Legal Alert - Disclosure Obligations for Sellers of Real Property in Colorado
by Michael Strand and Andrea Fitzgerald
The Colorado Court of Appeals recently decided Gattis v. McNutt, serving as a reminder of sellers’ disclosure obligations in transactions involving residential real property. Sellers of residential property in Colorado generally fill out and provide buyers with Colorado’s standard Seller’s Property Disclosure (“SPD”), the form of which is approved by the Colorado Real Estate Commission. The SPD contains a lengthy list of components of real property, such as “Structural Conditions,” “Mechanical” and “Environmental Conditions,” and asks sellers to disclose whether they are aware of any issues with respect to each item listed.