Colorado Senate Bill 06-89

Colorado SB06-89 became effective 5/26/06 with the exception of a portion of the seller's disclosure section and a required dispute resolution Policy which becomes effective 1/1/07. SB06-89 corrected aspects of the 2005 Senate Bill, SB05-100, that needed clarification and created unreasonable functionality. Policies, Procedures, Rules and Regulations which conflict with SB06-89 shuld be revised. DARCO will draft updates for our clients' 2005 Rules and Regulations, at no cost, so they can comply with SB06-89.

If your HOA is in Colorado and you would like a copy of SB06-89, contact me and request an email copy.

You may be interested in the following required seller disclosure statement:
38-35.7-102. Disclosure - common interest community - obligation to pay assessments - requirement for architectural approval.
(1) ON AND AFTER JANUARY 1, 2007, EVERY CONTRACT FOR THE PURCHASE AND SALE OF RESIDENTIAL REAL PROPERTY IN A COMMON INTEREST COMMUNITY SHALL CONTAIN A DISCLOSURE STATEMENT IN BOLD-FACED TYPE THAT IS CLEARLY LEGIBLE AND IN SUBSTANTIALLY THE FOLLOWING FORM:

THE PROPERTY IS LOCATED WITHIN A COMMON INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION FOR SUCH COMMUNITY. THE OWNER OF THE PROPERTY WILL BE REQUIRED TO BE A MEMBER OF THE OWNER'S ASSOCIATION FOR THE COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS AND RULES AND REGULATIONS OF THE ASSOCIATION. THE DECLARATION, BYLAWS, AND RULES AND REGULATIONS WILL IMPOSE FINANCIAL OBLIGATIONS UPON THE OWNER OF THE PROPERTY, INCLUDING AN OBLIGATION TO PAY ASSESSMENTS OF THE ASSOCIATION. IF THE OWNER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO PAY THE DEBT. THE DECLARATION, BYLAWS, AND RULES AND REGULATIONS OF THE COMMUNITY MAY PROHIBIT THE OWNER FROM MAKING CHANGES TO THE PROPERTY WITHOUT AN ARCHITECTURAL REVIEW BY THE ASSOCIATION (OR A COMMITTEE OF THE ASSOCIATION) AND THE APPROVAL OF THE ASSOCIATION. PURCHASERS OF PROPERTY WITHIN THE COMMON INTEREST COMMUNITY SHOULD INVESTIGATE THE FINANCIAL OBLIGATIONS OF MEMBERS OF THE ASSOCIATION. PURCHASERS SHOULD CAREFULLY READ THE DECLARATION FOR THE COMMUNITY AND THE BYLAWS AND RULES AND REGULATIONS OF THE ASSOCIATION.

Swan, in Colorado the Declaration used to provide at closing. But with all the papers to sign no one has the time to read, much less study, this 60 page document. The new Colorado statutes requires all important HOA documents to be provided prior to final commitment and long before closing. I think this is a much better process.

Please send me aopy of SB06-89 I am secretary of my hoa in colorado springs. thank you, Tobi Carazo
[email protected]

Roger,
I have serious doubts about your last sentence (the "provided prior to final committment part"). That was true under SB-100. But SB-089 repeals CRS 38-33.3-223, entirely. It looks to me now like the buyer has to be smart enough to request the documents rather than having them provided by law before the title deadline. I'm still studying exactly what is supposed to happen here.

Apparently my copy was not the final copy which got signed into law.

ANYONE WHO WAS PROVIDED A COPY OF THE PRELIMINARY VERSION OF SB06-89 FROM ME CAN GO TO http://www.hoalegislate.com TO VIEW THE FINAL VERSION.

Thank you Lou for bringing this to my attention. Lou sent me an email and indicated he believes buyers should be provided the HOA documents in advance of closing. I totallin agree with Lou. In fact I will recommend to the HOAs we manage to maintain their current Rules and Regulations which require disclosing this information plus more that SB-100 did not require; such as the form - Request to Modify the Exterior of the Property.