Colorado real estate contract question.

Great question.  It is hard to say whether it is more common or not to select box 21.1.1.  However, if you do not select it, then the default provisions of 21.1.2 apply - which may suggest it is the standard, possibly more common, position. The real question is how to deal with damages if the Buyer defaults.  Specific performance means that the Seller can legally force the Buyer to go through with the contract.  If the breach arises from a title issue, or an inspection issue, then you may be able to make that happen.  If the breach arises because the Buyer cannot get funding, then it really doesn't change things, because the Seller cannot necessarily create funding for the Buyer. If 21.1.1 is selected, and the Buyer breaches, the Seller can pursue legal remedies, and go after the Buyer for damages.  The Seller will have the burden of proving the existence and amount of those damages.  It is a very expensive legal process, and typically only undertaken if the Seller has the resources to fund the initial lawsuit and the Buyer has sufficient resources to make it worth-wile. If 21.1.1 is not selected, then the default provisions of 21.1.2 apply, and the Seller gets to keep the Earnest Money and that is the final resolution.  Now legal expenses, but the total recovery is limited to the amount of the earnest money (which means that the funds actually exist and can be recovered). With that information, you'll have to figure out if the Buyer has sufficient resources to make a lawsuit worth the effort, or whether you simply want to make sure the earnest money is high enough that the Buyer won't walk away, or that Seller will be adequately compensated if Buyer does. Good luck!