Bill Will Require Seller Disclosure Of Past Use of Property As Methamphetamine Laboratory
SB 06-02, entitled 'Concerning Mandatory Disclosure In Connection With The Purchase Of Residential Real Property Of Whether The Property Has Been Used As A Methamphetamine Laboratory,' is sponsored by Senator Shaffer and Representative Pommer. The bill, which is on its way to the Governor, addresses the health harms caused by the lingering chemicals left after other discernable signs of methamphetamine production have been cleaned up.
Among the bill's protections for unknowing buyers is the requirement that a seller of residential property disclose in writing whether the seller is aware that the property was previously used as a methamphetamine lab. A seller who fails to make this disclosure will be liable for 1) the costs to remediate the property as required by law; 2) the costs related to health injuries caused to the residents of the property by past methamphetamine production on the property; and 3) reasonable attorney fees for collection of costs from the seller. The buyer has three years to make such a claim.
The seller does not have this affirmative duty to disclose if the property was remediated in accordance with the standards required by C.R.S. 25-18.5-102. (Click here for a copy of the standards promulgated by the Colorado Department of Public Health and Environment.)
Associations should keep in mind that if this bill becomes law, this disclosure requirement will also apply to associations who are the seller of a unit. (For example, if an association is selling a unit it acquired through a foreclosure.) If signed, the law will take effect January 1,2007 and will apply to all contracts for the purchase and sale of residential real property that are offered or entered into on or after that date. We'll let you know the status of the bill once it becomes known.