Patricia is selling a townhome in a Colorado planned community. She provides the buyer with the HOA resale certificate, budget, and reserve study. The buyer reviews the documents and discovers the HOA has a significant special assessment planned for next year. Under CCIOA, what right does the buyer have?
Correct Answer
B) The buyer may terminate the contract based on the HOA document review within the applicable review period
Under the Colorado Common Interest Ownership Act (CCIOA), C.R.S. § 38-33.3-101 et seq., buyers have the right to terminate the contract based on their review of the required HOA documents — including the resale certificate, budget, reserve study, and governing documents — within the applicable review period. A pending special assessment is a legitimate basis for exercising this termination right.
Why This Is the Correct Answer
Under the Colorado Common Interest Ownership Act (CCIOA), C.R.S. § 38-33.3-101 et seq., buyers have the right to terminate the contract based on their review of the required HOA documents — including the resale certificate, budget, reserve study, and governing documents — within the applicable review period. A pending special assessment is a legitimate basis for exercising this termination right.
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Related Topics & Key Terms
Key Terms:
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Previous Question
Kevin is selling his home in Fort Collins. A neighbor mentions to Kevin that a registered sex offender recently moved onto the block. A prospective buyer, Lisa, asks Kevin's listing broker whether there are any registered sex offenders in the neighborhood. Under Colorado law, what is the broker's proper response?
Next Question
Robert is a Colorado broker associate listing a home in Colorado Springs. During a walkthrough, he notices what appears to be mold growth behind a loose baseboard. The seller insists it is just discoloration from an old spill and asks Robert not to mention it to buyers. What is Robert's most appropriate course of action?