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.
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A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
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Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
More Mandated Disclosures Questions
A buyer asks a Georgia licensee to interpret a FEMA flood zone map and determine whether the property is at risk of flooding. The licensee has no specialized training in flood mapping or hydrology. How should the licensee handle this request?
A buyer's agent discovers through public records that the property his client is under contract to purchase was built on a former landfill site that was remediated to EPA standards 15 years ago. The seller's disclosure form makes no mention of this history. What is the buyer's agent's primary obligation?
A buyer's agent discovers that a listed property contains an in-law suite that was built without permits and generates rental income for the seller. The agent also determines that the local zoning ordinance prohibits accessory dwelling units used as rental units in this residential zone. What are the buyer's agent's disclosure obligations?
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Buyer's agent Tom learns from a neighbor that the property his client wants to purchase was the site of a suicide two years ago. The seller has not disclosed this information. What are Tom's obligations under Georgia law?
- → A Georgia licensee learns that a property has a known foundation crack that could affect structural integrity. The seller insists this is not a big deal and points out that a previous occupant died on the property, suggesting the licensee should focus on disclosing that instead. Under Georgia law, which statement correctly describes the licensee's disclosure obligations?
- → A Georgia licensee is preparing disclosures for a townhome sale. The property is located in an area where flood maps have recently been updated, the seller previously experienced minor water intrusion but considers it resolved, and certain environmental conditions are documented in public records. Which statement best describes the licensee's disclosure obligations?
- → At a brokerage training session in Augusta, Riley is given a Georgia scenario. Example 13 is under review. The office is debating the claim that consumers should rely solely on the licensee for mold, engineering, or survey conclusions because referrals show weakness. It is comparing that claim with the rule that flood-zone and map-related issues should be described carefully, with consumers directed to reliable sources rather than to unsupported personal interpretation. The review topic is flood maps, changing conditions, historical seller knowledge, and the limits on a licensee’s interpretation of technical data. Which statement is correct?
- → At a brokerage training session in Augusta, Avery is given a Georgia scenario. Example 12 is under review. The office is debating the claim that consumers should rely solely on the licensee for mold, engineering, or survey conclusions because referrals show weakness. It is comparing that claim with the rule that known material facts are not erased simply because the issue also appears in public records. The review topic is flood maps, changing conditions, historical seller knowledge, and the limits on a licensee’s interpretation of technical data. Which statement is correct?
- → Buyer's agent Mark discovers through public records that the property his clients want to purchase has an active code violation for an unpermitted addition. The listing doesn't mention this violation. What should Mark do under Georgia disclosure and representation requirements?
- → Broker Sarah discovers that a property she is listing has a history of flooding that occurred 3 years ago, which the seller failed to mention. The seller insists it's not relevant since repairs were made. Under Georgia law, what is Sarah's obligation regarding this information?
- → A buyer's agent is aware that a property sits in a FEMA-designated flood zone based on publicly available flood maps. The seller's disclosure form does not mention flooding. When the buyer asks the agent about potential flood risk, which approach best reflects the licensee's duty under Georgia law?
- → A seller informs his listing agent that a persistent condition in the neighborhood significantly disrupts normal use and enjoyment of the property. The seller asks whether this condition must be disclosed to prospective buyers. How should the agent advise the seller under Georgia disclosure requirements?
- → Seller Mike believes that failing to disclose a death on his property could result in the buyer suing him later. His agent tells him that Georgia law requires disclosure of all deaths to avoid future liability. Is this advice correct?
- → A buyer asks a Georgia licensee whether any registered sex offenders live near a property listed for sale. Under O.C.G.A. § 44-1-16, how should the licensee handle this inquiry?
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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?