What must a licensee disclose about known material facts that could affect a property's value or desirability in Colorado?

• A. Known material facts must be disclosed only if asked by the buyer
• B. Facts discovered after closing need not be disclosed
• C. Only material facts that affect financing will be disclosed
• D. Known material facts that affect value or desirability must be disclosed to the relevant party, consistent with fiduciary duties and law

Answer: (D)

In Colorado, licensees must disclose known material facts that could affect a property's value or desirability to the relevant party, in line with fiduciary duties and state law. This means if a licensee knows about issues that a reasonable buyer would consider important—things like structural problems, water intrusion, or zoning restrictions—those facts should be disclosed during the transaction. The duty isn’t triggered only when someone asks a question, and it isn’t limited to facts that affect financing; it covers any known information that could influence how a buyer values the property. This approach protects all parties and reflects the agent’s obligation to act honestly and in the best interests of their client while complying with legal duties. The other scenarios are incomplete because they either make disclosure conditional on inquiry, limit it to financing-related matters, or suggest disclosure isn’t required after closing, which isn’t correct given the ongoing nature of the duty to disclose known material facts.