Seller’s Disclosure Requirements
SELLER’S DISCLOSURE REQUIREMENTS UNDER COLORADO LAW
As a seller of residential real estate in Colorado, did you know that you have a positive obligation to disclose the good, the bad, and the ugly about your home? Our experienced Colorado Real Estate Lawyers can help you understand the requirements you must meet as a seller of real estate in Colorado.
Under Colorado law, the seller must:
a. Disclose any adverse material defect to the prospective buyer. Seller’s failure to do so may result in legal action against the Seller. This disclosure requirement encompasses all of the components of the home, including the structure, all mechanical systems, such as the plumbing, electrical and heating, the roof, electrical appliances, and the like.
b. Disclose the fact that your property is in a “Special Taxing District.” In Colorado’s urbanized areas, many neighborhoods, condominium projects, and subdivisions are in such districts. A Special Taxing District is an area of town that is allowed to assess its own taxes on the owners in addition to any other taxes charged by the municipality, the county, or the state.
c. Disclose whether the property is in a “Common Interest Community” – “CIC.” A CIC: “.. means real estate described in a declaration with respect to which a person, by virtue of such person’s ownership of a unit, is obligated to pay for real estate taxes, insurance premiums, maintenance, or improvement of other real estate described in a declaration. Ownership of a unit does not include holding a leasehold interest in a unit of less than forty years, including renewal options. The period of the leasehold interest, including renewal options, is measured from the date the initial term commences.” CRS 38-33.3-103). Often, a CIC is obvious – a condominium project is one such entity. In other cases, it is less clear. In all cases, however, the seller must make this disclosure if the property is within such a community.
d. Disclose the source of potable water. In Colorado, water is a precious commodity. As a result, the legislature requires sellers to disclose the source of household water. In the major metropolitan centers, water is typically delivered by a central water department. In rural or mountainous areas, however, the source of water may be a well, through the ownership of rights to a ditch or through ownership of a privately-owned water system.
e. Disclose the existence of lead paint.
f. Disclose the fact that the property is or was a methamphetamine lab.
g. Disclose the existence of any transportation projects of which the seller has actual knowledge.
Sellers are NOT required to disclose that the property is a so-called “stigmatized property” that suffered from the occurrence of a homicide, suicide, or similar problem.
If you have questions, please call.
Corporon & Katz, LLC
Michael J. Katz