A Colorado residential purchase and sale agreement is a contract between a buyer and a seller for an agreed-upon sales price. An earnest money deposit is commonly required by the buyer and is held in a trust account until the closing or if the agreement terminates.

When does a purchase agreement become legally binding?

The purchase and sale agreement becomes legally binding when both parties sign the contract and the buyer gets the notice that the seller has accepted the deal. The buyer can get the notice in-person, by phone, and/or email.