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?
Correct Answer
B) Disclose the observed condition to prospective buyers because it may constitute a known material defect
Under Colorado's Seller's Property Disclosure Act (C.R.S. § 38-35.7-101 et seq.) and CREC regulations, a licensee who observes a condition that may constitute a material defect has an obligation to disclose it to prospective buyers. A broker cannot follow seller instructions that require concealment of potentially material information. The observed mold-like condition must be disclosed.
Why This Is the Correct Answer
Under Colorado's Seller's Property Disclosure Act (C.R.S. § 38-35.7-101 et seq.) and CREC regulations, a licensee who observes a condition that may constitute a material defect has an obligation to disclose it to prospective buyers. A broker cannot follow seller instructions that require concealment of potentially material information. The observed mold-like condition must be disclosed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
More Mandated Disclosures Questions
Sandra is selling her three-unit residential building in Newark, New Jersey. Her listing agent, Tom, advises her that she must complete a Property Condition Disclosure Statement before accepting any offer. Sandra asks Tom what types of conditions the disclosure statement is required to cover. Which of the following best describes the scope of required disclosures under the New Jersey Residential Property Condition Disclosure Act?
Agent must disclose all EXCEPT:
Karen is selling her single-family home in Sioux Falls. Her listing agent, Tom, hands the completed seller disclosure statement to the buyer's agent during the showing. The buyer, Lisa, reviews and signs the acknowledgment form three days later. Under South Dakota law, which statement best describes whether this process was handled correctly?
ND seller disclosure covers:
Under the Idaho Property Condition Disclosure Act, the Property Condition Disclosure Form requires sellers to disclose information about various aspects of the property. Which of the following is NOT typically a category of information required to be disclosed on the Idaho Property Condition Disclosure Form?
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Previous Question
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?
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Elena is purchasing a home in Boulder that was built in 1975. The seller's broker informs Elena that federal law requires a specific disclosure related to the age of the property. Which disclosure is the seller required to provide, and what right does Elena have under that disclosure?