Key Takeaways
- Colorado closings can be conducted by title companies, attorneys, or escrow companies
- Title insurance commitment must be provided before closing
- The Closing Disclosure must be provided at least 3 business days before closing (federal TRID)
- Colorado uses warranty deeds and special warranty deeds for most transfers
- Property taxes in Colorado are paid in arrears and prorated at closing
Last updated: January 2026
Colorado Closing Procedures
Colorado has specific requirements for real estate closings that ensure proper title transfer and fund disbursement.
Who Conducts Closings
In Colorado, closings may be conducted by:
| Entity | Role |
|---|---|
| Title Company | Most common - provides title insurance and conducts closing |
| Attorney | May prepare documents and conduct closing |
| Escrow Company | Holds documents and funds |
| Broker | Can coordinate but typically doesn't conduct |
Title Company Role
Title companies typically:
- Search public records for title issues
- Issue title insurance commitment
- Prepare closing documents
- Conduct the closing
- Record the deed
- Disburse funds
Pre-Closing Requirements
Title Insurance Commitment
| Requirement | Detail |
|---|---|
| What It Is | Preliminary title report and commitment to insure |
| Timing | Before Title Deadline in contract |
| Review | Buyer should review for exceptions |
| Objections | Must be made by Title Objection Deadline |
Federal TRID Rules (Closing Disclosure)
| Document | Timing |
|---|---|
| Loan Estimate | Within 3 business days of application |
| Closing Disclosure | At least 3 business days before closing |
| Triggers New 3-Day Wait | APR change >0.125%, loan product change, prepayment penalty added |
Title Examination
The title company examines:
- Chain of title
- Recorded liens and encumbrances
- Judgments against seller
- Tax status
- Easements and restrictions
Types of Deeds in Colorado
General Warranty Deed
Provides the greatest protection to the buyer:
- Warrants title against all defects (past and present)
- Includes covenants of seisin, quiet enjoyment, right to convey
- Most common in Colorado residential transactions
Special Warranty Deed
Provides limited protection:
- Warrants only against defects during seller's ownership
- Common in commercial transactions
- Used in some REO sales
Quitclaim Deed
Provides no warranty:
- Transfers only the interest the grantor has (if any)
- No promises about title quality
- Used to clear title issues, transfers between family members
Bargain and Sale Deed
Limited use in Colorado:
- Implies seller has title but makes no warranties
- Less common than warranty deeds
Prorations at Closing
Property Taxes
Colorado property taxes are paid in arrears:
| Item | Calculation |
|---|---|
| Tax Year | Calendar year |
| Payment | Paid in arrears (following year) |
| Proration | Seller credits buyer for their portion |
| Method | Annual tax ÷ 365 × days seller owned |
HOA Dues
| Paid In | Proration |
|---|---|
| Advance | Buyer credits seller for prepaid portion |
| Arrears | Seller credits buyer for unpaid portion |
Other Prorations
| Item | Typical Direction |
|---|---|
| Rent (if rental property) | Seller credits buyer |
| Security deposits | Transferred to buyer |
| Utilities | Typically adjusted outside closing |
Recording
Where to Record
Deeds are recorded with the County Clerk and Recorder:
- In the county where property is located
- Creates public notice of ownership
- Establishes priority of interests
Recording Fees
| Item | Fee |
|---|---|
| Deed recording | Per page (varies by county) |
| Documentary fee | $0.01 per $100 of sales price |
| Other documents | Per page |
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Test Your Knowledge
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Test Your Knowledge
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