Yes, there may be legal recourse available. Colorado law requires that sellers disclose to buyers any latent defects actually known by the seller, and this disclosure must be in writing. WCM Partners, Inc. v. Chaney, 2019 Colo. Dist. LEXIS 938. If the seller was aware of the non-operational status of the fireplace and failed to disclose this, it could potentially be considered a latent defect that was not disclosed as required. Further, showing the fireplace as fully operational in the real estate listing could be used as evidence suggesting that the seller misrepresented the condition of the property.

You can learn more about issues when the seller fails to disclose by reading our article, "Can I Sue Colorado Seller for Failure to Disclose Defects?" If you would like to speak to one of our real estate attorneys, please contact us here.