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Real Estate Law in Colorado

What Is Real Estate Law?

Are you getting ready to purchase or sell some property? Are you involved in a property or real estate dispute? Or, maybe you are having trouble getting your landlord to make repairs to the home. 

Whether or not you are a property owner or tenant, you have rights under Colorado real estate law. Not all residential and commercial real estate transactions execute perfectly. Sometimes unexpected issues can occur such as property rights, access, liabilities, and more. Furthermore, legal matters involving real estate transactions are often complex and are not just limited to the property owners.

Types of Real Estate Law Disputes

Disputes involving real estate in Colorado are very common and some of them are quite complex. They often require the intervention of the courts. Typically courts are seen as the most biased party.  Learn more about the different types of real estate disputes below.

Escrow Deposit 

If you decide to purchase any Colorado property, there are certain steps anyone who is involved must take. One is having an escrow account. A common reason escrow disputes occur is when the closing process fails and the buyer and seller cannot agree on what happens with the funds.

Easement Real Estate Dispute

Easement disputes are one of the most common forms of real estate disputes between neighbors, especially when property ownership changes. An easement allows other people or parties access to use certain portions of your property. Easements are not always granted by a property owner. Information regarding easements is often included in Colorado property deeds.

For example, a neighbor may feel they have the right to access a portion of your property because a previous owner allowed them to for years. One step you can take to resolve the matter before pursuing litigation is talking amicably with the other party.

Landlord/Tenant

Disputes often arise when Colorado landlords and tenants cannot agree on repairs, rent arrears, and more. Tenant and landlord laws are very complex and failure to adhere to them can cause either party to violate the rights of the other.

Colorado’s Rights in Residential Lease Agreements Act dictates that landlords must first apply tenant payments to rent. All before applying any amount to a late fee debt. Additionally, landlords can’t evict tenants for non-payment of late fees. Colorado recently enacted SB21-173. This now prohibits landlords from charging late fees until after the rent is at least seven days late. Furthermore, late fees can not be more than 5% of the tenant’s rent, or $50.

Contract Breaches

In , real estate transactions are only enforceable with a valid contract. However, not all contracts meet the necessary legal standards. The specific requirements for a valid real estate agreement vary by state, and missing key elements or including unclear language can lead to disputes between buyers and sellers.

Real estate contracts are legally binding documents, and any breach can create significant complications. To protect yourself, ensure that any agreement you enter is clear, complete, and mutually beneficial. Never proceed with a real estate transaction without a properly drafted and enforceable contract.

Fraud/Omissions

Proving fraud in a real estate transaction can be an uphill battle. It is almost always necessary to work with Colorado real estate lawyers to straighten things out.

According to the Colorado Department of Regulatory Agencies, real estate fraud is on the rise in Colorado. Three of the most common schemes are escrow wire fraud, loan flipping, and rental scams. Colorado’s theft laws govern most real estate fraud cases. Consequently, the class of the crime depends on the value of the theft. For example, theft of property under $2,000 is a misdemeanor. However, if the value of the real estate fraud is between $2,000 and $5,000, the crime is a Class 6 felony. The punishment for this felony is typically 12-18 months in prison. As well, there are potential fines of up to $100,000.

Boundary Lines

Property line disagreements usually occur when adjoining Colorado property owners do not respect property boundaries. Sometimes this is due to a valid misunderstanding between neighbors. Not all property lines are easy to define and property records are not always accurate or easy to understand. Usually, disagreements arise because of fencing, trees, and other boundary line concerns. Though some Colorado property owners feel they can take matters into their own hands, doing so could cause more problems. Court intervention is typically the best way to identify and enforce property lines.

Ownership

Determining the rightful owner of a property in Colorado is not always easy. For instance ownership issues are common when an owner verbally transfers ownership without documentation. Or, when someone bequeaths their real estate to another without going through the proper process. There can also be other parties with ownership rights, such as certain lien holders. 

Liens

Liens can impact your ability to own property or land free and clear. It is possible to sell a property that has liens on it. However, some liens can diminish a property’s sale price. Also, in many cases, liens must be clear before you can secure a mortgage or financing.

Under Colorado law, a judgment lien can be attached to real estate or non-exempt personal property. A Colorado judgment that requires the payment of money becomes a line upon the judgment debtor’s real property. Furthermore, a lien in Colorado has a 6-year life but is subject to renewal.

What Should You Do If You Are in a Real Estate Dispute in Colorado?

If you have a real estate issue in which you feel your rights are being violated, or there is a specific issue that has you and another party in disagreement, it’s best to speak with an experienced Colorado real estate lawyer. Regardless of the issues you are facing, you can benefit from having legal guidance.

Learn About Real Estate Law

Colorado real estate law is quite complex. You need to learn as much as you can about how real estate law applies to your circumstances. Your lawyer will help you to understand what’s at stake and develop a plan of action that helps protect your real estate rights.

Work With an Experienced Real Estate Attorney in Colorado

Real estate disputes make up the majority of litigation cases. Still, not all issues require you to go to trial. You should work with Colorado lawyers that have the knowledge and experience to get you the resolution you seek. Depending on your disagreement, the courts may include financial compensation and injunctions to prevent retaliation or recurring issues.

Get the legal help you need now. We help Colorado landlords, renters, property and more resolve their real estate litigation. Additionally, we can even help you connect with an attorney across Colorado state lines.

Submit a request online or call us today at (866) 345-6784 to speak with an experienced lawyer in your area!

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.

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