Colorado Contracts #108891-DISCLOSURE, INSPECTION, AND DUE DILIGENCE (Sections 10

DISCLOSURE, INSPECTION, AND DUE DILIGENCE (Sections 10 - 11 of the CBS1)

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Sections 10-11 of the CBS1 document outline the requirements and procedures related to disclosure, inspection, due diligence, and tenant estoppel statements in a property transaction. <br /><br />Section 10 covers various aspects of property disclosure, inspection, indemnity, insurability, and due diligence. The seller is required to provide the buyer with the Seller's Property Disclosure form, disclose any adverse material facts, and provide access to the due diligence documents related to the property. The buyer has the right to inspect the property and terminate the contract if unsatisfactory conditions are found. The buyer is responsible for payment for inspections and must indemnify the seller for any damages caused by the inspections. The buyer also has the right to terminate the contract if property insurance is unsatisfactory. <br /><br />Section 10.6 specifically addresses due diligence documents, including occupancy agreements, leased items documents, and encumbered inclusions documents. The buyer has the right to review these documents and object if they are unsatisfactory, with specific procedures outlined for termination and resolution. <br /><br />Section 10.10 discusses lead-based paint disclosure and assessment requirements. If the property includes residential dwellings constructed before January 1, 1978, the seller must provide a completed Lead-Based Paint Disclosure form. The buyer has the right to terminate the contract if the disclosure is not received or if a risk assessment reveals the presence of lead-based paint hazards. <br /><br />Section 10.12 relates to the disclosure of methamphetamine contamination. If the seller knows that methamphetamine was ever present on the property, they must disclose it. The buyer has the right to terminate the contract if test results indicate contamination that has not been adequately remediated.<br /><br />Section 11, which is intentionally deleted in this version of the contract, pertains to tenant estoppel statements. It outlines the requirements for obtaining and reviewing tenant estoppel statements in transactions involving leased properties.<br /><br />Overall, Sections 10-11 of the CBS1 document provide the necessary guidelines and procedures for disclosure, inspection, due diligence, and tenant estoppel in a property transaction. These sections ensure that both the buyer and seller are aware of all relevant information and can negotiate any necessary changes to the contract based on their findings.

Keywords

disclosure

inspection

due diligence

tenant estoppel

property transaction

property disclosure

due diligence documents

property insurance

lead-based paint disclosure

methamphetamine contamination