New Radon Law - Landlords and Tenants Take Note!
You may or may not be aware, but Colorado has a new law that went into effect last month regarding radon (CO Senate Bill 23-206). Radon is a naturally occurring radioactive gas that is derived from decaying uranium in soils. The toxic radon gas produced then exits the soils and can enter homes. Prolonged exposure to radon gas has been linked to lung cancer, which prompted the State of Colorado to establish the new law to better protect homeowners and renters from its harmful effects. Click here to learn more about radon gas.
Read below to learn how the new radon law will impact the different real estate parties.
This law applies to real estate contracts or leases signed on or after August 8, 2023. These new requirements do not apply for contracts and leases signed before this date.
If you are selling your home, you will need to disclose any knowledge of radon concentrations to a buyer. This includes any radon test results you have or any information about radon mitigation systems installed in your home. Your contract will also need to include a warning statement about radon and recommendation for testing.
There is now a section included in the seller's property disclosure that you fill out when selling your home. This disclosure along with providing any radon documentation for your home will fulfill your disclosure requirements under the new law.
If you are purchasing a home, it is your responsibility to read and acknowledge the provided seller's property disclosure as well as read the EPA Guide on Radon.
It is highly recommended by the Department of Public Health and Environment that you have a professional radon test conducted before purchasing a home. This can be completed with your home inspection by a qualified inspection company.
Landlord disclosure requirements are similar to sellers. You will need to disclose any knowledge of radon concentrations to a potential tenant. This includes any radon test results you have or any information about radon mitigation systems installed in your home. You also need to provide them with the EPA Guide to Radon.
Your lease will also need to contain a warning statement about radon and the recommendation for testing. If you use a platform such as Zillow or have a property management company create your leases, they should automatically include the required disclosures.
If you are creating your own lease, you will need to be sure to include the appropriate disclosures and statements.
If you are going to be signing a lease, it is your responsibility to read, acknowledge and sign all documents provided by the landlord.
It is highly recommended by the Department of Public Health and Environment that you have a professional conduct a radon test before leasing a home. This can be completed by a professional radon testing company for a fee.
Radon disclosure has been a regular part of real estate sales transactions for many years and the additional disclosure does not change the process for buyers & sellers too much. The big change in my opinion is the added disclosure in the rental business. It's a little more paperwork, but will provide renter's with important information about radon. If you manage your own rental property and have questions about radon disclosure and the required forms, feel free to reach out to me if you need assistance.
As always, I appreciate your business and your referrals. I hope you are enjoying this amazing fall weather. All the best.