First Regular Session
Sixty-first General Assembly
LLS NO. 970370.01 PLC
HOUSE BILL 971038
STATE OF COLORADO
BY REPRESENTATIVE Young
& NATURAL RESOURCES
A BILL FOR AN ACT
CONCERNING NOTIFICATION TO THE BUYER OF A NEW RESIDENCE
THAT THE AQUIFER THAT SUPPLIES WATER TO THE RESIDENCE IS BEING
DEPLETED AT A RATE FASTER THAN IT IS BEING RENEWED.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Requires the seller of a new residence to notify
the buyer in writing if the aquifer that supplies the residence
with water is being depleted faster than it is being renewed.
Makes the seller liable for damages to the buyer, including court
costs and attorney's fees, that result from the seller's failure
to notify the buyer of the depletion of the aquifer.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Title 38, Colorado Revised Statutes, 1982 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW ARTICLE to read:
Disclosure Of Water Supply For New Residence
3835.3101. Disclosure water supply from aquifer being depleted. (1) THE SELLER OF A NEW RESIDENCE WHOSE WATER SUPPLY DERIVES FROM A WELL IN AN AQUIFER FROM WHICH THE WATER IS BEING DEPLETED AT A RATE FASTER THAN THE WATER IS BEING RENEWED, AS DETERMINED BY THE STATE ENGINEER, SHALL DISCLOSE SUCH FACT TO THE BUYER OF THE NEW RESIDENCE IN WRITING AT LEAST THIRTY DAYS PRIOR TO CLOSING. IF THERE IS A WRITTEN CONTRACT FOR PURCHASE AND SALE OF THE NEW RESIDENCE, THE DISCLOSURE SHALL BE INCLUDED IN THE CONTRACT. FOR PURPOSES OF THIS ARTICLE, "NEW RESIDENCE" MEANS A RESIDENCE THAT IS NEWLY CONSTRUCTED AND HAS NEVER BEEN OCCUPIED.
(2) THE OBLIGATION TO PROVIDE THE DISCLOSURE SET FORTH IN SUBSECTION (1) OF THIS SECTION SHALL BE UPON THE SELLER, AND, IN THE EVENT THE SELLER FAILS TO PROVIDE THE WRITTEN DISCLOSURE TO THE BUYER OR INCLUDE THE DISCLOSURE IN THE CONTRACT FOR PURCHASE AND SALE OF THE NEW RESIDENCE AS DESCRIBED IN SUBSECTION (1) OF THIS SECTION, THE BUYER SHALL HAVE A CLAIM FOR RELIEF AGAINST THE SELLER FOR ALL DAMAGES TO THE BUYER RESULTING FROM SUCH FAILURE, INCLUDING COURT COSTS AND ATTORNEY'S FEES.
SECTION 2. Effective date applicability. This act shall take effect July 1, 1997, and shall apply to real estate transactions in which closing occurs on or after said date.
SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.