Colorado DORA Residential Addendum to Contract Real Estate

Introduction to Colorado DORA Residential Addendum to Contract Real Estate

When it comes to the transfer of property rights, ensuring that all terms and conditions are clearly spelled out is essential. In Colorado, a vital tool in this process is the DORA Residential Addendum to Contract Real Estate. This document is appended to the initial contract to outline additional terms not covered by the primary agreement.

What Is the DORA Residential Addendum to Contract Real Estate?

This document, issued by the Colorado Department of Regulatory Agencies (or DORA as it's commonly known), offers extra security for both buyers and sellers. It offers an extra safeguard for both the person buying and the one selling. The residential addendum to the real estate contract takes care of basic elements like inspection, appraisal, loan terms, and any other property-related issues that could influence the deal.

Benefits of using the DORA Residential Addendum

The importance of this addendum cannot be overstated for anyone involved in a property transaction. It doesn't just give you peace of mind, it also clearly spells out all the extra terms and conditions, making sure both parties are protected. Unexpected contention points or unmet conditions are effectively addressed with this addendum, making it an integral part of the purchase process.

How to Fill Out Residential Addendum to Contract Real Estate

Here's a detailed step-by-step guide on how to fill out the Colorado DORA residential addendum to contract to buy and sell real estate template on PDFliner:

1. Begin by entering the date at the top of the form, where it states "Date."
2. Identify the contract to which this addendum applies by checking the appropriate box, either "Contract to Buy and Sell Real Estate (Land)" or "Contract to Buy and Sell Real Estate (Commercial)," and fill in the date related to the sale of the Property.
3. Provide the full address of the Property in the fields designated for Street Address, City, State, and Zip.
4. Under section 4.5.3 titled "Loan Limitations," select the type of loan that the buyer may use to purchase the Property by checking the appropriate box next to Conventional, FHA, VA, Bond, or Other. If Other, specify the type of loan.
5. In the Loan Estimate section (4.5.4), be aware that this does not require an entry but serves as an advisement for the buyer regarding the loan terms and monthly payment estimates.
6. For FHA and VA loans, sections 6.2.2 and 6.2.3 respectively, fill in the appraised value of the property where indicated if applicable. These sections inform the buyer of their rights related to the appraised value required by HUD/FHA or VA.
7. In section 10.8 concerning the Source of Potable Water, check whether the buyer acknowledges receipt of the seller’s property disclosure or the source of water addendum, and whether there is a current well permit or if there is no well.
8. For the Lead-Based Paint Disclosure section (10.10 and 10.10.1), fill in the necessary information if the property was built before January 1, 1978, and check the appropriate boxes to indicate whether the disclosure was received or if the buyer wishes to waive the right to terminate the contract based on this disclosure.
9. Ensure that all required parties sign and date the form at the bottom under Buyer and Seller sections to validate the information provided and agree to the terms of the addendum.