In the Colorado Contract to Buy Sell (revised for 2011), there are some changes that you should be aware of prior to inking a contract on your home of choice. One of the most significant changes is the verbiage regarding Inspection Objection and Inspection Resolution. The contract now reads:
10.2. Inspection Objection Deadline. Unless otherwise provided in this Contract, Buyer acknowledges that Seller is conveying the Property to Buyer in an “as is” condition, “where is” and “with all faults”. Seller shall disclose to Buyer, in writing, any latent defects actually known by Seller. Buyer, acting in good faith, shall have the right to have inspections (by a third party, personally or both) of the Property and Inclusions (Inspection), at Buyer’s expense. If (1) the physical condition of the Property, (2) the physical condition of the Inclusions, (3) service to the Property (including utilities and communication services), systems and components of the Property, e.g. heating and plumbing, (4) any proposed or existing transportation project, road, street or highway, or (5) any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory in Buyer’s sole subjective discretion, Buyer shall, on or before Inspection Objection Deadline
10.2.1. Notice to Terminate. Notify Seller in writing that this Contract is terminated; or
10.2.2. Notice to Correct. Deliver to Seller a written description of any unsatisfactory physical condition which Buyer requires Seller to correct.
If written notice is not received by Seller on or before Inspection Objection Deadline (§ 3), the physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer.
10.3. Inspection Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline (§ 3), this Contract shall terminate on Inspection Resolution Deadline (§ 3), unless Seller receives Buyer’s written withdrawal of the Notice to Correct before such termination, i.e., on or before expiration of Inspection Resolution Deadline (§ 3).
So what does this mean? Well, in previous versions of the contract there was no mention that a property would convey "as is, where is" proposed by the state document. This would be addressed in the additional provisions sections or 78230n addressed in the counter proposal by the seller. So now, all properties convey "as is" "where is" and the buyer, similar to times passed, would need to submit a Notice to Correct or Notice to Terminate if an unsatisfactory condition existed.
Furthermore, in previous versions of the contract, if issues were not mutually agreed upon by the Inspection Resolution Deadline, the contract would terminate 24 hours after that deadline. A good common sense change to make the deadline an actual deadline. As far as the presumption of "as is" goes...it has has always been up to the buyer to either request repairs or terminate the contract. Any buyer acting in "good faith" should always perform their due diligence when purchasing a home and consult with a real estate professional on their options.
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