Agency
In Colorado, the phrase 'caveat emptor' (buyer beware) has been largely replaced by:
AA. The seller's right to sell as-is
BB. Required seller disclosures (SPD form), broker disclosure duties, and inspection contingencies — creating a more informed transaction environment✓ Correct
CC. Government inspection of all properties before sale
DD. Mandatory home warranties on all sales
Explanation
The traditional caveat emptor doctrine (buyer beware) has been substantially replaced in Colorado by: (1) mandatory seller disclosure (Seller's Property Disclosure form); (2) broker duties to disclose known material facts; (3) buyer inspection rights and contingencies in the CBS contract; and (4) Colorado's consumer protection laws. Together these create a more informed marketplace than traditional caveat emptor.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
Disclosure Requirements
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