A Colorado buyer and seller executed the CREC Contract to Buy and Sell Real Estate. The seller failed to deliver the required HOA resale certificate and governing documents within the deadline specified in the contract. The buyer, who was unaware of any HOA issues, chose not to terminate during the HOA document review period. After closing, the buyer discovered the HOA had a pending special assessment of $25,000. Which statement best describes the buyer's legal position?
Correct Answer
B) The buyer may have a claim against the seller for breach of contract based on the seller's failure to timely deliver required HOA documents, separate from the document review waiver
Under CCIOA (C.R.S. § 38-33.3-101 et seq.) and the CREC contract, the seller has an affirmative obligation to timely deliver HOA documents including the resale certificate, which must disclose pending special assessments. The seller's failure to deliver documents on time is a separate breach of contract obligation. Even if the buyer did not terminate during the review period, the seller's breach of the delivery obligation may give rise to a damages claim — particularly where the failure to deliver prevented the buyer from making an informed decision about the pending assessment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
More Contracts Questions
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Specific performance in North Dakota:
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