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Colorado Real Estate Broker License: Free Study Course

Counterproposals, amend/extend, notices, inspection objection and resolution

Colorado Real Estate Contracts and Regulations · 3 study hours

Bottom line: Every change after the first offer must be in writing on the right form and delivered by the deadline; a counterproposal kills the offer it answers.

Bottom line: real estate deals live and die on paper trails. Each Colorado Commission form has one job. Use the right form, in writing, delivered on time. If a deadline is missed, the contract itself says what happens, and often the missed option is simply gone.

The counterproposal

A buyer makes an offer (a proposal to buy). The seller can accept it, reject it, or counter it. A counterproposal is a written reply that changes terms: price, closing date, repairs, anything. The legal effect is key: a counterproposal replaces the offer, and the original offer is dead. The seller cannot later say "I'll take your first offer after all". The buyer is free to refuse the counter, and the buyer cannot be forced back to the old terms. A counter must be accepted by the other side by the stated deadline, and it may itself be countered. Each round is a new offer.

Brokers must present all offers to the other side's broker if that side has a listing in force (Rule 6.13). If the broker is unable to reach the other broker after reasonable tries, the broker goes to that broker's employing broker, and only after that may go directly to the other party.

Agreement to Amend/Extend

After both sides have signed a contract, changes require an amendment, a written, signed change to the existing contract. The Colorado form for this is the Agreement to Amend/Extend Contract. Use it when you move the closing date, extend a deadline, change the price, add a repair, or alter a credit. It only works if both parties sign. Oral changes do not count, and a text saying "ok" is a risk. Under Rule 6.14.A.1, any terms made after the original contract must be disclosed in an amendment, and financial terms must be itemized accurately. Brokers must hand duplicates to the clients at the time they prepare documents (Rule 6.14.A.2).

Notice to Terminate

A Notice to Terminate is a written notice ending the contract under a right the contract gives (inspection, appraisal, loan, title, and similar). The notice must be delivered to the other side before the specific deadline. It is how the buyer gets earnest money back. If it arrives late, the right is likely gone.

Inspection Objection and Inspection Resolution forms

  • Inspection Objection: the buyer lists what is wrong and what the buyer wants (repair, credit, or other fix). It is due on or before the Inspection Objection Deadline.
  • Inspection Resolution: what the sides agree to, in writing, by the Inspection Resolution Deadline.

Keep the objection specific: name the issue and the fix and attach the inspector's page. Vague demands start fights. A resolution that is not signed is only a conversation.

How a missed deadline is handled

The contract has a Dates and Deadlines table. Each right has a date, and the contract says what happens if nobody acts. Typically:

  • If the buyer says nothing by the Inspection Objection Deadline, the buyer is treated as accepting the property's condition.
  • If the buyer misses the Loan Termination Deadline, the loan condition is treated as satisfied, and a later loan failure is a risk to the earnest money.
  • If the seller misses a delivery deadline (for example, a required document), the buyer may have a termination right.

Because our sources do not reproduce the form text, always check the version of the form in force. Many deadlines are strict. The standard form generally says time is of the essence, meaning a missed date matters. It also usually counts days as calendar days and moves a deadline that lands on a weekend or holiday to the next business day, but confirm in the form.

Delivery rules and electronic delivery

Delivery means the notice or document reaches the other party in a way the contract allows. Under the standard form, this generally includes personal delivery, mail or courier, and email. Delivery to a party's broker is generally treated as delivery to the party, while the broker's agreement is in effect. Electronic copies with valid electronic signatures count as duplicates, and electronic records are defined by Colorado's electronic transactions law (4 CCR 725-1 Rule 1.21 and 1.23, citing C.R.S. 24-71.3-102). Tips: send by the method listed in the contract, keep a sent-receipt, and watch the clock. A notice sent at 11:59 p.m. is risky if the deadline is a time of day.

Example with real numbers

Buyer offers $480,000 on a Boulder County home listed at $500,000. Buyer's Inspection Objection Deadline is June 10.

  1. Seller counters at $495,000 and a July 15 closing. The $480,000 offer is now dead.
  2. Buyer counters back at $488,000, keeping the July 15 date. The $495,000 counter is dead.
  3. Seller accepts in writing, so a contract exists at $488,000.
  4. Inspection finds a $6,000 roof repair. Buyer's objection form asks for a $6,000 credit by June 10.
  5. Seller offers $3,500. The Inspection Resolution form, signed by both, says a $3,500 credit. The effective price is $488,000 minus $3,500 = $484,500.
  6. Lender needs the closing moved to July 22. An Agreement to Amend/Extend, signed by both, changes the date. Without it, the old date still controls.

If the buyer had sent the objection on June 11, after the deadline, the buyer would likely have no right to demand the credit.

Law cited

Key terms

Offer
A proposal to buy on stated terms.
Counterproposal
A reply that changes terms and replaces the offer it answers.
Acceptance
Agreeing to every term of the current proposal, creating a contract.
Amendment
A signed written change to an existing contract.
Agreement to Amend/Extend
The standard form used to change terms or extend deadlines after signing.
Notice to Terminate
A written notice ending the contract under a right inside it.
Inspection Objection
The buyer's written list of problems and requested fixes.
Inspection Resolution
The signed agreement settling an objection.
Time is of the essence
A phrase meaning deadlines are strictly enforced.
Delivery
Getting a notice to the other party in a way the contract allows.
Duplicate
A legible copy, including electronic copies bearing electronic signatures (Rule 1.21).
Electronic record
A record made, sent, received or stored electronically (Rule 1.23).

Flashcards

What happens to the original offer when a counterproposal is made?

It is dead; the counter replaces it.

Which form changes a signed contract?

Agreement to Amend/Extend, signed by both parties.

Can a text saying 'ok' change a contract?

Not safely. Use the amendment form, signed.

What do you send to end the contract using a built-in right?

A written Notice to Terminate, before the deadline.

Inspection Objection vs Inspection Resolution

Objection: buyer's list and ask. Resolution: signed agreement settling it.

What does a missed deadline usually mean?

That option is waived or the default outcome in the contract applies.

What must a broker give clients when preparing documents?

Duplicates at the time (Rule 6.14.A.2).

Who must a broker present offers to if the other side has a listing?

The other side's broker (Rule 6.13).

Do electronic copies with electronic signatures count as duplicates?

Yes (Rule 1.21).

Quiz: 10 questions

Tap an answer. It shows right or wrong and opens the reason. Your score is saved in this browser and counts in the study app.

  1. A seller counters a buyer's $480,000 offer at $495,000. The buyer rejects, then the seller says 'fine, I'll take $480,000'. Is there a contract?

    1. A Yes, the original offer is still open
    2. B Yes, because the seller changed minds
    3. C Only if the broker agrees
    4. D No, the counterproposal killed the original offer
    Show answer and why

    Answer: D. No, the counterproposal killed the original offer

    A counter replaces the offer. The seller would have to make a new written proposal that the buyer then accepts.

    General contract law; Commission forms

  2. Which form changes the closing date after both sides have signed?

    1. A Counterproposal
    2. B Agreement to Amend/Extend
    3. C Seller's Property Disclosure
    4. D Inspection Objection
    Show answer and why

    Answer: B. Agreement to Amend/Extend

    After signing, a signed amendment is the right tool. A counterproposal is for negotiating before a contract exists.

    4 CCR 725-1 Rule 6.14.A.1

  3. The buyer's inspection objection deadline is June 10 and the buyer sends the objection June 11. The likely result?

    1. A The objection works anyway
    2. B The seller must repair everything
    3. C The right to object has probably been lost
    4. D The contract is void
    Show answer and why

    Answer: C. The right to object has probably been lost

    Deadlines are strict, and silence by the deadline generally means acceptance of condition.

    Contract to Buy and Sell, Dates and Deadlines

  4. A contract at $488,000 gets a signed $3,500 credit through an Inspection Resolution. What is the effective price?

    1. A $484,500
    2. B $491,500
    3. C $488,000
    4. D $3,500
    Show answer and why

    Answer: A. $484,500

    $488,000 minus $3,500 = $484,500.

    Lesson example

  5. Which is NOT a reason to use a Notice to Terminate?

    1. A Failed inspection with right to terminate
    2. B Loan falls through before the loan deadline
    3. C Buyer simply changed mind after all deadlines passed
    4. D Title problem within the title right
    Show answer and why

    Answer: C. Buyer simply changed mind after all deadlines passed

    The notice works only under a right the contract grants and before its deadline. A mere change of mind after the deadlines is a default risk.

    Contract to Buy and Sell, Termination

  6. A buyer's broker emails an offer to a seller who has a listing. What does Rule 6.13 require?

    1. A Present it to the seller's broker
    2. B Send it to the seller directly
    3. C Wait for the seller to call
    4. D Post it to the MLS
    Show answer and why

    Answer: A. Present it to the seller's broker

    Offers must be presented to the other consumer's broker when there is an unexpired listing.

    4 CCR 725-1 Rule 6.13

  7. A text message says 'Ok to move closing to the 22nd', but nothing is signed. Safest view?

    1. A It is a valid amendment
    2. B It binds only the seller
    3. C It binds only the buyer
    4. D It is risky; use the signed Agreement to Amend/Extend
    Show answer and why

    Answer: D. It is risky; use the signed Agreement to Amend/Extend

    Contract changes should be written and signed by both. A text is weak proof.

    4 CCR 725-1 Rule 6.14.A.1

  8. Under Rule 1.21, a Duplicate may include:

    1. A Only original ink papers
    2. B Electronic copies with a digital or electronic signature
    3. C Verbal descriptions
    4. D Photographs of the property
    Show answer and why

    Answer: B. Electronic copies with a digital or electronic signature

    The rule lists photocopies, faxes and electronic copies with electronic signatures.

    4 CCR 725-1 Rule 1.21

  9. Why must an Inspection Objection be specific?

    1. A The state requires an inspector's license number
    2. B It must name the problem and requested fix so the seller can answer
    3. C The title company reviews it
    4. D It voids the contract if vague
    Show answer and why

    Answer: B. It must name the problem and requested fix so the seller can answer

    Vague demands cause fights and missed deadlines. Specific ask plus attached report makes resolution possible.

    Inspection Objection form

  10. What does a broker give each client at the time the broker prepares a document?

    1. A Nothing until closing
    2. B A summary email only
    3. C A Duplicate
    4. D A recording
    Show answer and why

    Answer: C. A Duplicate

    Rule 6.14.A.2 says duplicates go to all consumers or their representatives when the document is prepared.

    4 CCR 725-1 Rule 6.14.A.2

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