Key Takeaways
- Colorado recognizes tenancy in common (default), joint tenancy, and tenancy by the entirety
- Colorado is an equitable distribution state for divorce, not community property
- Homestead exemption protects $75,000 in equity for homeowners ($105,000 if elderly/disabled)
- Colorado recognizes easements, restrictive covenants, and mineral rights
- Water rights in Colorado follow the prior appropriation doctrine ("first in time, first in right")
Colorado Property Rights and Ownership
Important: This content covers Colorado-specific property law. You should complete the National Real Estate Exam Prep first, as general property concepts are tested on the national portion.
Colorado follows common law principles for property ownership with some unique provisions.
Types of Property Ownership
Individual Ownership (Tenancy in Severalty)
One person holds title:
- Full control over property
- No survivorship rights
- Passes through estate
Co-Ownership Types
| Type | Key Features |
|---|---|
| Tenancy in Common | Default, unequal shares allowed, no survivorship |
| Joint Tenancy | Equal shares, right of survivorship |
| Tenancy by the Entirety | Married couples only, creditor protection |
Joint Tenancy in Colorado
To create joint tenancy in Colorado:
- Must expressly state "as joint tenants with right of survivorship"
- The "four unities" required (time, title, interest, possession)
- If one joint tenant sells, joint tenancy is severed
Default Rule: Without specific language, co-ownership is presumed to be tenancy in common.
Homestead Exemption
Colorado provides a homestead exemption protecting home equity from creditors:
| Feature | Amount |
|---|---|
| Standard exemption | $75,000 |
| Elderly (60+) or disabled | $105,000 |
| Applies to | Primary residence |
| Automatic | No filing required |
Limitations
- Does not protect against mortgage lenders
- Does not protect against property taxes
- Does not protect against mechanic's liens for work on the property
Colorado Water Rights
Colorado has a unique water rights system that is heavily tested:
Prior Appropriation Doctrine
"First in time, first in right" - The first person to put water to beneficial use has priority.
| Principle | Description |
|---|---|
| Prior Appropriation | First to use has senior rights |
| Beneficial Use | Water must be used beneficially |
| Not Attached to Land | Water rights can be sold separately |
| Senior vs. Junior Rights | Senior rights satisfied first |
Types of Water Rights
| Type | Description |
|---|---|
| Surface Water | Rivers, streams, lakes |
| Ground Water | Wells, underground aquifers |
| Tributary | Connected to natural streams |
| Non-Tributary | Not connected to surface streams |
Water Rights and Real Estate
- Water rights are separate from land ownership
- Must be researched separately in transactions
- Can significantly affect property value
- May require augmentation plans
Exam Tip: Colorado does NOT follow riparian rights (rights based on land adjacent to water). Prior appropriation means someone miles away may have senior water rights.
Mineral Rights
Severance
- Mineral rights can be severed from surface rights
- Previous owner may have reserved minerals
- Always research mineral ownership in transactions
Types of Mineral Rights
| Right | Description |
|---|---|
| Surface Rights | Right to use the land surface |
| Mineral Rights | Right to extract minerals |
| Oil and Gas Rights | Specific hydrocarbon rights |
| Leasing Rights | Right to lease to mining companies |
Easements
Types in Colorado
| Type | Description |
|---|---|
| Appurtenant | Benefits adjoining land |
| In Gross | Benefits person/entity |
| Prescriptive | Created by adverse use (18 years) |
| By Necessity | For landlocked parcels |
Prescriptive Easement
To establish in Colorado:
- 18 years of continuous use
- Open and notorious
- Adverse (without permission)
- Continuous
Adverse Possession
Colorado allows adverse possession after 18 years of:
- Actual possession
- Open and notorious
- Hostile (without permission)
- Exclusive
- Continuous
What doctrine does Colorado follow for water rights?
What is the standard Colorado homestead exemption amount?