Real Estate Term of the Day: Disclosure Statement

Real Estate Term of the Day: Disclosure Statement

DISCLOSURE STATEMENT – a statement required by law, in which sellers of particular kinds of property, or under certain circumstances, must reveal specified information to potential buyers (Barron’s Dictionary of Real Estate Terms)

According to the Colorado Exclusive Right-to-Sell Listing Contract (Section 18.2 SELLER’S OBLIGATIONS); the disclosure by the seller of known material latent (not obvious) defects is required by law.  A seller is not required by law to provide a written disclosure of adverse matters regarding the Property.  However, full disclosure of the property is strongly advised.  Failure to disclosure a known material defect may result in legal liability.

In the State of Colorado, we use 4 forms for disclosure purposes:

These documents will be provided to the buyers once an agreement of sale has been made (on or before the Seller’s Property Disclosure Deadline, per the Colorado Contract to Buy and Sell Real Estate)

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