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Mandated DisclosuresEnvironmentalMEDIUM

A buyer's broker in Colorado is representing the Nguyen family in the purchase of a rural property in Weld County. The family asks their broker whether the property's well water has ever tested positive for nitrate contamination. The listing agent says the seller is unaware of any such testing. Under Colorado disclosure law, which statement best describes the broker's obligation in this situation?

Correct Answer

B) The buyer's broker should advise the Nguyens to request a water quality test as part of their due diligence and review any available disclosures

Under the Colorado Seller's Property Disclosure Act (C.R.S. § 38-35.7-101 et seq.), the seller is required to disclose only known material defects. Because the seller has no knowledge of nitrate testing or contamination, no affirmative disclosure is triggered on the seller's side. However, the buyer's broker has a duty to their client and should advise the Nguyens to conduct due diligence — including requesting a water quality test — as part of the inspection and due diligence period under the CREC Contract to Buy and Sell Real Estate.

Answer Options
A
The buyer's broker must conduct independent water testing before the contract can be executed
B
The buyer's broker should advise the Nguyens to request a water quality test as part of their due diligence and review any available disclosures
C
The listing broker is required to order a nitrate test on the seller's behalf before completing the Seller's Property Disclosure form
D
No disclosure is needed because the seller has no knowledge of contamination, and Colorado law only requires disclosure of actual known defects

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Related Topics & Key Terms

Key Terms:

water_quality_disclosurebuyers_broker_dutydue_diligencerural_propertyenvironmental_disclosure
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