Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0370.01 PLC HOUSE BILL 97­1038

STATE OF COLORADO

BY REPRESENTATIVE Young

AGRICULTURE, LIVESTOCK

& 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.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

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:

Article 35.3

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.