Colorado Real Estate Purchase Agreement

A Colorado residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.

Do Sellers in Colorado Have To Disclose Property Defects?

Colorado does require real estate sellers to disclose all known material defects with a property. In most cases, this is done with a standardized property disclosure form provided by the state.
By mutual agreement, it is possible to waive the use of the standard form and handle required disclosures another way. However, the seller always has a duty to disclose all material defects that are not obvious on a casual inspection of the property even if the buyer agrees to take the property “as-is.” The basic duty to disclose cannot be waived under any circumstances.

Required Seller Disclosures in Colorado

• Sellers Property Disclosure: Sellers in Colorado must disclose any known issues that could negatively impact a home’s value or pose an unreasonable risk to the buyers’ safety or health.
• Lead-Based Paint Disclosure: Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
• Green Disclosure Form: This form covers any energy-related property additions or issues.
• Methamphetamine Lab Disclosure: Sellers are required to disclose if they know the property had previously been used for the production of methamphetamines.
• Potable Water Disclosure: Sellers are required to disclose the source of their water.
• Transportation Projects Disclosure: Completed by the seller, if they are aware of the existence of any proposed transportation project that affects or is expected to affect the real property.
• Common Interest Community Disclosure: Sellers are required to disclose if the property resides in a common interest community.
• Special Taxing District Disclosure: Sellers are required to disclose if the property resides in a special taxing district.
• Radon Disclosure: Colorado law requires that all residential property sale agreements include a radon gas disclosure. This must include a a formal statement about the dangers of radon gas, plus current information about radon testing and concentrations on the property. The disclosure is not valid unless signed by the purchaser. [1] [2]

Sources

Each contract of sale for residential real property must contain the following disclosure in bold-faced type that is clearly legible in substantially the same form as is specified as follows:

The Colorado Department of Public Health and Environment strongly recommends that ALL home buyers have an indoor radon test performed before purchasing residential real property and recommends having the radon levels mitigated if elevated radon concentrations are found. Elevated radon concentrations can be reduced by a radon mitigation professional.

Residential real property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading cause of lung cancer overall. The seller of residential real property is required to provide the buyer with any known information on radon test results of the residential real property.

Each contract of sale for residential real property or seller’s property disclosure for residential real property must contain the following disclosures:

(I) Any knowledge the seller has of the residential real property’s radon concentrations, including the following information:

(A) Whether a radon test or tests have been conducted on the residential real property; (B) The most recent records and reports pertaining to radon concentrations within the residential real property; (C) A description of any radon concentrations detected or mitigation or remediation performed; and (D) Information regarding whether a radon mitigation system has been installed in the residential real property; and (II) An electronic or paper copy of the most recent brochure published by the department of public health and environment in accordance with section 25-11-114 (2)(a) that provides advice about radon in real estate transactions. Source Link

Frequently Asked Questions

How Do You Write a Real Estate Contract in Colorado? In Colorado, buyers and sellers are required to fill out the Colorado Real Estate Commission’s (“CREC”) Contract to Buy and Sell Real Estate (Residential) instead of writing their own contract. This state-specific document includes the names of each party, the legal property address along with the terms of the property sale. Read more » How Can You Get out of a Real Estate Contract in Colorado? You can get out of a real estate contract in Colorado during several stages of the buying process. First, if the seller fails to make a required disclosure about something they were legally required to about the property, the contract may be terminated. If the seller agrees to the offer and has not signed it yet, it can be rescinded. Read more » What Is the Effective Date of a Real Estate Contract in Colorado? In Colorado, the effective date of a real estate contract is the date and time the buyer and seller have agreed to the contract terms and have executed it. This typically occurs on the day of closing and is when the buyer takes possession of the property. Read more » Can a Seller Cancel a Real Estate Contract in Colorado? In Colorado, a seller can get out of a real estate contract if the buyer’s contingencies are not met—these include financial, appraisal, inspection, insurance or home sale contingencies agreed to in the contract. Sellers might have additional exit opportunities with unique situations also such as an estate sale. Read more »