Colorado Real Estate Purchase Agreement

A Colorado residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.

Do Sellers in Colorado Have To Disclose Property Defects?

Colorado does require real estate sellers to disclose all known material defects with a property. In most cases, this is done with a standardized property disclosure form provided by the state.

By mutual agreement, it is possible to waive the use of the standard form and handle required disclosures another way. However, the seller always has a duty to disclose all material defects that are not obvious on a casual inspection of the property even if the buyer agrees to take the property “as-is.” The basic duty to disclose cannot be waived under any circumstances.

Required Seller Disclosures in Colorado

Colorado sellers of real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:

• 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.
• Radon Disclosure: Colorado law requires that all residential property sale agreements include a radon gas disclosure. This must include a a formal statement about the dangers of radon gas, plus current information about radon testing and concentrations on the property. The disclosure is not valid unless signed by the purchaser. [1] [2]