The Colorado residential real estate purchase agreement (“contract to buy and sell a residential property”) is a contract that outlines the terms of a residential property deal between a buyer and a seller. It may only be used for residential properties where construction has been completed.
Do Sellers in Colorado Have to Disclose Property Defects?
Colorado does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Colorado
Along with any material defects with the property, sellers in Colorado will also need to provide the following:
- Sellers Property Disclosure. Sellers in Colorado must disclose any known issues that could negatively impact a home’s value or pose an unreasonable risk to the buyers’ safety or health.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
- Green Disclosure Form. This form covers any energy-related property additions or issues.
- Methamphetamine Lab Disclosure. Sellers are required to disclose if they know the property had previously been used for the production of methamphetamines.
- Potable Water Disclosure. Sellers are required to disclose the source of their water.
- Transportation Projects Disclosure. Completed by the seller, if they are aware of the existence of any proposed transportation project that affects or is expected to affect the real property.
- Common Interest Community Disclosure. Sellers are required to disclose if the property resides in a common interest community.
- Special Taxing District Disclosure. Sellers are required to disclose if the property resides in a special taxing district.
