A Colorado seller fails to disclose a known material defect — a cracked foundation — on the CREC-approved Seller's Property Disclosure form. The buyer discovers the defect after closing. Under the Colorado Seller's Property Disclosure Act, what remedies may be available to the buyer?
Correct Answer
D) The buyer may seek rescission of the contract or monetary damages from the seller
Under C.R.S. § 38-35.7-101 et seq., failure by a seller to disclose known material defects can result in rescission of the contract or monetary damages. The buyer is not limited to filing a regulatory complaint — civil remedies are available when a seller conceals or fails to disclose material defects.
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Previous Question
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?
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James is selling a farm in Pueblo County, Colorado. The property has historically used water from an irrigation ditch under a decree with a priority date of 1887. James does not mention the water rights in the listing or on the disclosure form. Under Colorado law, what is the most significant concern with James's approach?