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DORA Forms are Standardized in Colorado Real Estate Transactions
In Colorado, the Department of Regulatory Agencies, or DORA, uses promulgated real estate forms for transactions between real estate agencies and individuals. This might include buying a house or selling a house, as well as some other transactions. There is a purpose for utilizing certain approved real estate forms, although private individuals are not required to use approved forms.
Commission Approved Forms
In any transaction involving real estate brokers that requires forms, commission-approved forms must be used. If there’s a specific transaction taking place in which approved forms have not been created and real estate brokers create their own forms, those forms won’t be covered by Rule F. Rule F also states that any forms used by a broker should not be prepared by a broker, unless it’s permitted by law.
Why Sanctioned Forms?
In normal terms, the state of Colorado feels that that they’re better able to cover all the bases and make sure all parties are protected through the use of certain required forms. Therefore, real estate brokers utilize the pre-printed and approved forms rather than creating their own forms. This is beneficial to the unlicensed parties partaking in contracts, because it ensures that the forms are worded in an appropriate and fair manner.
Colorado
This rule is only applicable in the state of Colorado, so individuals seeking advice about other states should check their own state-specific laws.
Unlicensed Parties
Rule F and the required real estate forms are only for use with a real estate broker. This means that two unlicensed parties who want to have a transaction are not required to use these forms. For instance, if a man places an ad to sell his land and another man wants to purchase it, they’re able to draft their own forms or have their attorneys draft the forms and don’t have to worry about the required forms and Rule F.
Using an Attorney
Even in transactions where approved forms are used, individuals are wise to have their attorney look over the forms and any contracts to ensure that their best interests are looked after. In fact, before signing any sort of purchase contract or agreement, individuals should have it looked at by a real estate attorney.
Approved forms are a great way to ensure that the public is protected and that real estate brokers are unable to take advantage of individuals who may not have a strong understanding of real estate law. It’s also more convenient for the real estate agent who is handling the transaction. Overall, promulgated forms such as the DORA forms are easy, efficient and protect all parties involved in the transaction.
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