder must return the Earnest Money
within 5 days of its receipt of the executed Earnest Money Release (i.e., mutual
written instruction). During the revision process of DOI Rule 5-3-1, it was
envisioned that the contract between the Closing Company (Earnest Money
Holder/Title Co.), i.e., Closing Instructions, would set forth the time within which
the Earnest Money is to be returned.

                L.      Earnest Money Receipt (EM9-8-10)

      The revision to the Earnest Money Receipt now clarifies that the Earnest
Money shall be held in a “trust” account. With the advent of some third party
closing companies, it was necessary to assure the provision in the Contract be
confirmed for these providers. Real Estate Brokers and title companies must
already adhere to this requirement that the monies be held in trust.

               M.        Seller's Property Disclosure (Residential) (All Types)
                         (SPD19-8-10), (SPD29-8-10)

       The only two changes to the form were (1) to delete the term “to the best of”
(Seller’s current actual knowledge) to avoid any suggestion that the Seller must
“investigate” the condition of the Property prior to completing the disclosure form;
and (2) to add the phrase “Do any of the following conditions now exist:” in each
of the titles of the Parts (except for Part “A” and Part “B” that require disclosure of
“now” and “ever”, i.e., any past condition, whether corrected or not). This should
now avoid any “confusion” Sellers may have had to disclose a past problem, now
rectified.




Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 22
                N.      Inspection Notice (NTC43-8-10)

       The Inspection Notice was revised to provide that the Inspection Resolution
must occur prior to the Resolution Deadline (rather than 1 day following it),
requiring a written agreement to resolve the Notice to Correct (within the
Inspection Notice). If there is no such written resolution by the Deadline (or Buyer
withdraws the objection by that Deadline), the Contract, by its own terms
terminates. Formatting changes were made for consistency and clarity.

                O.      Inspection Resolution (NTC43R-8-10)

       This new form, Inspection Resolution, is to be used when the parties have
been negotiating back and forth on how to resolve the Notice to Correct following
a Buyer’s inspection of the Property. If the Buyer submits an Inspection Notice
and the Seller agrees or “counters” with a Seller’s Alternative that is acceptable to
the Buyer, the Inspection Notice form works just fine and there is no need to use
the Inspection Resolution. However, if there is a counter to the counter to the
counter, to avoid confusion of what the parties agreed the ultimate “resolution” to
be, the Inspection Resolution form allows the parties to set forth their “resolution”
in one place (thus avoiding the confusion created by the back and forth changes
between the Seller and Buyer and what the ultimate final agreement between the
parties was to resolve the inspection objections).

                P.      Notice to Terminate (NTT44-8-10)

       The Notice to Terminate form added additional areas from the Contract to
Buy and Sell that grant Buyer or Seller a right to terminate. The additional rights
of termination in the CBS were created with the amendments and changes made
concurrent with the form changes to the Notice to Terminate. The new termination
provisions for the Buyer consist of: Environmental Inspection Objection
Deadline and ADA Evaluation Objection Deadline (in § 10.6 of CBS2, 3 and 4),
Due Diligence (§ 10.8), Tenant Estoppel Statements (§ 11.2), Condemnation (§
19.3), Short Sale Addendum (SSA38-8-10) now set forth in the NTT44, although
that right existed in the changes made in 2008 (but previously not listed in the
NTT44 as it was not a right of termination set forth in the Contract to Buy and Sell;
as it is an Addendum to the CBS form, it was concluded that it would be best
stated in the Notice to Terminate). The Notice to Terminate includes the Short Sale
Addendum granting the Buyer a right to terminate under § 3.9 and § 8.3 (if


Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 23
applicable). The Notice to Terminate also includes the Short Sale Addendum
granting the Seller a right to terminate under § 3.8 and § 8.3 (if applicable).

                     Q.      Homeowner Warning Notice – Right to Cancel
                                        (HWN65-8-10)
                              (Colorado Foreclosure Protection Act)

      1.    This is a new form mandated by the Amendments to the Colorado
Foreclosure Protection Act, H.B. 10-1133.

      2.     It is required to be supplied to a Seller only if (1) the CFPA applies;
and (2) English is not the principal language of the Seller.

       3.   The form has a block for the statutory language to be translated into
the language of the Seller. The English version of the language states:



           THIS TRANSACTION INVOLVES IMPORTANT AND COMPLEX LEGAL
           CONSEQUENCES, INCLUDING YOUR RIGHT TO CANCEL THIS
           TRANSACTION WITHIN THREE BUSINESS DAYS FOLLOWING THE
           DATE YOU SIGN THIS CONTRACT. YOU SHOULD CONSULT WITH AN
           ATTORNEY OR SEEK ASSISTANCE FROM A HOUSING COUNSELOR
           BY CALLING:
           THE COLORADO FORECLOSURE HOTLINE AT 1-877-601-4673.


     4.    This form, if required to be given, MUST accompany the Contract
when submitted to the Seller.

       5.    The translation of the above provision is a major change from the
original provisions of S.B. 71 when the CFPA was created; rather than have the
entire Contract form translated (at a substantial cost to the Buyer), the H.B. 10-
1133 Amendments require only the statutory language to be translated.

                           R.       Seller Warning - Equity Skimming
                                           (SWF30-8-10)

       Only formatting changes were made to this form (and adding to the title of
the form “Equity Skimming” to differentiate it from the “Homeowner” Warning –
Right to Cancel. This form, if the CFPA applies, must accompany the Contract.

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 24
                 S.       Notice Of Cancellation (NCF34-8-10)
                               (Colorado Foreclosure Protection Act)

       Only formatting changes were made to this form. This form, if the CFPA
applies, must accompany the Contract (in duplicate). This is the form that the
Seller may use if the Seller wants to cancel the contract within the time frame
allowed by statute.

                 T.       Deeds of Trust (TD72-8-10, TD73-8-10, TD74-8-10)

      It is also anticipated that some reformatting will occur including numbering
the various Sections using the dewy-decimal type of system of number
implemented for the other forms.

        Section 18 of the Deeds of Trust forms was revised to eliminate any
specific enumeration of the number of times publication is required. This
modification was done to allow for an “Expedited Foreclosure” under H.B. 10-
1249, should one qualify and actually want to proceed under the new provisions.
Further, due to the changes made the last few years in the Foreclosure area, it is
likely we will see further changes in the next year as well. As a result, the change
merely requires the Lender to publish the number of times the law requires the
Notice to be published. H.B. 09-1207 removed stating the requirements for
publication from 38-38-101.3, C.R.S., and now merely references Section 24-70-
109, C.R.S., for such requirements of publishing “legal notice.” Thus, if the statute or
law changes, the requirements will change as well, but the Deeds of Trust will not need to
be revised to reflect the then latest time or number of publications. The new language
also picks up on the change from “advertise” to the more accurate “Notice” of the
foreclosure sale.

If Lender invokes the power of sale, Lender shall give written notice to Trustee of such election. Trustee shall give
such notice to Borrower of Borrower’s rights as is provided by law. Trustee shall record a copy of such notice and
shall cause publication of the legal notice as required by law in a legal newspaper of general circulation in each
county in which the Property is situated, and shall mail copies of such notice of sale to Borrower and other persons
as prescribed by law.


                 U.       F Rule Changes

        1. Rule F-7 (Approved Forms) is to be amended to reflect the new,
           modified and deleted forms as of 1-1-11.

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222                  9/6/10        Page 25
        2. Rule F-1 (Permissible Omissions) was updated to reflect the updated
           Section numbers that may be “Omitted” if not applicable.
        3. Rule F-3 (Addenda) was changed to require the “legend” that the form
           was not approved by the Colorado Real Estate Commission on only the
           first page of the Addendum. A new provision requiring production of an
           Addenda prepared by Broker’s counsel was inserted should the
           Commission make such a request of a Broker.

III.    CONCLUSION

            This paper highlighted the more significant changes to the Colorado
Real Estate Commission’s new and revised forms for 2010 that will become
mandatory for Real Estate Brokers as of January 1, 2011. All of the forms, as well
as the Rules of the Colorado Real Estate Commission will be available on the
Commission's website:

                  http://www.dora.state.co.us/real-estate/
        The Colorado Real Estate Commission's address:
                              Division of Real Estate
                            1560 Broadway, Suite 925
                                Denver, CO 80202
                      Attachments of the following DRAFTS:
A.      Red-lined copy of Contract to Buy and Sell Real Estate
        (Residential) CBS1-8-10
B.      Red-lined copy of Contract to Buy and Sell Real Estate
        (Income-Residential) CBS2-8-10
C.      Red-lined copy of Contract to Buy and Sell Real Estate
        (Commercial) CBS3-8-10
D.      Red-lined copy of Contract to Buy and Sell Real Estate
        (Land) CBS4-8-10
E.      Red-lined copy of Contract to Buy and Sell Real Estate
        (Colorado Foreclosure Protection Act)
        CBSF1-8-10
F.      Residential Addendum (RA33-8-10)
G.      Red-lined copy of Closing Instructions (CL8-8-10)
H.      Red-lined copy of Counterproposal (CP40-8-10)

Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 26
H.      Chart of Section Numbers in CBS forms.




Kent Jay Levine, P.C. 3780 South Broadway, Englewood, CO 80113; 303-783-0222   9/6/10   Page 27

				
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