The 5 Most Common Title Issues in Colorado (And How We Solve Them)
Even in Colorado's robust real estate market, title issues can derail transactions. Understanding these common problems, and how experienced Colorado title companies resolve them, helps real estate professionals set proper expectations and avoid last-minute surprises.
1. Outstanding Liens and Judgments
The Problem: Previous owners' unpaid debts create liens against the property. In Colorado, we frequently see tax liens, HOA liens, and mechanics' liens from unpaid contractors.
How Canyon Title Solves It: We contact lien holders directly to obtain payoff amounts and coordinate payments at closing. For disputed liens, we collaborate with attorneys to resolve issues prior to closing. Our Colorado title insurance protects against unknown liens that surface later.
Prevention Tip: Order title work early in the transaction to identify and resolve lien issues in a timely manner.
2. Boundary and Survey Disputes
The Problem: Property boundaries aren't where everyone thinks they are. This is especially common in Colorado's mountain areas, where natural landmarks may have shifted, historical surveys were imprecise, or roads are located where they aren’t supposed to be.
How We Solve It: We order updated surveys when boundary questions arise and work with surveyors to establish accurate property lines when deemed necessary. If encroachments exist, we help negotiate solutions between neighbors or provide title insurance coverage for known issues.
Colorado Specifics: Mountain properties often have unique easement issues for access roads and utilities that require specialized resolution.
3. Name and Ownership Discrepancies
The Problem: The seller's name does not match exactly between the deed and their identification, or previous ownership transfers, weren't properly documented.
How Canyon Title Handles It: We prepare corrective instruments and collaborate with previous owners to resolve ownership discrepancies. For name variations resulting from marriage, divorce, or legal name changes, we obtain proper documentation to ensure a clear title transfer.
Common Colorado Issues: Frequent moves and name changes in our transient population create more opportunities for documentation gaps.
4. Missing or Improperly Executed Documents
The Problem: Previous deeds weren't properly notarized, witnessed, or recorded. Sometimes, entire documents are missing from the public record.
Our Solution Process: We track down original documents and work with previous parties to obtain proper signatures and notarization. When documents can't be corrected, we provide title insurance coverage to protect against potential future claims.
Why This Happens: Rural Colorado counties sometimes have gaps in historical record-keeping, and DIY property transfers occasionally skip important steps.
5. Easement and Access Rights Issues
The Problem: Properties lack proper access to public roads, or utility easements weren't properly granted or documented.
Canyon Title's Approach: We research historical access patterns and work with neighboring property owners to establish proper easements. For landlocked properties, we coordinate with attorneys to establish legal access rights.
Colorado Challenges: Many mountain and rural properties depend on private roads or shared access agreements that weren't properly documented decades ago.
How Title Insurance Protects Your Clients
Even with thorough title searches in Colorado, some issues only surface years later. Owner's title insurance policies protect buyers against financial loss resulting from covered title defects, while lenders' policies protect the interests of mortgage companies.
What's Covered: Unknown liens, forgery in the ownership chain, errors in public records, and many other title defects.
What's Not Covered: Issues disclosed in the title commitment, environmental problems, and building code violations.
Working with Canyon Title for Problem-Free Closings
Our experienced team handles complex title issues on a daily basis, ensuring that Colorado real estate transactions remain on track and proceed smoothly. We communicate proactively with all parties when problems arise and work diligently to resolve issues before closing.
For real estate agents and lenders in Colorado, partnering with a title company experienced in addressing the state's unique challenges means fewer delayed closings and more satisfied clients. Contact Canyon Title to discuss how our comprehensive settlement services can support your business.