Colorado Residential Purchase Agreement

A Colorado residential purchase agreement is a document that outlines the terms and conditions negotiated between the buyer and seller in a real estate transaction. This includes details like the purchase price, financing options, earnest money deposit, and closing specifics.

The agreement provides legal protection for both parties by including clauses for possible termination and requiring the seller to disclose important information to the buyer.

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State Laws

• Common Interest Community: Sellers must disclose if a property is located in a common interest community by including a specific statement in the sales contract. [1]
• Methamphetamine Production: Sellers must disclose if a property was used as a meth lab unless it has been remediated. [2] Buyers can test for meth and terminate the agreement if contamination is found. [3]
• Radon Disclosure: Sellers must disclose any known radon concentrations and provide a warning statement on its dangers, which must be signed by the buyer to be valid. [4]
• Potable Water: Sellers must disclose the source of potable water in the property disclosure. This includes specifying if it’s from a well (and providing the well permit if available), a water provider (including contact details), or an alternative source. [5]
• Oil and Gas Activity: The purchase agreement or seller’s disclosure must include an oil and gas activity statement as per statutory requirements. [6]
• Transportation Projects: Sellers must disclose any nearby transportation projects that could affect the property, as part of the property disclosure statement. [7]
• Special Taxing Districts: All residential purchase agreements in the state must include a special taxing district disclosure stating if the property is located in a special taxing district. [8]

Required Seller Disclosures

Lead-Based Paint Disclosure

Sellers of residential properties built before 1978 must provide a lead-based paint disclosure form to potential buyers, as mandated by federal law (42 U.S. Code § 4852d).

Seller's Property Disclosure (Residential)

This form helps sellers comply with state laws and informs buyers about the property's condition and any safety or health risks (§ 38-35.7).

Green Disclosure (Energy)

For properties with energy features, the state recommends this form to highlight energy efficiency and related issues. Although not mandatory, sellers should complete it for prospective buyers.

Do Sellers in Colorado Have to Disclose Property Defects?

Yes, sellers in Colorado are required to disclose any material defects in the property, ensuring that buyers are informed about significant issues that could affect the property’s value or safety.

Unlike in states that follow the principle of caveat emptor (buyer beware), where buyers are responsible for inspecting the property thoroughly, Colorado law mandates that sellers provide disclosures to protect buyers from potential fraud or misrepresentation.

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1. § 38-35.7-102. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-102-disclosure-common-interest-community-obligation-to-pay-assessments-requirement-for-architectural-approval
2. § 25-18.5-102. https://casetext.com/statute/colorado-revised-statutes/title-25-public-health-and-environment/environmental-control/article-185-illegal-drug-laboratories/section-25-185-102-illegal-drug-laboratories-rules
3. § 38-35.7-103. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-103-disclosure-methamphetamine-laboratory
4. § 38-35.7-112. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-112-disclosure-elevated-radon-rules-definition
5. § 38-35.7-104. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-104-disclosure-of-potable-water-source-rules
6. § 38-35.7-108. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-108-disclosure-of-oil-and-gas-activity-rules
7. § 38-35.7-105. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-105-disclosure-of-transportation-projects-rules
8. § 38-35.7-101. https://casetext.com/statute/colorado-revised-statutes/title-38-property-real-and-personal/real-property/conveyancing-and-evidence-of-title/article-357-disclosures-required-in-connection-with-conveyances-of-residential-real-property/section-38-357-101-disclosure-special-taxing-districts-general-obligation-indebtedness

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