When selling a property in Colorado, a seller will typically sign an Exclusive Right to Sell Listing Contract with their real estate agent. This agreement outlines the terms of the sale and defines the role of both the seller and agent. One important aspect of this contract is the encumbrances that the seller lists on it.

Encumbrances are any legal rights or claims that others have on a property, such as liens, easements, or covenants. These encumbrances can impact the sale of the property, so it’s important for the seller to disclose them to the agent and potential buyers.

In Colorado, the Exclusive Right to Sell Listing Contract includes a section specifically for the seller to list any encumbrances on the property. This section is typically included under the “Property Condition and Disclosures” section of the contract.

Common encumbrances that may be listed on the contract include:

1. Liens: A lien is a legal claim against the property for unpaid debts. This could include unpaid property taxes, mortgage payments, or unpaid contractor bills.

2. Easements: An easement is a legal right for someone else to use a portion of the property for a specific purpose, such as a utility company’s right to run power lines through the property.

3. Covenants: A covenant is a legal agreement that restricts the way the property can be used. This could include limitations on building size or restrictions on the use of the property.

4. Deed restrictions: Deed restrictions are legal agreements that limit the way the property can be used. This could include restrictions on the type of building materials that can be used or limitations on the height of the building.

It’s important for a seller to list any encumbrances on the Exclusive Right to Sell Listing Contract to ensure that potential buyers are aware of them before making an offer. Failure to disclose encumbrances could lead to legal disputes down the line and could ultimately impact the sale of the property.

As a seller, it’s important to work with a knowledgeable and experienced real estate agent who can help guide you through the process of selling a property and disclosing any encumbrances. By working together, you can ensure that the sale of your property goes smoothly and that you avoid any potential legal issues.