My husband and I are in the beginning stages of becoming real estate investors. We currently are planning to fix and flip. I am looking for advice on what type of purchase contract to use when acquiring the property. The Colorado official realtor’s contract is extremely long. If you are not a realtor, are you required to use that contract? My understanding is that as long as the agreement is in writing and financial consideration is given, it is valid. Even if it is optional, would I be better off using the standard contract.
In my opinion the standard contract is best. I have seen a contract written on a napkin at a dinner table but I would hate to see it in a courtroom. It was about two lines long and I actually bought the two duplexes from the wholesaler who used the napkin contract. We used the standard contract to buy the property from him.
The standard Realtor form is long buy very often just glanced at by the seller and signed. With any other form you may be there for hours while they read each word and discuss each sentence at length. My ex partner had a 32 page contract drawn up by his lawyer, I was all one sided with 5 year warranties on every system in the property, roof, HVAC, electrical, plumbing, foundation etc. No one even read the thing much less accepted his offers.
Te\he short and long of my response is to use the Realtor forms. You are not required to unless you are a Realtor but it is best in MHO.
The contacts written by the division are long, yes but, only to protect both parties in the transaction. It would probably be best if you pay an agent to explain and draw a contract between you and seller.