Colorado Seller Nondisclosure and Hidden Defect Lawyer

You did your due diligence, closed on the house and moved in. Then the basement flooded, the foundation started moving, or you found repairs that were clearly made to cover up a bigger problem. If the seller knew about a serious defect and didn't tell you, Colorado law may let you hold them accountable even after closing.

The Seller's Duty to Disclose in Colorado

Colorado has rejected a pure "buyer beware" approach. Since the Colorado Supreme Court's decision in Cohen v. Vivian (1960), a seller who knows of a hidden defect that materially affects the property's value or safety must disclose it to a buyer who doesn't know about it. Residential sellers also typically complete the Colorado Real Estate Commission's Seller's Property Disclosure form, which asks about the roof, structure, water, drainage, soils, plumbing, mold and more. Certain conditions, such as a property's past use to manufacture methamphetamine, carry their own statutory disclosure requirements.

Examples of Undisclosed Defects

  • Foundation movement, structural repairs or expansive soil problems

  • Past flooding, basement water or chronic drainage issues

  • Roof leaks and prior water damage

  • Mold, including mold hidden behind fresh paint or new drywall

  • Sewer line, septic or well problems

  • Unpermitted additions, basements or remodels

  • Prior insurance claims for damage that was never properly repaired

Possible Legal Claims

Depending on the facts, a buyer may have claims for fraudulent concealment, fraudulent misrepresentation, negligent misrepresentation, breach of contract, and violations of the Colorado Consumer Protection Act. Concealment usually involves actively hiding a problem, like painting over water stains or rearranging storage to block cracks. Misrepresentation involves a false statement, including a false answer on the disclosure form. Claims may also extend to listing agents, builders or others who knew about the problem.

What You Can Recover

Recoverable damages may include the cost to repair the defect or the reduction in the property's value, related damage and investigation costs and, in some cases, attorney fees. In serious cases involving fraud, rescission (unwinding the sale) may be possible.

Frequently Asked Questions

I bought the house "as is." Do I still have a claim? Possibly. An as-is clause generally protects a seller from claims about conditions it didn't know about, but it usually doesn't protect a seller who lied or actively hid a known defect.

My inspector didn't find the problem. Does that hurt my case? Not necessarily. A defect that a reasonable inspection couldn't reveal is exactly the kind of hidden defect a seller must disclose. Your inspection report can actually help show the problem wasn't visible.

How do I prove the seller knew? Evidence often comes from prior repair invoices, contractor records, insurance claim history, neighbors, HOA records, permit files and the condition of recent repairs. I know where to look.

How long do I have? Fraud-based claims in Colorado generally must be brought within three years of discovering the fraud, but other claims may have shorter deadlines. Act promptly.

Contingent fee representation is available for qualifying nondisclosure claims, and hourly arrangements are available for other matters. Call 303-409-7529 for a free case review.