In a Colorado real estate transaction, due diligence documents can provide helpful background on a home—but they have limits. Sellers are only required to provide documents they have in their possession. Because of that, inspections remain one of your most important protections as a buyer.

What to Pay Attention To

• Known unpermitted work involving structural, electrical, or plumbing changes

• Repeated insurance claims, especially water or foundation-related claims

• Open or unresolved city or county violations

• Engineering or structural reports showing unresolved issues

• HOA issues tied to unapproved improvements

What Is Usually Not a Big Deal

• A finished basement without permits when the seller has contractor receipts or documentation (this is very

common—many sellers do not pull permits for basement finishes)

• Missing permits from many years ago

• Expired or missing warranties

• Outdated inspection reports

• Utility bills that fluctuate month to month

• Minor repairs completed without receipts

Bottom Line: Due diligence documents provide context—not guarantees. Because sellers can only provide what they have, home inspections evaluate the current condition of the home and are your strongest safeguard when buying.

Bottom Line: Due diligence documents provide context—not guarantees. Because sellers can only provide what they have, home inspections evaluate the current condition of the home and are your strongest safeguard when buying.