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.