Sandra is selling her home in Larimer County, Colorado. Three years ago, a licensed contractor confirmed the presence of mold caused by a slow roof leak; the leak was repaired and the mold was professionally remediated. Sandra believes the problem is fully resolved. When completing the CREC Seller's Property Disclosure form, Sandra tells her broker she does not need to disclose the past mold issue because it no longer exists. Which of the following best describes Sandra's disclosure obligation under Colorado law?

Correct Answer

B) Sandra must disclose the prior mold condition and the remediation performed, because it is a known material fact regardless of whether the problem has been corrected

Under the Colorado Seller's Property Disclosure Act (C.R.S. § 38-35.7-101 et seq.), sellers must disclose all known material facts about the property's condition — including prior environmental conditions that have been remediated. The fact that mold was confirmed and remediated is a known material fact that a reasonable buyer would consider significant. Disclosure of both the prior mold condition and the remediation performed is required. The standard is whether the seller has knowledge of the condition, not whether the condition currently exists.