Unique Denver Laws on Real Estate Purchases

Real Estate PurchaseAfter years of saving up, you’re finally ready to move into your family home. The great outdoors, the many activities available and the weather can make Colorado someone’s version of paradise.

Like every other American state, buying a home in Colorado is governed by unique state laws. Here are some you might want to know before you buy a home in Denver.

Colorado’s Disclosure Laws

Because of this law, buyers will have access to important information about the home they are purchasing. Information provided by the seller include, not be limited to:

  1. The property belonging to a special taxing district.
  2. The home’s source of drinking (or potable) water.
  3. If the home has ever been a venue for the manufacturing of methamphetamine.
  4. Any future transportation projects (railways, etc.) nearby.
  5. If the property requires a membership to an association (such as those in condominiums or exclusive neighborhoods)

While the disclosure law does offer additional peace of mind to buyers, they shouldn’t replace home inspection or warrantless vigilance from buyers. If you’re buying through a broker, the following information can only be revealed if the seller agrees:

  1. The willingness of the seller to accept a lower price
  2. History of the home, including extraordinary deaths or other occurrences.
  3. The reason the home is on the market.

Turn a Portion of the Home into a Homestead

Turning your home, or a portion of it, into a homestead will shield it from debtors. This law helps prevent anyone from becoming homeless, even during bankruptcy. Hiring a lawyer in Colorado with estate planning expertise will help buyers iron out their options.

Individuals can file to protect up to $60,000 of their equity for bankruptcy protection. While couples won’t be able to double this amount, it already exceeds the federal limit of $22,975.

No Borrowing of Vacuum Cleaners in Denver

On a less serious note, it is actually illegal to lend your vacuum cleaner to your neighbor in Denver. While this is bizarre, this law can prevent the spread of parasites like bed bugs. 

With rising property prices in the Colorado area, buying a home won’t only provide comfort, but can be a great way to invest in the property market.

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