Division of Real Estate.
The Colorado Division of Real Estate oversees legal action and overall governance of Colorado property, while performing many statewide functions. One of the most important functions is to make sure real estate brokers and appraisers are properly trained. The Division of Real Estate aims to teach these respective positions about the rules and regulations regarding real estate, their obligations to sellers and buyers, and recourse that can occur if they do not adhere to the Colorado State laws.
Defects to property must be disclosed to a buyer from the seller and/or the seller’s agent in a real estate transaction in Colorado. If there are latent defects which cannot be seen at the time of the transaction, but could cost the new owner money or injury down the line and they were not disclosed, the seller and/or seller’s agent can be held responsible for costs related to remedying that situation. In extreme cases, the buyer can request that the purchase be rescinded. Latent defects include things like high ticket plumbing problems, electrical problems, roof defects, water damage, code or permit violations, shoddy construction or severe underlying structural issues with the property. A stigmatized property must also be disclosed to a potential buyer in Colorado because it may be considered a latent defect as well.
The National Association of Realtor’s refers to “stigmatized property” as property that has been psychologically impacted by an event occurring on the property, even where there was no physical harm to the property. Selling a property with a “reputation” may be difficult and state laws vary about a seller’s obligation to reveal extraordinary occurrences such as a crime, suicide or unnatural death that occurred on the property or even cases where there are reported “hauntings.” There have been cased where the court acknowledged a buyer’s right to rescind a contract after finding out a family had been murdered in the home, and even cases where hauntings occurred.
Absence of full disclosure.
When full disclosure by a real estate agent is not met causing a someone to buy a property with a latent defect, including stigmatized property, a complaint should immediately be made to the Colorado Real Estate Commission as they are the licensing body for realtors. When a licensee has received written notification from the Commission that a complaint has been filed against them, the licensee shall submit a written answer to the Commission outlining the specific facts surrounding the sale and the complaint. Failure to submit a written answer within the time set by the Commission in its notification shall be grounds for disciplinary action unless the Commission has granted an extension of time for the answer in writing and regardless of the question of whether the underlying complaint warrants further investigation or subsequent action by the Commission. Additionally, a legal claim can be made with the help of a qualified real estate attorney to reach some sort of settlement.
Hire legal counsel.
If you have a real estate problem that devalues a property you are supposed to purchase and the Seller or Seller’s agent has misrepresented facts then you should contact the Sands Law Office for expert assistance to legally resolve the matter.
450 West Avenue #204
Rifle, Colorado 81650
Email: [email protected]
Reed v. King, 193 Cal. Rptr. 130 (Cal. Ct. App. 1983)
Stambovsky v. Ackley, 572 N.Y.S.2nd 672 (N.Y. App. Div. 1991)