Colorado law regarding real estate disclosure – property stigma

Posted by: Jun 03, 2013By Brian Stutheit

Denver real estate lawyer Brian Stutheit has spoken to realtor associations about their duty to disclose.  Here is some of the law.

Brokers are not liable for non-disclosure of bad things which took place in a house.  The Colorado statute, section 38-35.5-101, says there is  no duty for a broker or salesperson to disclose:
(1) Facts or suspicions regarding circumstances occurring on a parcel of property which could psychologically impact or stigmatize such property are not material facts subject to a disclosure requirement in a real estate transaction. Such facts or suspicions include, but are not limited to, the following:

(a) That an occupant of real property is, or was at any time suspected to be, infected or has been infected with human immunodeficiency virus (HIV) or diagnosed with acquired immune deficiency syndrome (AIDS), or any other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupancy of a dwelling place; or

(b) That the property was the site of a homicide or other felony or of a suicide.