Colorado Contracts & Forms Review (2hr) #109783-DISCLOSURE, INSPECTION, AND DUE DILIGENCE (Sections 10

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

Pdf Summary

Sections 10-11 of the CBS1 outline the requirements and procedures for disclosure, inspection, due diligence, and tenant estoppel statements in a property transaction. <br /><br />Section 10.1 states that the seller must provide the buyer with the most current version of the Seller's Property Disclosure form completed by the seller. The seller must disclose any adverse material facts known to them, and any new adverse material facts discovered after the contract is signed must be disclosed to the buyer. The buyer has the right to terminate the contract based on the new disclosure within a certain timeframe.<br /><br />Section 10.3 allows the buyer to conduct inspections on the property at their expense. If any unsatisfactory conditions are found, the buyer can either terminate the contract or submit an objection to the seller to correct the issues. If the objection is not resolved by a certain deadline, the contract will terminate unless the buyer withdraws the objection.<br /><br />Section 10.4 states that the buyer is responsible for any damage caused to the property as a result of inspections they requested, and they must not allow any claims or liens against the property for that work. The buyer also agrees to indemnify the seller for any liability or expenses caused by such work.<br /><br />Section 10.5 allows the buyer to terminate the contract if they are not satisfied with the availability, terms, and conditions, and premium for property insurance on the property.<br /><br />Section 10.6 requires the seller to provide certain documents and information about the property and leased items to the buyer. The buyer has the right to review these documents and object if they are unsatisfactory, and if the objection is not resolved, the contract may terminate.<br /><br />Section 10.7 states that the contract is conditional upon the sale and closing of any property owned by the buyer, and they have the right to terminate if that property is not sold and closed by a certain deadline.<br /><br />Section 10.8 discusses the source of potable water for residential properties and allows the buyer to acknowledge receipt of certain disclosures related to water sources.<br /><br />Section 10.9, 10.10, and 10.12 are deleted as they pertain to tenant estoppel statements, lead-based paint disclosure, and methamphetamine disclosure, which are not applicable in this contract.<br /><br />Section 11 pertaining to tenant estoppel statements is also deleted as there are no leases presumed to exist with the CBS1 contract.

Keywords

CBS1

property transaction

disclosure

inspection

due diligence

seller's property disclosure

buyer's right to terminate

buyer's inspections

objection to seller

conditional contract