Seller disclosure requirements in Colorado

Is a disclosure form required by law?

The statutes I read do not require a general “condition of the property” form from every seller. They do require named disclosures, and several refer to the Colorado Real Estate Commission’s approved seller’s property disclosure. For example, a seller of a home inside a newer metropolitan district must give the buyer the district’s website on that form or in a concurrent writing (§ 38-35.7-111). The Commission’s rules, not the statute, govern the form’s exact layout, and I could not open the Commission’s current form. Check the version your agent uses.

Brokers have their own duty. A seller’s broker owes the buyer no general duty, but must disclose to prospective buyers all adverse material facts actually known to the broker, including title problems, material defects and legally required environmental hazards (§ 12-10-404(3)). The broker has no duty to inspect the property or verify what the seller says.

What must a Colorado seller disclose?

Radon. The statute says the Colorado Department of Public Health and Environment recommends that all buyers test. The seller must provide any known test results and whether a mitigation system exists (§ 38-35.7-112(2)). The rules apply to single-family homes, condos, townhomes, duplexes and mobile homes, including homes sold by the owner (§ 38-35.7-112(3)).

Exemptions: what a seller does not have to say

Stigma facts. Colorado law says facts about a death, a felony on the property, or an occupant’s HIV or AIDS status are not material facts subject to disclosure. No claim arises against a broker for not disclosing them (§ 38-35.5-101). A broker acting for a seller also cannot reveal the seller’s motives or willingness to take less without consent (§ 12-10-404(2)).

Remediated meth labs. A seller who cleaned up the property to state standards and holds certificates of compliance need not disclose the past use (§ 38-35.7-103(4)).

Oil and gas notice. The oil and gas disclosure does not create a duty to investigate or disclose anything beyond what the seller, a licensed broker or a title agent already had to disclose (§ 38-35.7-108(2)).

What happens if a seller does not disclose?

The statute sets remedies for some items.

• Special taxing districts: the buyer has a claim for all damages from the missing notice, plus court costs (§ 38-35.7-101(2)).
• HOA notice: the buyer has a claim for actual damages directly caused, plus court costs. It is a defense if the buyer already knew the facts (§ 38-35.7-102(2)).
• Meth lab: a seller who knew and did not disclose is liable for remediation costs, health injuries after the sale and attorney fees. The buyer must sue within three years after closing (§ 38-35.7-103(3)).

Complying with the water-source rule bars a claim “for inadequacy of the property’s water source”, but other remedies are not affected (§ 38-35.7-104(2)). Other claims, such as fraud, depend on the facts and are outside the statutes I read. A buyer who suspects a hidden defect should talk to a Colorado attorney.

Federal lead-based paint rule (homes built before 1978)

This rule applies in every state. Before accepting the buyer’s offer, a seller of pre-1978 housing must (40 CFR § 745.107; EPA):

1. Give the buyer the EPA-approved pamphlet “Protect Your Family From Lead in Your Home.”
2. Disclose any known lead-based paint or lead hazards, and give the buyer any available records or reports.
3. Disclose the same to each agent.
4. Attach a Lead Warning Statement and signed acknowledgments to the sales contract (§ 745.113).
5. Give the buyer 10 days to inspect for lead paint, unless the buyer waives it or the parties agree to another period (EPA).
6. Keep a copy of the completed attachment for at least 3 years after the sale (§ 745.113(c)).

The rule does not require the seller to test for lead (§ 745.107). It does not apply to foreclosure sales (§ 745.101).

Practical steps for sellers and buyers

Sellers: complete the Commission’s form to your actual knowledge, give the radon and water-source details, and keep copies of any inspection or repair records. Buyers: read the contract’s bold-face notices, order a radon test and a home inspection, and ask for the HOA documents. For costs after you sign, see closing costs in Colorado and homeowners insurance. Hazards such as wildfire and flood are covered in natural hazards and insurance in Colorado.