Denver Homes Online

Legal Disclosure Risks And Errors Sellers Make

Don't Allow Non-Disclosure To Lead You Into Court

In Colorado, home sellers are presumed to have sold their home or property free of material defects, unless those defects have (timely) been disclosed by the seller.  Remarkably, most sellers do not understand the law, or the Legal Disclosure Risks that they make by their lack of understanding of those risks.

Penalties For Non-Disclosure

Failure to disclose any known defects may result in legal liability with penalties ranging from civil damages, to even criminal negligence.  Real estate sales carry a fair amount of legal risk because of the size and monetary significance of the transactions. 

Majority Are Seller Lawsuits

Did you know that almost all residential litigation commenced in Colorado real estate are lawsuits filed against the sellers?  Just knowing this veritable fact should prompt every seller to take the disclosure obligations seriously.

Sellers Have Knowledge

Why do the legal risks primarily impact sellers?  It's because inaccurate, untruthful, or non-disclosure of certain defects or facts can affect the value, desirability, or even the salability of a seller's home or property.

Sellers Benefit From The Advantage

Trying to cover-up problems or by not disclosing them, can have monetary benefits for a seller. That is why some owners choose to not fulfill their disclosure obligations openly or carefully. 

"As-Is" - Is No Safe Haven

Interestingly, some sellers have been led to believe that by declaring they are selling in “as-is” condition, or by attempting to "disclaim" certain knowledge of their property defects, these announcements or disclaimers will prevent them from having to truthfully disclose.  That is simply untrue.  Sellers who choose to disclaim known defects, can be later sued for their failure to disclose.

Buyers Feel Sellers Withhold

When defects are eventually discovered, most homebuyers tend to believe that the seller knew of the defects and didn't tell them about it.  If the non-disclosure can be reasonably proven, the buyer may have a claim against the seller.  The buyer will allege that they were prevented from making informed decisions about the property at time of sale.  

Most Legal Disputes Avoidable

The vast majority of seller non-disclosures which result in legal disputes are completely and entirely avoidable.  Most sellers can adequately protect themselves by applying some simple risk-reduction strategies, which will minimize their legal exposure.

Disclose - And Still Sell The Property

Because Colorado is a property disclosure state with clear laws, we've prepared a special article about these legal disclosure risks, which we've entitled "How To Turn A Scary Disclosure Into A Welcome One - Without Losing The Buyer".  This helpful article will guide you towards making all of the required disclosures, by minimizing any risk of losing the sale.  To get your FREE copy, simply fill out the easy form below. Then, just check your email.