When you sell a home in Colorado, one of the most important documents you’ll complete is the Seller’s Property Disclosure (SPD). This is where you share what you actually know about the property’s condition. It’s not meant to turn you into a home inspector or an engineer. It’s simply your opportunity to tell the truth about what you’ve seen, repaired, or experienced in the home, based on your current actual knowledge.
What the Disclosure Form Actually Says
The official Colorado Seller’s Property Disclosure (Residential) — created by the Colorado Real Estate Commission — begins with this paragraph:
“Seller states that the information contained in this Seller’s Property Disclosure (“SPD”) is correct to Seller’s CURRENT ACTUAL KNOWLEDGE as of this Date. Any changes must be disclosed by Seller to Buyer promptly after discovery. Seller’s failure to disclose a known adverse material fact affecting the Property or occupant may result in legal liability. If the sales contract requires Seller to complete this SPD, this form must be fully completed to Seller’s current actual knowledge, as of the date of the Contract. If Seller has knowledge of an adverse material fact affecting the Property or occupants, it must be disclosed whether there is a specific item on this SPD or not. If the Property is part of a Common Interest Community, this SPD is limited to the Property or unit itself, except as stated in Section O. Broker may deliver a copy of this SPD to prospective buyers.”
That’s a long paragraph — here are a few things to note:
Describe What You Know — Not What You Think
“Current actual knowledge” means what you truly know — not what you suspect or think might be true. If you don’t know the cause, don’t guess at it. Describe what you can see and what you know for certain. For example:
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- What you know: “There is a round water stain on the family-room ceiling, about 8 inches in diameter, near the light fixture.”
- Speculative: “The roof leaks.”
The first statement is factual and based on observation. The second is an interpretation — and it can unintentionally mislead or raise unnecessary concern. It’s fine (and right) to describe both the condition and its cause if you actually know the cause. For instance:
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- Appropriate: “The basement flooded in 2018 after a heavy storm.”
You’re describing an event you experienced, along with a cause you know. - Speculative: “The flooding was caused by poor drainage around the foundation.”
- Appropriate: “The basement flooded in 2018 after a heavy storm.”
If you know the issue is poor drainage — because a professional confirmed it, or you’ve repaired it and understand what caused it — then you’re obligated to disclose that. But if you don’t know the cause, don’t guess. Describe what happened, not what you think explains it.
Disclose Adverse Material Facts — Even If the Form Doesn’t Ask
The SPD attempts to cover a wide range of issues, but it can’t list every possible problem a property might have. That’s why the Commission includes this line: If Seller has knowledge of an adverse material fact affecting the Property or occupants, it must be disclosed whether there is a specific item on this SPD or not. In other words, if you know something about the property that meets that definition — an adverse material fact — you still need to disclose it even if there’s no checkbox for it on the form. If you know it, disclose it — whether the form specifically asks about it or not.
Keep It Current
If you learn new information before closing, please notify us immediately. We can help you properly update the disclosure so everything remains accurate and complete. The SPD requires that any changes be disclosed “promptly after discovery.” That protects everyone — including you — by keeping the information current and transparent.
Why This Matters
Disclosure isn’t just paperwork; it’s protection. Being transparent protects buyers from surprises and protects you from future claims. If you fail to disclose something you actually knew about, and the buyer later discovers it, you could face a claim for nondisclosure or misrepresentation. The SPD says it plainly: “Seller’s failure to disclose a known adverse material fact affecting the Property or occupant may result in legal liability.” The key word is known. You aren’t responsible for discovering hidden defects or offering expert opinions — only for being honest about what you do know.
Our Role
As your broker, our role is to help you understand how to complete the disclosure — not to provide legal advice or interpret the law. We also have my own disclosure obligations under Colorado law. Under C.R.S. § 12-10-407, we’re required to disclose to potential buyers any adverse material facts actually known to us. Our role is to work with you to make sure both of us are transparent and compliant throughout the process. If you ever have questions about whether something qualifies as a “material fact” or how best to word a disclosure, we can help you think it through. If something feels uncertain or has a legal nature, you may also wish to consult an attorney for interpretation.
In Short
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- Disclose what you know, not what you guess.
Stick to what’s within your current actual knowledge. - Describe facts — and, if you know the cause, include it accurately.
It’s fine to say what happened and why, as long as you know both are accurate. - If you know an adverse material fact, disclose it — even if there’s no specific question for it.
- If you learn something new before closing, please let us know so we can assist you in updating the disclosure properly.
- Disclose what you know, not what you guess.