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.
- 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.
Sources
- 1 Colo. Rev. Stat. § 38-35.7-112(2)(a)
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Each contract of sale for residential real property must contain the following disclosure in bold-faced type that is clearly legible in substantially the same form as is specified as follows:
The Colorado Department of Public Health and Environment strongly recommends that ALL home buyers have an indoor radon test performed before purchasing residential real property and recommends having the radon levels mitigated if elevated radon concentrations are found. Elevated radon concentrations can be reduced by a radon mitigation professional.
Residential real property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading cause of lung cancer overall. The seller of residential real property is required to provide the buyer with any known information on radon test results of the residential real property.
- 2 Colo. Rev. Stat. § 38-35.7-112(2)(b)
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Each contract of sale for residential real property or seller’s property disclosure for residential real property must contain the following disclosures:
(I) Any knowledge the seller has of the residential real property’s radon concentrations, including the following information: (A) Whether a radon test or tests have been conducted on the residential real property; (B) The most recent records and reports pertaining to radon concentrations within the residential real property; (C) A description of any radon concentrations detected or mitigation or remediation performed; and (D) Information regarding whether a radon mitigation system has been installed in the residential real property; and (II) An electronic or paper copy of the most recent brochure published by the department of public health and environment in accordance with section 25-11-114 (2)(a) that provides advice about radon in real estate transactions. Source Link