Seller’s Property Disclosure
What is a Seller’s Property Disclosure?
In Colorado, Sellers are required to fill out a Seller’s Property Disclosure form that informs Buyers of any knowledge the Seller has with respect to the property being sold. There are standard forms for residential, land, and commercial that the Seller can fill out based on his or her knowledge. It is mandatory in Colorado to give full disclosure of any known issues at the time of sale. This applies not only to the persons selling the home, but for the realtor as well that is representing the Sellers.
In the Colorado Contract to Buy and Sell Real Estate, there is a Seller’s Property Disclosure deadline line item that must be filled in with a date. The Seller then agrees to have the appropriate form completed by this date. The Seller signs the disclosure and it is presented to the Buyer. The Buyer may have questions that can be relayed back to the Seller for further information. For example, perhaps it is disclosed that there was a leak in the ceiling. The Buyer may ask for details on the date it occurred, the cause, and the actions taken to correct the problem.
If after the Seller’s Property Disclosure form is received and the Buyer is no longer comfortable with the purchase of the property, he or she may give a Notice to Terminate on or before the Due Diligence Documents Objection Deadline, a date that is specified in the Colorado Contract to Buy and Sell Real Estate. However, if the Buyer accepts the disclosure, then the Buyer needs to sign the disclosure acknowledging receipt of the disclosure and acceptance.
Seller’s Property Disclosure Forms
Below are the blank forms that Sellers must complete. It is important to note that if a Seller does not have information or knowledge about an item or the answer is “no”, then the form will be blank for that line item. It is not uncommon to see a form that appears to have not been filled out since all line items are blank. This is not a bad thing.
If a property is any type of residential property, such as a condo, townhome, duplex, or single family home, the Residential Seller Property Disclosure Form is used. For any commercial space or land sale, the appropriate disclosure forms are completed.