Colorado Rent-to-Own Lease Agreement

Requirement to Record: Colorado law does not require recordation of an option to purchase. However, should parties wish to record the option, it must be done so at the recorder’s office for the county where the property is located.^[1]

Expiration: Unless it is renewed by recording a notice of lis pendens, constructive notice provided by a recorded option to purchase expires one year after the time determined in the option.^[2][3]

Maximum Term: Colorado does not explicitly define a maximum term for options to purchase.

No Duration: If no duration is defined in the option, it is likely to default to a “reasonable time” under common law. Lack of a defined duration does not mean that the duration is perpetual.^[4]

Signing Requirements: Must be signed by the lessor and/or seller.^[5]

1. 5 or Fewer Rental Homes (conditional) – If the landlord owns 5 or fewer single-family rental homes, they can issue a 5-day notice to quit versus a 10-day period if this is mentioned in the lease.^[6]

2. Copy of Lease – A copy of the lease agreement should be given to the tenant no later than the seventh day after it’s been executed by all parties.^[7]

3. Bed Bug Disclosure (conditional) – It is prohibited for a landlord to offer for rent a dwelling with bed bugs. Upon request by the tenant, the landlord must disclose any presence of bed bugs within the last eight months.^[8]

4. Landlord’s Name and Address – A statement in the lease indicating the landlord’s name and address must be mentioned.^[9]

5. Lead-Based Paint Disclosure & EPA Pamphlet – Under federal law, required for any housing structure built prior to 1978.^[10]

6. Radon Disclosure & Radon Brochure – Requires landlords to disclose any knowledge of radon concentrations at the property and issue a warning statement on the dangers of radon to prospective tenants.^[11] In addition, landlords must provide the most recent copy of the “Radon in Real Estate & Rental Transactions” brochure.^[12][13]

7. Warranty of Habitability – Every residential lease agreement entered into on or after January 1, 2025, must contain the following statement regarding the tenant’s right to safe and healthy housing under Colorado’s warranty of habitability:

“EVERY TENANT IS ENTITLED TO SAFE AND HEALTHY HOUSING UNDER COLORADO’S WARRANTY OF HABITABILITY AND LANDLORD IS PROHIBITED BY LAW FROM RETALIATING AGAINST A TENANT IN ANY MANNER FOR REPORTING UNSAFE CONDITIONS IN THE TENANT’S RESIDENTIAL PREMISES, REQUESTING REPAIRS, OR SEEKING TO ENJOY THE TENANT’S RIGHT TO SAFE AND HEALTHY HOUSING.“

Additionally, every rental agreement must include a bolded statement in English and Spanish that states (i) an address where the tenant can mail or personally deliver written notice of an uninhabitable condition and (ii) an e-mail address or accessible online tenant portal or platform where the tenant can deliver written notice of an uninhabitable condition.^[14]

1. Common Interest Community (conditional) – If the property is located in a common interest community, a disclosure statement must be included in the seller’s property disclosure form.^[15]

2. Green Disclosure (conditional)- For properties that contain or are equipped with energy-related features and technologies.^[16]

3. Lead-Based Paint Disclosure (conditional) – In accordance with the U.S. Consumer Product Safety Commission, the seller must provide a lead-based paint disclosure form to a potential buyer.^[17]

4. Lead-Based Paint Pamphlet (conditional) – Gives general information about lead-based paint for properties built before 1978.^[18]

5. Methamphetamines (required)- It is required that it be stated in the purchase agreement that the buyer is entitled to conduct testing on the property to see if it was ever used as a methamphetamine laboratory.^[19]

6. Potable Water (required) – The seller must disclose the source of their water in the property disclosure.^[20]

7. Radon Brochure (required) – Sellers must provide sellers with a copy of the Dept. of Health & Environment’s Brochure on Radon and Real Estate.^[21]

8. Radon Disclosure (required)– Requires sellers to disclose any knowledge of radon concentrations at the property and issue a warning statement on the dangers of radon to prospective sellers. In addition, sellers must provide sellers with a copy of the Dept. of Health & Environment’s Brochure on Radon and Real Estate.^[22]

9. Seller’s Property Disclosure (required) – An all-encompassing disclosure form that covers each individual state-mandated disclosure requirement including taxing districts, common interest community, meth lab, potable water, transportation projects, and oil and gas activity.^[23]

10. Special Taxing District (required) – A disclosure statement about special taxing districts must be included in the seller’s disclosure form.^[24]

11. Transportation Projects (conditional)- If there are any transportation projects that are underway nearby, they must be mentioned in the property disclosure.^[25]