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Whose obligation is it to disclose information about a property?
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In Colorado Real Estate there is a form called the “Sellers Disclosure”. After a property goes under contract the seller is obligated to disclose his knowledge of the state of the property. Has there been any roof leaks, what type of heating system is there in the house, and so fort. If the property has been built before 1978 the seller will also sign a “Lead Based Paint Disclosure” which warns of the heath threats that can be associated with lead based paint.
The listing agent is also obligated to disclose material adverse facts about the property. He might be acting as a seller’s agent with the best interests for the seller at heart, but that does not free him from the obligation to disclose adverse facts that he knows about.
Imagine a seller’s agent looking at the basement and seeing mold in every corner. The seller then quickly paints the basement to hide the mold from any potential buyers. The sellers agent would still need to disclose the mold problem to any potential buyers. |
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