Colorado Title Insurance for Modular Homes: Securing Ownership in Modern Construction

Jerad Larkin
1 day ago
3 min read

Introduction: Modular Homes, Traditional Risks

Modular homes are gaining popularity across Colorado - offering faster build times, lower costs, and customizable designs. Whether you’re setting one up in Fort Collins, Colorado Springs, or the Denver metro area, modular housing combines convenience and innovation. However, modular homes introduce unique title considerations that differ from traditional stick-built homes. That’s why Colorado title insurance for modular homes is essential to protect ownership, confirm proper classification, and prevent costly surprises.

Buying a modular home in Colorado? Jerad Larkin and Chicago Title Colorado explain how title insurance protects modular homeowners from liens, ownership errors, and property classification issues.

Why Modular Home Buyers Need Title Insurance

A modular home is built off-site and assembled on your property, which can create confusion about whether it’s considered real property (land and structure) or personal property (movable unit).

Here’s why title insurance matters:

Confirms Real Property Status – Ensures the home is properly affixed to the land and legally considered real estate.
Protects Against Liens – Covers unpaid construction or installation debts.
Verifies Legal Ownership – Confirms that both the home and land are properly transferred to you.
Guards Against Recording Errors – Corrects mistakes in legal descriptions or property classifications.
Provides Lifetime Coverage – Protects your ownership for as long as you own the property.

Even if the home is brand-new, title insurance ensures there are no leftover ownership claims or construction-related encumbrances.

Common Title Issues With Modular Homes

The home was never “converted to real property” with the county assessor.
Unpaid contractor or manufacturer liens.
Errors in the HUD data plate or certificate of origin.
Overlapping property boundaries or missing surveys.
Title disputes due to land ownership transfers.
Clerical mistakes in county filings or mortgage documents.

Title insurance ensures your home’s ownership and land records are legally aligned - a must for future refinancing or resale.

What Title Insurance Covers for Modular Homes

A Colorado title insurance policy protects buyers from:

Ownership or recording defects.
Clerical or survey mistakes.
Hidden liens, unpaid debts, or back taxes.
Fraud or forgery in prior ownership transfers.
Legal defense for covered title claims.

Once insured, your modular home’s title remains protected even if you later refinance or transfer the property to a trust.

The Title Process for Modular Home Purchases

1. Title Search and Verification

Chicago Title reviews the property’s legal description, affixation documents, and any liens tied to land or home construction.

2. Defect Resolution

Any inconsistencies or outstanding liens are cleared before closing.

3. Escrow and Closing

Funds are securely managed through escrow, ensuring both buyer and builder are protected.

4. Policy Issuance

An Owner’s Policy is issued at closing, covering your property for life.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado are experts in handling modular and manufactured housing transactions throughout the state.

They provide:

Verification of affixation documentation.
Detailed title searches for both home and land ownership.
Coordination with builders, lenders, and counties.
Trusted protection through Fidelity National Title Group.
Local expertise in Colorado modular home closings.

Whether you’re buying land-and-home together or converting a modular unit to real property, Chicago Title ensures the process is handled correctly.

Real-Life Examples

A Colorado Springs buyer avoided a $7,800 contractor lien tied to a modular home’s foundation work.
A Fort Collins buyer’s title insurance identified a missing real property conversion filing before closing.
A Denver buyer corrected a recording error that omitted the modular structure from the property’s legal description.

How Much Does Title Insurance Cost?

Colorado title insurance premiums are regulated by the Division of Insurance, so rates are fair and consistent statewide. Expect to pay between $700–$1,800, depending on property value and complexity. It’s a one-time cost that provides lifetime protection for both your home and land.

Conclusion

Modular homes represent a modern, efficient way to own property - but their legal complexity makes title insurance even more important. Colorado title insurance for modular homes protects your ownership rights, ensures your property is classified correctly, and prevents future legal headaches. With Jerad Larkin and Chicago Title Colorado, you can close confidently, knowing your modular home and land are fully protected.