For our real estate agent and broker friends - or anyone thinking to sell or buy - an informative article appeared in the July/August 2024 edition of the Colorado Lawyer, entitled "Disclosure of Adverse Material Facts and Latent Defects in Real Estate Transactions."
It discusses at length and summarizes disclosure duties connected with real estate transactions in the state, including "adverse material facts" (environmental hazards, zoning violations, structural issues, health risks, etc.) actually known, and "latent defects" (concealed water damage, soil conditions, environmental contamination, (maybe?) lack of building permits, etc.).
Material issues noted in an inspection report following a failed transaction should be disclosed to buyers and sellers. There is no duty to conduct independent investigations or verify inspector information. "Matters of public record" generally are exempt from disclosure requirements.
Violations are enforced by the Colorado Real Estate Commission and/or via state court lawsuits seeking money damages claiming nondisclosure or concealment, negligence, and breach of contract, among others.
Of course, there are numerous exceptions and nuances, and experienced legal advice should be sought for particulars. Call or email us here at Sanderson Law, P.C., if you'd like help or more information. We handle cases in Colorado and Wyoming.
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