Honesty Really is the Best Policy - the Seller's Property Disclosure Form: Discharging Seller's Duty to Disclose

Are you buying or selling a home in Colorado? Are you familiar with the Seller’s Property Disclosure Requirements? Do you know what actions to take if the Disclosure isn’t fully filled out? Do you know how to amend your disclosure? GLO specializes in preparing and reviewing Seller’s Property Disclosure Forms.

What are the Colorado Property Disclosure Rules?

Colorado real estate sellers have a legal duty to disclose “known adverse material facts.” To facilitate this disclosure, Colorado’s form Contract to Buy and Sell Real Estate (Residential) created by the Colorado Real Estate Commission (“CREC”) requires sellers of real property to fill out and deliver the most current version of the CREC Seller’s Property Disclosure form (the “Disclosure Form”) to Buyers before the disclosure deadline. The seller must complete the Disclose Form to the seller’s actual knowledge and ensure that the Disclosure Form is current.

Filing out the Disclosure Form assists in discharging the Seller’s Duty to Disclose, which is its purpose, but regardless of whether the Disclosure Form asks for information or not, a seller must disclose all known adverse material facts. A Seller must also disclose to a buyer any adverse material fact discovered after the Disclosure Form has been submitted. A buyer has the right to terminate based on a seller’s new disclosure on the earlier of closing or five (5) days after Buyer’s receipt of new disclosures.

What should be included in the Disclosure Form? 

There are sixteen (16) categories on the Disclosure Form. The seller must acknowledge any adverse material facts affecting the property whether a specific item is on the list or not. The non-exhaustive category list includes the following:

·      Structural Conditions;

·      Roof;

·      Appliances;

·      Electrical & Telecommunications;

·      Mechanical;

·      Ventilation/Air/Heat;

·      Water;

·      Source of Water & Water Supply;

·      Sewer;

·      Flooding & Drainage;

·      Carpet & Floors;

·      Use/Zoning/Legal Issues;

·      Access & Parking;

·      Environmental Conditions;

·      Common Interest Community; and

·      Other General Disclosures.

How can GLO help?

If you are selling a home and have questions about your Seller’s Property Disclosure form, GLO helps prepare and review Seller’s Property Disclosure forms to help ensure a smooth transaction.

If you are a buyer and have questions about a Seller’s Property Disclosure form that you have received, GLO offers one hour consultations to review these forms and ensure buyers fully understand the effects of these important documents.

Please fill out an Intake Form to inquire about working with GLO.

GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation, and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results.