Do I need a real estate attorney to buy or sell a home in Colorado?
Short answer: Usually not. Most Colorado home purchases and sales use standard contract forms approved by the Colorado Real Estate Commission, and a title company handles the closing, so many buyers and sellers never hire an attorney. You do need a Colorado real estate attorney when the deal goes beyond those forms: changing their wording, signing a builder's or other custom contract, structuring something unusual such as a lease-to-own arrangement, or handling an estate, divorce, title problem, or legal dispute. This page is general information, not legal advice.
Why most Colorado transactions don't need an attorney
Colorado works differently from some states, where several attorneys may be involved in a typical home sale. In 1957, in Conway-Bogue Realty Investment Co. v. Denver Bar Association, the Colorado Supreme Court allowed real estate brokers to prepare certain legal documents, but only by filling in the blanks on standard, approved forms for transactions they're involved in as brokers.
The Colorado Real Estate Commission now approves those forms, including the Contract to Buy and Sell Real Estate, and brokers are required to use them in most transactions. Because the forms are standardized and legally reviewed, buyers and sellers get consistent terms without paying an attorney to draft every contract.
What brokers can't do is give legal advice. An agent can fill in and explain how the standard forms work, but questions that go beyond the forms belong with an attorney.
When your agent will send you to an attorney
If you want to change the state-approved forms. If you want to change the wording of the approved forms beyond what they allow, your agent has to direct you to a real estate attorney.
If you're asked to sign a custom contract. Home builders commonly use their own contracts, and some sellers or banks do too. Your agent can still represent you, but can't advise you on the legal terms of a contract that isn't a Commission form. Colorado law now requires your broker to advise you to seek independent legal counsel when you're asked to sign a custom contract.
If the deal is structured in an unusual way. Here's an example from my own work. I had a client who was selling a condo in Breckenridge to a buyer who wanted it but wasn't quite ready to buy. They wanted to set it up almost like a lease-to-own arrangement, with a large deposit up front, and the standard forms don't account for that. We sent them to a real estate attorney, who drew it all up.
It turned out to be a great deal for my client. They had a guaranteed deposit of about 20% of the price, the buyer paid monthly rent while getting the rest of their finances together, and about two years later they completed the purchase. Having an attorney structure it is what let the whole deal go through.
Other situations where an attorney helps
- Estates and probate, such as selling a home after a death in the family.
- Divorce or separation, when ownership or the sale proceeds need to be divided.
- Title or boundary problems, such as a lien, an unclear ownership history, or a fence or structure over a property line.
- Powers of attorney, when someone will sign on the owner's behalf. See choosing an agent to help a parent downsize.
- Disputes, such as a buyer or seller backing out, or a claim about undisclosed defects.
- Selling on your own, if you want help with the contract and disclosures. See selling your home yourself.
- Seller financing or other creative financing that the standard forms don't cover.
Who does what
- Your real estate agent completes the standard forms, negotiates, manages deadlines, and coordinates the transaction.
- The title company researches the title, issues title insurance, and handles the closing and the funds. See what a title company does.
- A real estate attorney gives legal advice, drafts or reviews custom documents, and represents you in legal matters.
If you're moving from a state where attorneys handle closings
If you're used to an attorney handling every closing, it can feel unusual not to have one in Colorado. The standard forms and title-company closings are the normal process here. You can still hire an attorney anytime you'd like one to review your documents.
How to find the right attorney
Look for a Colorado-licensed attorney who focuses on real estate, or an estate or family law attorney when that's the issue. Ask about their experience with your type of situation and how they charge. Your agent can suggest a few names. Team Hobbs Realty does not receive referral fees from any attorney we recommend.
What could change the answer
The more a transaction departs from a standard purchase or sale, the more likely you'll want an attorney: custom contracts, unusual timelines or financing, legal disputes, or properties with title issues.
When to talk with a professional
If you're unsure whether your situation needs an attorney, ask your agent early. It's much easier to bring an attorney in before you sign than after.
If you're planning a purchase or sale that doesn't fit the usual mold, let's talk through it, and I can help you figure out when to bring in an attorney.
Related questions
- What does a title company do in a Colorado home sale?
- Who do I need on my team when buying a home in Colorado Springs?
- Should I sell my Colorado Springs home myself or use a discount brokerage?
- How do I choose an agent to help a parent downsize or sell a longtime family home?
- Can I successfully buy a Colorado Springs home from out of state?
- How do I find the best real estate agent in Colorado Springs?
About the author
Weldon Hobbs is a Colorado Springs real estate professional and co-founder of Team Hobbs Realty, affiliated with The Platinum Group, REALTORS®. He is a U.S. Air Force Academy graduate and retired Air Force officer. He holds an MBA and the PMP, Certified Financial Coach, SRES®, and MRP (Military Relocation Professional) credentials. He is not an attorney and does not give legal advice.
Sources
- Colorado Real Estate Manual, Chapter 28: Commission Approved and Miscellaneous Forms (Rule F): https://spl.cde.state.co.us/artemis/regserials/reg52908r22internet/2009%20manual/reg52908r22200930internet.pdf
- Colorado Division of Real Estate, Contract to Buy and Sell Real Estate (Residential): https://dre.colorado.gov/sites/dre/files/documents/Contract%20to%20Buy%20and%20Sell%20Real%20Estate%20(Residential)%20-%20CLEAN.pdf
- South Metro Denver REALTORS® Association, New Colorado Law Brings Added Consumer Protection to Real Estate Transactions: https://smdra.com/new-colorado-law-brings-added-consumer-protection-to-real-estate-transactions/
- JBP Legal, 2019 Commission-Approved Changes to the Contract to Buy and Sell Residential Real Estate: https://www.jbplegal.com/blog/2019-commission-approved-changes-to-the-contract/