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JEROME GERAGHTY

GLO specializes in Real Estate and Business Law, including Real Estate Transactions, Buying and Selling a Home, Real Estate Investment and Landlord Issues; Business Formation and Development; and Contractor Issues and Mechanics’ Liens

 

Home Buyer Protections and Warranties in Colorado

In Colorado, new home buyers benefit from legal protections such as the Construction Defect Action Reform Act (CDARA) for new builds, along with implied warranties of habitability and good workmanship. These frameworks are designed to ensure construction quality and provide recourse for addressing defects.

However, these protections do not extend to existing homes, which are typically sold "as-is."

Warranty Protections for New Build Homes

  1. Key Warranties for New Build Homes:

    • Implied Warranty of Habitability: Ensures the home is safe and suitable for living.

    • Implied Warranty of Good Workmanship: Guarantees construction meets reasonable quality standards.

    • Builder-Specific Warranties:

      • Many builders provide express warranties, covering aspects such as workmanship, materials, and major structural components.

      • Warranty durations vary; homeowners should carefully review terms.

  2. CDARA’s Statutory Warranty Provisions:

    • Buyers have two years from discovering a defect to file a claim.

    • Defects must be discovered within six years of construction completion.

Existing Homes Are Sold As-Is with No Warranty

Existing homes sold "as-is" provide fewer protections, placing the burden on buyers to conduct thorough due diligence.

  1. Buyer Due Diligence:

    • Sellers must disclose latent defects, and brokers must disclose adverse material facts under Colorado law.

    • Sellers and brokers are not obligated to investigate unknown issues, making buyer inspections critical.

  2. Home Inspections:

    • Buyers should always request a home inspection, even for "as-is" properties.

    • Contingency clauses in contracts can allow buyers to renegotiate or terminate the agreement if significant defects are discovered.

  3. No Common Law Warranties:

    • Homes sold "as-is" do not include warranties, and buyers assume the risk of any defects.

Work with GLO

An experienced real estate attorney can review contracts, assess warranties, and protect your interests throughout the home-buying process.

Contact GLO today to discuss your real estate needs and learn how our expertise can help make your transaction smooth and successful.

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