Colorado Real Estate FAQ's

View by Category: All Categories Brokerage Compliance Closings Commissions & Compensation Deeds & Property Ownership Dual Agency & Brokerage Relationships Earnest Money & Escrow Disputes General Legal Support Real Estate Contracts Title Insurance

• What are a Colorado broker’s main compliance obligations?

  Brokers must maintain written office policies, supervise associates, properly manage trust accounts, and use only Commission-approved forms. The Division of Real Estate can audit or discipline firms for non-compliance.

• Can Cox Peterson LLC help with brokerage compliance?

  Yes. We offer flat-rate compliance packages for Colorado brokerages, including office policy manuals, independent-contractor agreements, and Division audit preparation.

• What is "designated brokerage" in Colorado?

  In Colorado, each client is represented by one “designated broker.” Other brokers in the same firm do not automatically represent that client—reducing potential conflicts of interest.

• What does the closing attorney or title company do?

  The closing agent handles document signing, fund disbursement, and recording of the deed. The attorney ensures that all legal obligations are met and that ownership transfers properly.

• How long does a Colorado closing usually take?

  Most closings occur within 30–45 days after the contract is accepted, though timing can vary depending on financing, inspection, and title conditions.

• Should I have an attorney at my closing?

  It's highly recommended. An attorney can review final documents, explain settlement statements, and address any last-minute title or funding issues. For higher-value or investment deals, legal presence is especially valuable.

• How are real-estate commissions determined in Colorado?

  Commissions are 100% negotiable. There’s no fixed or standard rate. All commission terms must be clearly stated in a written listing or buyer-broker agreement.

• What if there’s a commission dispute between brokers?

  Commission disputes usually stem from unclear agreements or MLS rules. We assist brokers in resolving these through negotiation, mediation, or arbitration when necessary.

• How can I check if a property has liens or title problems?

  You can search the county clerk and recorder’s records or review the title commitment provided by your title company during closing. An attorney can explain what those liens mean and whether they must be resolved before transfer.

• What’s the difference between a warranty deed and a quitclaim deed in Colorado?

  A warranty deed guarantees that the seller owns the property free and clear of liens or title defects. A quitclaim deed simply transfers whatever ownership interest the grantor has—without any warranties. Warranty deeds are typical in Colorado sales, while quitclaim deeds are used for family transfers or to correct title errors.

• Is dual agency legal in Colorado?

  No. Colorado prohibits dual agency. Instead, brokers can serve as “transaction-brokers,” assisting both parties neutrally without advocating for either side.

• What’s the difference between a single agent and a transaction-broker?

  A single agent owes fiduciary duties to one client. A transaction-broker facilitates the deal for both parties without loyalty or confidentiality duties to either. Most Colorado transactions use the transaction-broker model.

• Who gets the earnest money if a deal falls through?

  It depends on the contract and timing. If the buyer terminates properly under a contingency, they usually receive a refund. Otherwise, the seller may keep it as liquidated damages.

• What’s the difference between earnest money and escrow funds?

  Earnest money is a buyer's good-faith deposit held in escrow. "Escrow" more broadly refers to funds held by a neutral third party, like repair holdbacks or post-closing reserves.

• When should I involve a real-estate attorney?

  Early is best—before you sign contracts or transfer funds. Preventive legal advice saves time, money, and stress down the road.

• Do you offer flat-fee or monthly retainer services for brokerages?

  Yes. Our monthly retainer program provides ongoing legal and compliance support for a predictable, flat monthly rate - no surprise hourly billing.

• How do I schedule a consultation?

  Contact us online or by phone to set up a consultation. Cox Peterson LLC is based in Colorado and focuses exclusively on real-estate and brokerage law.

• Are Colorado real-estate contracts standardized?

  Yes. Most transactions use the Colorado Real Estate Commission-approved Contract to Buy and Sell Real Estate. It’s standardized, but the blanks, deadlines, and clauses can significantly affect your rights—so legal review is always recommended.

• Can brokers make changes to standard contracts?

  Brokers can fill in approved blanks but cannot draft new legal language. Only attorneys can prepare or revise clauses. Our firm helps clients create custom addenda that comply with Colorado law.

• When is a real-estate contract binding in Colorado?

  Once both parties sign and the offer or counteroffer is delivered and accepted, the contract becomes binding. At that point, all key deadlines—inspection, title, financing—start to run.

• What’s the difference between an owner’s and a lender’s title policy?

  The lender’s policy protects the mortgage lender; the owner’s policy protects your ownership rights. Both are usually issued at the same time, but only the owner’s policy covers you directly.

• Do I need title insurance when buying real estate in Colorado?

  Yes. Title insurance protects against prior ownership issues, such as unpaid liens or forged documents. You pay a one-time premium at closing, and coverage lasts as long as you own the property.