CO Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No State law requires a “a reasonable examination of the title” and “a determination of insurability of title in accordance with sound underwriting practices for title insurance companies”.
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches --
• Foreclosure Checklist --
• Special Searches Required (Code, HOA, Utilities)? --
• Survey Requirements
  • Purchase – not on platted residential
  • Refinance – not required

UPL

• Title searches, examinations, closings and policy production are, ordinarily, performed by non-attorneys. Non-attorney title professionals are permitted to prepare form deeds provided that they are instructed to do so by a licensed realtor or attorney.

Property Tax

DANGER AREAS

Mortgage/Transfer Tax

• Transfer Tax -- Yes.
  • State documentary fee, which applies to real estate transfers in the amount of 10 cents per $1,000 on consideration exceeding $500, and is collected from the buyer(s).
  • Real Estate Transfer Tax is assessed by certain local governments. Amounts Vary. Table as of 6-28-18
• Mortgage Tax -- None
• Withholding -- Yes. If the seller is a non-resident, or a corporation that does not maintain a permanent place of business in the state, the withholding tax will be the smaller of 2 percent of the sales price or the net proceeds from the sale

Spousal Joinder Requirements/Homestead

A non-title holding spouse is not required to join in the execution of a deed or a security instrument unless he/she recorded a declaration of homestead. If a declaration of homestead is recorded, the title commitment must contain a requirement calling for the execution of the deed, and/or security instrument, by the non-titled spouse.

Who May Serve As Trustee On Deed Of Trust

The customary instrument is the deed of trust. Ordinarily, the public trustee is listed as the trustee on the deed of trust.

A licensed title underwriter may release a deed of trust provided that it, or its agent, was responsible for the payoff of the subject loan. The underwriter release must be accompanied by an indemnification agreement in which the underwriter indemnifies the public trustee against any loss resulting from a deficient payoff.

Time Limitations

• US Judgment Liens 20 years, renewable for 20 years
• State Court Judgment Liens
• Federal Tax Liens 10 years (+30 days); can be refiled
• State Tax Liens
• Estate Tax Lien Federal 10 years
• State Inheritance Tax Liens
• Mechanics Liens
• Financing Statements 5 years
• Mortgages
• HOA Liens
• Condominium assessments -

Odd Stuff

• Usury coverage is available on loans where the interest charged does not exceed 45 percent. C.R.S. 5-12-103 (2012).