Seller Disclosure Requirements
in Colorado

Unlike some jurisdictions with a strict “buyer beware” approach, Colorado law carves out significant exceptions that place a clear legal duty on sellers. While not a full disclosure state in the purest sense, the legal landscape here heavily favors transparency through mandated property disclosure. The cornerstone of this system is the Seller's Property Disclosure form, a comprehensive document approved by the Colorado Real Estate Commission (CREC). This isn't a warranty or a guarantee of the home's condition; rather, it’s a statement of the seller’s *actual knowledge* of the property at a specific point in time. Under the standard Colorado Contract to Buy and Sell Real Estate, the seller must deliver this form to the buyer by a specified deadline, triggering the buyer's right to review it and, if necessary, terminate the contract based on its contents. industry experience in court has shown that judges take this seller disclosure Colorado obligation very seriously.

At the heart of the Colorado disclosure requirements is a detailed questionnaire that probes the seller’s knowledge across numerous categories. The question of what must sellers disclose extends far beyond a leaky faucet. You are required to reveal your knowledge of structural issues, such as foundation cracks or movement; evidence of water intrusion, whether in the basement, crawlspace, or from roof leaks; and problems with major systems like electrical, plumbing, and HVAC. The Colorado seller disclosure form also specifically asks about the source of your water, the status of your sewer or septic system, and the presence of any known environmental issues. It even delves into non-physical matters, such as zoning violations, disputes with neighbors over fences or property lines, and any improvements made without the necessary permits from the local municipality, be it in Denver or a smaller town like Durango.

Beyond the standard structural concerns, Colorado’s unique geography and climate impose specific property disclosure considerations. Countless cases show disputes arise from issues unique to our state. For example, sellers along the Front Range, from Fort Collins to Pueblo, must be candid about any known impacts of expansive soils (bentonite), which can cause significant foundation heave and structural damage. Radon, a naturally occurring radioactive gas seeping from the granite bedrock of the Rocky Mountains, is another critical item; any known high test results or the presence of a mitigation system must be disclosed. In mountain communities like Vail or Breckenridge, you must disclose proximity to avalanche zones, while in other areas, past or potential wildfire risk is a material fact. History of mining activity and potential for subsidence is also a key disclosure in historic mining towns, a detail often overlooked by out-of-state sellers.

In litigation experience, the failure to provide a complete and honest seller disclosure in Colorado is the single most common cause of post-closing lawsuits. When a seller intentionally conceals a known, material defect—a recurring basement flood they painted over, a failing roof they patched just enough to pass a cursory glance—they open themselves up to claims of fraud or misrepresentation. I once handled a case where a seller in Westminster failed to disclose a history of sewer line backups caused by tree roots, a problem they knew about for years. The new owners faced a catastrophic backup weeks after closing, and the court ultimately awarded them significant damages to cover the extensive repairs and remediation. This highlights the critical distinction between a patent defect (one easily discoverable by a buyer) and a latent defect (a hidden issue), which sellers have a firm duty to disclose if known.

To navigate these complexities successfully, sellers should view the property disclosure process not as a hurdle, but as a shield. The best practice is to be meticulously honest. If you are unsure about the history or condition of a certain system, it is far better to state that it is “unknown” than to guess and be wrong. For many of clients, I strongly recommend a pre-listing inspection. This allows you to identify and either repair issues before listing or, at a minimum, disclose them accurately with a professional's report as backup. This level of transparency, supported by documentation like repair invoices and warranties, preempts buyer suspicion and demonstrates good faith, which can be invaluable if a dispute ever arises. Honesty on the Colorado seller disclosure form doesn't kill deals; it protects them.

Consequently, for a buyer, the Seller’s Property Disclosure is the starting point for due diligence, not the final word. Scrutinize the document carefully. If the seller notes a past roof repair, ask for the receipts and warranty. If they check “Don’t Know” for the condition of the sewer line, it’s a clear signal to you to spend the money on a sewer scope inspection. The Colorado disclosure requirements are designed to give you a roadmap of the property's known history. Use this roadmap to formulate targeted questions for your own home inspector and to investigate further. Verifying the seller’s claims by pulling permits from the local building department or talking to neighbors can provide a more complete picture, ensuring you are making a fully informed decision before your inspection objection deadline passes.