Below is a list of the normal disclosures that go along with property sold in Colorado. Each one has a distinct purpose.
All the Disclosures just need a signature except for one…the Lead Based Paint Disclosure (if applicable). On that form, in Section H, you need to make a choice by checking one box or the other.
SELLER’S PROPERTY DISCLOSURE:
This form discloses to you everything that the seller knows about the property (good, bad and ugly). The important thing to know about this form is that it requires the seller to be TRUTHFUL but it does not require the seller to be ACCURATE. In other words, if they say “No electrical issues” because they are truly unaware of any, but then we find electrical issues, there is no recourse…so only things known to the seller are required to be disclosed. Also, please note, by signing it you`re NOT agreeing to the conditions listed, you`re simply acknowledging receipt of the document.
SQUARE FOOTAGE DISCLOSURE:
This one shows you how the seller and listing agent came up with the square footage that they are advertising for the property.
This document is approval by you to use the Title Company listed in the contract to conduct the closing.
LEAD BASED PAINT DISCLOSURE (if applicable):
This tells you that this property was built prior to 1978 when lead based paint was outlawed, therefore, it probably has lead based paint in it somewhere. On this one, you will need to indicate on the form by choosing the appropriate box in Section H if you want to have the home inspected for Lead Based Paint or not. You can, but it is an additional cost. Here’s a link to the Lead Based Paint brochure describing the risks and hazards according to the EPA if you’d like to read more about it: http://www.epa.gov/lead/pubs/leadpdfe.pdf
This basically tells you that mold is a risk and it could exist in the house. If you area concerned with the presence of mold, you should order a mold test by a licensed professional.
SOURCE OF WATER ADDENDUM (if applicable):
This discloses to you where the water comes from (ie. Denver Water, etc.) that services the home.
This discloses to you what inspections are available to you and recommended by us. In a perfect world, all our clients would do all of them…but we also know that’s not always realistic given the costs.
AFFILIATED BUSINESS DISCLOSURE (if applicable):
This discloses to you that a company or person is in some way related to another company or person within the transaction. For example, sometimes the listing agent’s firm may be owned by the same company that also owns the title company that is performing the closing. Another example is that Thrive Real Estate Group is related to Colorado Property Solutions who performs the Contract Management Process. Transparency is required in these cases, so that you are aware of the different companies involved in your transaction, how they’re related to one another, and how they’re paid.
SHORT SALE ADDENDUM (if applicable):
This discloses to both you and the buyer what your rights are within this particular contract since it is indeed a short sale. It also imposes specific dates for submission to and acceptance by the bank. As with all the dates and deadlines, these can be extended so long as both buyer and seller agree.
As always, let me know if you have any questions or concerns.