Broker Reactivation-GENERAL PROVISIONS (Sections 18

GENERAL PROVISIONS (Sections 18 - 28 of the CBS1)
Pdf Summary
Sections 18-28 of the Contract to Buy and Sell Real Estate (CBS1) outline various provisions and terms related to property damage, insurance, condemnation, walk-throughs, legal and tax counsel, termination, earnest money disputes, and notice and delivery of documents.<br /><br />Section 18 addresses causes of loss, insurance, damage to inclusions and services, condemnation, and walk-throughs. It states that the property and inclusions will be delivered in their existing condition, with exceptions for ordinary wear and tear. If the property or inclusions are damaged before closing and the repair will be covered by insurance, the seller must use reasonable efforts to repair the property. The buyer has the right to terminate the contract if the repair is not completed or the damage exceeds a certain amount. In case of condemnation, the buyer has the right to terminate or receive a credit at closing for any condemnation proceeds awarded to the seller.<br /><br />Section 19 recommends seeking legal and tax counsel before signing the contract, especially if there are water rights, mineral rights, or leased items involved. It also mentions the importance of timely consultations due to strict time limits in the contract.<br /><br />Section 20 states that time is of the essence in the contract and outlines remedies in case of default by either the buyer or seller. The remedies include specific performance, liquidated damages, or damages.<br /><br />Section 21 states that in case of any arbitration or litigation relating to the contract, the prevailing party will be awarded reasonable costs and expenses, including attorney fees.<br /><br />Section 22 introduces the option of mediation for resolving disputes related to the contract, with the mediation costs equally shared by both parties.<br /><br />Section 23 mentions the release of earnest money and outlines possible actions by the earnest money holder in case of a dispute regarding its release.<br /><br />Section 24 explains the right to terminate the contract and the effect of termination.<br /><br />Section 25 declares that the contract constitutes the entire agreement between the parties and that any subsequent modifications must be in writing. It also states that any successor to a party will receive the benefits and obligations of the contract.<br /><br />Section 26 specifies the rules for physical and electronic delivery and notice, as well as the choice of law as governed by the State of Colorado.<br /><br />Section 27 includes a notice of acceptance and counterparts provision, stating that the contract becomes valid upon acceptance in writing by both buyer and seller.<br /><br />Section 28 emphasizes the obligation of both parties to act in good faith throughout the contract.
Keywords
Contract to Buy and Sell Real Estate
property damage
insurance
condemnation
walk-throughs
legal counsel
tax counsel
termination
earnest money disputes
notice and delivery of documents