Property Disclosures and Environmental Issues
Seller's Property Disclosure
Colorado requires a residential seller to deliver the Commission-approved Seller's Property Disclosure - a good-faith report of known conditions, defects, and systems, covering water, sewer, structural items, hazardous conditions, and legal matters. Statutory exemptions include new construction never occupied, foreclosure and deed-in-lieu transfers, gifts, and court-ordered transfers. It is disclosure, not warranty: the buyer must still inspect, and an 'as-is' sale does not excuse fraud or knowing concealment.
Federal and Colorado layers
- Lead-based paint: pre-1978 housing - disclose, deliver the EPA pamphlet, allow a 10-day inspection.
- Radon: a high-radon state; disclose known tests and mitigation.
- Methamphetamine: Colorado requires disclosure of known illegal drug manufacturing.
- Water/well: disclose the source of water and well permit status.
- CCIOA: HOA resale certificate for common-interest communities.
- Broker duty: disclose known adverse material facts, asked or not.
Traps: a broker answering SPD questions for the seller; assuming the SPD applies to commercial property (it does not); volunteering stigma information but answering truthfully when asked; promising square footage.
Rule of thumb: the seller discloses what the seller knows, the buyer verifies everything else, and the broker transmits without vouching.