THE HOME INSPECTION - PURPOSE AND SCOPE
In Colorado, it is not a requirement to provide the Buyer(s) with a Property Disclosure Statement (SPDS) but is always recommended. It will be disclosed in the MLS if it is or is not being provided by the Seller. The SPDS must be current at the time of the listing contract and then verified that all information remains the same or identify items that have changed at time of offer. Buyers who purchase a bank foreclosure will not receive a SPDS. Banks are exempt from having to provide the buyer a SPDS.
The SPDS will reveal material facts about the physical condition of the property known by the seller and lists repairs the seller is aware were made. The Seller Disclosure (SPDS) does not take the place of a buyer's inspection that is usually made after a contract is agreed upon. The purpose of the inspection is to find major - not cosmetic - defects in the home. It is highly advisable to hire a professional inspector to do this.
In the event a major defect is discovered and the buyer and the seller cannot agree upon a resolution of the problem, the buyer may elect to cancel the contract within the inspection period and have their earnest money (Click Here to Continue Reading!)