3.4 Colorado Closing Procedures
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 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
Who typically conducts real estate closings in Colorado?
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Test Your Knowledge
How are property taxes typically paid in Colorado?
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