SB 14-009 Summary

• Real Estate Commission must promulgate rules by January 1, 2016 requiring disclosure in residential property contracts that surface estate may be separately owned from underlying mineral estate.

• Disclosure must inform buyers that third parties may own or lease oil, gas, or mineral interests and may enter the surface to access minerals under surface use agreements.

• Disclosure must describe potential oil and gas activities including surveying, drilling, well completion, storage facilities, producing wells, and gas gathering operations on or adjacent to the property.

• Disclosure encourages buyers to seek additional information from the Colorado Oil and Gas Conservation Commission regarding drilling permits and oil and gas activity.

• Disclosure requirement does not create additional duty to investigate or disclose for sellers, licensed real estate agents, or title insurance companies beyond existing obligations.