Colorado Title Insurance for Buyers and Sellers: What You Need to Know

Jerad Larkin
22 minutes ago
2 min read

Introduction: Protecting Both Sides of the Transaction

When buying or selling a home in Colorado, both parties need protection. Many ask: “How does title insurance work for buyers and sellers, and who pays for it?”

In this blog, we’ll break down the role of title insurance for buyers and sellers in Colorado, explain typical responsibilities, and show why Jerad Larkin and Chicago Title Colorado are trusted statewide.

Learn how Colorado title insurance protects both buyers and sellers. Jerad Larkin and Chicago Title Colorado explain policies, costs, and who pays.

What is Title Insurance?

Title insurance protects against financial losses caused by issues with a property’s ownership history. Unlike other insurance, it covers past problems - such as liens, fraud, or clerical errors - that may arise after the sale.

Title Insurance for Buyers

For buyers, title insurance provides:

Owner’s Policy – Protects their ownership rights for as long as they own the home.
Coverage includes: unpaid liens, errors in public records, fraudulent transfers, undisclosed heirs, and boundary disputes.
Peace of mind that they legally own their property without hidden risks.

Title Insurance for Sellers

For sellers, title insurance:

Ensures a smooth closing, since issues are flagged and resolved before transfer.
Provides clear communication of what liens or claims need to be cleared.
Helps sellers meet their contractual obligation to provide marketable title.

Who Pays for Title Insurance in Colorado?

In most Colorado contracts:

Sellers pay for the Owner’s Policy (for the buyer).
Buyers pay for the Lender’s Policy (required by mortgage companies).

This division is traditional but can be negotiated depending on the contract.

How Much Does It Cost?

Since rates are regulated statewide:

Owner’s Policy: $1,000–$2,000 depending on purchase price.
Lender’s Policy: A few hundred dollars.
One-Time Fee: Paid at closing, coverage lasts as long as the buyer owns the property.

Why Both Buyers and Sellers Benefit

Buyers gain peace of mind knowing their investment is secure.
Sellers avoid liability for ownership disputes after the sale.
Lenders are assured their liens are valid.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado are trusted partners because they offer:

Comprehensive title searches to uncover issues early.
Clear title commitments outlining requirements.
Secure escrow services for funds and documents.
Local expertise across Denver, Colorado Springs, and the Front Range.
Agent resources to help explain title insurance to clients.

Real-Life Examples

A Denver buyer avoided a $19,000 lien after Chicago Title’s policy covered it.
A Colorado Springs seller appreciated how title insurance cleared up an old mortgage release.
An agent in Boulder built trust with clients by showing how title insurance protects both sides.

Conclusion

So, what should buyers and sellers know about Colorado title insurance?

Buyers gain ownership protection, sellers ensure smooth transfers, and lenders secure their interests. With Jerad Larkin and Chicago Title Colorado, both sides can move forward confidently.