Denver, CO asked in Real Estate Law for Colorado

Q: Is unpermitted work during a house flip required material fact for disclosure in the sale/purchase process in Denver, CO

I recently bought a house that I have found out does not have permits pulled for any of the flip work that was done and this was not disclosed during the sale process. I am now having multiple problems only a few months later and need to know if unpermitted work is a required material fact needing to be disclosed in Denver. Thank you.

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1 Lawyer Answer
James A. Greer
James A. Greer
  • Boulder, CO
  • Licensed in Colorado

A: Dear Home Purchaser: Material facts need to be disclosed. And, unpermitted work MAY rise to the level of materiality. However, it depends on the nature, scope and type of unpermitted work. If the problems you are experiencing are directly related to the unpermitted work, and if knowledge that this work was unpermitted would have made a reasonable buyer reconsider the purchase (or make pertinent counter offers), then yes you should strongly consider pursuit of the mediation clause in your Purchase Contract. Hire an attorney to serve a Demand then pursue Mediation if that is not successful.

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