Colorado mandates mold disclosure in residential property sales

In the heart of Colorado's bustling legislative session, a new bill has emerged that aims to address a pressing concern for homeowners and renters alike: mold in residential properties. Introduced on March 13, 2025, House Bill 1202 seeks to enhance transparency in real estate transactions by mandating that buyers are informed about potential mold issues in their prospective homes.

As the bill makes its way through the Colorado State Legislature, it has sparked significant discussions among lawmakers, real estate professionals, and public health advocates. At its core, House Bill 1202 requires that any contract of sale for residential real estate includes a bold-faced disclosure about the risks associated with mold exposure. This disclosure outlines the potential health effects, such as respiratory issues and allergic reactions, that can arise from mold spores, which thrive in damp environments.

The bill's proponents argue that it is a necessary step toward protecting public health and ensuring that buyers are fully informed before making one of the most significant investments of their lives. "Knowledge is power," said one supporter during a recent committee hearing. "Homebuyers deserve to know what they might be facing, especially when it comes to something as insidious as mold."

However, the bill has not been without its critics. Some real estate agents express concern that the mandated disclosures could deter potential buyers or complicate the sales process. They argue that the language may lead to unnecessary fear about mold, which is often present in homes but not always harmful. Additionally, there are worries about the potential for increased litigation, as the bill allows for private enforcement actions if violations occur.

The economic implications of House Bill 1202 are also under scrutiny. If passed, it could lead to increased costs for sellers who may need to conduct mold assessments or remediation before listing their properties. This could, in turn, affect housing prices and availability in a market already grappling with affordability issues.

As the debate continues, experts emphasize the importance of balancing consumer protection with the realities of the housing market. "While we want to ensure that buyers are informed, we also need to consider the broader impact on housing accessibility," noted a housing policy analyst.

As House Bill 1202 progresses through the legislative process, its fate remains uncertain. However, one thing is clear: the conversation around mold in residential properties is far from over, and the implications of this bill could resonate throughout Colorado's real estate landscape for years to come. Whether it will ultimately empower buyers or complicate the market is a question that will soon be answered as lawmakers weigh the bill's potential benefits against its challenges.