Grace is selling a home in Jefferson County, Colorado. She knows the property has a radon level that tested at 6 pCi/L in the basement two years ago but has not retested since. She does not include this information on the Seller's Property Disclosure form. Her broker, David, is also aware of the prior test results. Which of the following best describes the legal exposure for Grace and David?
Correct Answer
D) Both Grace and David may face liability because the prior radon test result is a known material fact that should be disclosed
Under Colorado's Seller's Property Disclosure Act (C.R.S. § 38-35.7-101 et seq.) and CREC regulations, known material facts — including prior radon test results — must be disclosed regardless of when the test was conducted. Radon levels above 4 pCi/L (the EPA action level) are material to a buyer's decision. Both Grace, as the seller, and David, as the broker who is aware of the test results, have disclosure obligations. A broker cannot remain silent about known material defects simply because the seller fails to disclose them.
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, known material facts — including prior radon test results — must be disclosed regardless of when the test was conducted. Radon levels above 4 pCi/L (the EPA action level) are material to a buyer's decision. Both Grace, as the seller, and David, as the broker who is aware of the test results, have disclosure obligations. A broker cannot remain silent about known material defects simply because the seller fails to disclose them.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
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.
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Previous Question
A Colorado broker associate is representing a seller whose property is located near a Superfund environmental cleanup site. The buyer has not asked about environmental issues. The broker is aware of the cleanup site's proximity because it was mentioned in a recent local news article. What is the broker's most appropriate action under Colorado law?
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Which of the following categories of information is specifically covered by the CREC-approved Seller's Property Disclosure form in Colorado?