The Colorado Real Estate Contract, Explained

The MEC is the date and time when both buyer and seller have signed the contract and it has been delivered to all parties. Every deadline in the Colorado Contract to Buy and Sell is counted from this date, so it is the most important timestamp in the entire deal.

If you sign on a Tuesday and the seller counters and signs Friday, the MEC is Friday — not Tuesday. Your inspection deadline, loan deadline, and all other contingencies begin ticking from that Friday.

Earnest money (also called an earnest money deposit, or EMD) is a deposit made by the buyer shortly after the contract is signed to demonstrate serious intent. In Colorado, it is typically held in escrow by the title company until closing, where it is applied toward your down payment or closing costs.

Colorado's contract specifies a deadline for delivering earnest money — typically within 3 business days of MEC. If you miss that deadline, you are in default. The amount is negotiable, but sellers use it as a signal of commitment. A larger EMD can strengthen your offer in a competitive market.

Colorado gives buyers the right to conduct a physical inspection of the property during a negotiated window after MEC. If you discover issues — structural concerns, a failing HVAC, deferred maintenance — you can submit an Inspection Objection notice listing the items you want addressed.

An inspection objection is not a request to fix everything. It is a formal written notice citing specific deficiencies you want resolved before proceeding. After you submit it, the seller has until the Inspection Resolution Deadline to respond — they can agree, partially agree, or refuse entirely.

Once you submit an Inspection Objection, the seller has until the Inspection Resolution Deadline to respond. They may agree to make repairs, offer a price concession, provide a credit at closing, or reject your requests entirely.

If the seller rejects your objection and you cannot reach agreement by this deadline, you have two paths: terminate the contract and receive your earnest money back, or waive your objection and proceed as-is. If the deadline passes with no written agreement and no termination notice, you are generally considered to have waived the objection.

If your offer is contingent on financing, the Loan Objection Deadline is the last date you can terminate the contract and recover your earnest money because you were unable to obtain a satisfactory loan commitment. Before this date, if your lender is unable to approve the loan, you can walk away without penalty.

After this deadline passes, your financing contingency expires. If you can no longer get financing after the Loan Objection Deadline, you risk losing your earnest money — so it is critical to work closely with your lender to make sure your underwriting is on track before this date arrives.

If you are financing your purchase, your lender will order an appraisal to confirm the property is worth at least the purchase price. The Appraisal Deadline is the date by which this process must be complete and reviewed.

Colorado's contract has a specific Appraisal Objection process. If the property appraises below your purchase price (a "low appraisal"), you can object and negotiate. Options include: the seller lowers the price, you pay the gap out of pocket, or you terminate if you cannot reach agreement. Without an appraisal contingency, a low appraisal does not give you an automatic right to exit.

The title company will search public records and produce a Title Commitment — a document that identifies any liens, easements, encumbrances, or other issues attached to the property. You have until the Title Deadline to review this commitment and raise any objections.

Common title issues in rural Colorado include: old mining claims that overlap the parcel, easements for irrigation ditches, grazing rights, Forest Service or BLM access easements, unpaid mechanic's liens from prior contractors, and HOA deed restrictions that weren't disclosed. Title insurance protects you from most covered defects — the commitment tells you exactly what is and is not covered.

If the property is part of a homeowners association, the seller must provide HOA documents within a specified window. These include the Declaration of Covenants, Conditions and Restrictions (CC&Rs), bylaws, budget, meeting minutes, reserve fund status, and any pending assessments or litigation.

Colorado law (CCIOA) gives buyers a specific right to terminate the contract based on HOA documents within 5 days of receiving them, or by the Due Diligence Documents Deadline — whichever is earlier. This is a powerful protection: you can review the financial health of the HOA before you are committed.

Colorado's contract gives buyers the right to obtain and review property insurance quotes during a specified period. If you cannot obtain insurance at a satisfactory premium, or at all, you have the right to terminate the contract.

This clause became significantly more important in recent years. Wildfire risk, hail damage exposure, and some older construction types in mountain communities have caused certain insurers to exit parts of Colorado. Some properties in higher-risk zones now cost several times more to insure than a comparable Front Range home — that cost affects your monthly payment.

A survey confirms the exact legal boundaries of the property. If an existing survey is available, the title company will provide it. If not, you may elect to have one conducted. The Survey Objection Deadline is your window to raise issues found in the survey.

Survey issues in rural Colorado are common: a neighbor's fence that crosses the property line by 20 feet, a shared driveway that encroaches on the parcel, or improvements (a shed, a well) that sit closer to the boundary than local setbacks allow. These encroachments can affect your ability to sell or refinance later.

Colorado's contract includes a detailed section specifying what personal property conveys with the sale (inclusions) and what the seller is taking with them (exclusions). Fixtures are presumed to convey unless excluded; personal property must be explicitly listed to be included.

Colorado defines "fixtures" broadly — generally, if it is attached or built into the home, it conveys. Common disputes arise over: refrigerators, washer/dryer units, mounted TVs, hot tubs, outdoor furniture, decorative light fixtures, window coverings, and outbuildings. "The hot tub stays" is not enough — it must be in writing.

The Closing Date is the date on which the title company facilitates the transfer of ownership from seller to buyer. You sign loan documents, fund is wired, and the deed is recorded. From this point, you are legally the owner of the property.

In Colorado, "closing" and "funding" are often the same day, but technically funding must occur before the deed can record. If there is a delay — your lender's wire is late, for example — closing can slip. A closing extension requires written agreement from both parties.

Possession is the date and time when the buyer takes physical control of the property. Closing and possession are often — but not always — the same day. A seller may need a few extra days to move out, or a buyer may need to close early while giving the seller time to vacate.

If possession is delayed after closing, the parties typically agree to a Post-Closing Occupancy Agreement, where the seller essentially rents from the new owner. Colorado's contract sets out provisions for this, including a per-day holdover fee if the seller stays past the agreed possession date.

Closing costs in Colorado typically run 2-4% of the purchase price. They include lender fees, title insurance, recording fees, prepaid taxes and insurance, and various settlement charges. Colorado's contract allows buyers to ask sellers to cover some or all of these costs as a "seller concession."

A seller concession reduces the seller's net proceeds but allows the buyer to finance their closing costs into the loan rather than paying out of pocket. Lenders cap the amount of seller concessions allowed (typically 2-6% depending on loan type). In a seller's market, concessions are harder to get; in a buyer's market, they are more common.