Colorado Title Insurance for Townhomes: Protecting Your Attached Home Ownership

Jerad Larkin
5 hours ago
3 min read

Introduction: Townhome Living Comes With Shared Walls - and Shared Responsibilities

Townhomes offer the best of both worlds - the privacy of a single-family home with the convenience of community amenities and shared maintenance. But townhome ownership in Colorado also introduces legal complexities similar to condominiums, including shared walls, HOAs, and common elements. That’s why Colorado title insurance for townhomes is a must - protecting your ownership rights, confirming legal boundaries, and preventing disputes tied to shared property.

Buying a townhome in Colorado? Jerad Larkin and Chicago Title Colorado explain how title insurance protects buyers from HOA liens, boundary disputes, and ownership risks.

Why Townhome Buyers Need Title Insurance

When you buy a townhome, you’re not just buying a building - you’re buying into a community governed by recorded documents like HOA declarations and covenants.

Here’s why title insurance matters:

Confirms Legal Ownership – Ensures the seller has the right to transfer ownership of the townhome.
Protects Against Hidden Liens – Covers unpaid HOA dues, property taxes, or contractor debts.
Verifies Accurate Boundaries – Confirms where your property begins and ends in relation to neighboring units.
Guards Against Recording Errors – Fixes mistakes in public records, plats, or HOA filings.
Covers Legal Defense Costs – Provides attorney coverage for covered ownership disputes.

Even a simple recording error in your HOA’s legal description can create long-term title complications - and title insurance is your safeguard.

Common Title Issues With Townhomes in Colorado

Unpaid HOA assessments or special assessments.
Overlapping property boundaries between adjoining units.
Easement errors involving shared driveways or access.
Developer or builder recording mistakes.
Outdated declarations or covenants.
Liens carried over from prior owners.

Townhomes may look straightforward, but the underlying title documents can be surprisingly complex.

What Title Insurance Covers for Townhome Buyers

A Colorado title insurance policy ensures your ownership is fully protected. It covers:

Ownership defects or chain-of-title errors.
Clerical or recording mistakes.
Fraud, forgery, or falsified documents.
Unreleased liens or taxes.
Access or easement disputes.
Legal defense for covered claims.

Your Owner’s Policy ensures that both your individual unit and your rights to shared common areas are secure.

The Title Process for Townhome Purchases

1. Title Search and Review

Chicago Title researches the HOA declaration, covenants, and recorded plats tied to the community.

2. Defect Resolution

Any identified issues - such as liens or recording errors - are resolved before closing.

3. Escrow and Closing

Funds and documents are securely handled through escrow to protect both buyer and seller.

4. Policy Issuance

An Owner’s Policy is issued to protect your title for the life of your ownership.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado are experts in attached housing transactions - from townhomes in Highlands Ranch to urban infill developments in Denver.

They provide:

In-depth HOA and covenant review.
Fast, reliable title searches.
Smooth escrow coordination for community sales.
Protection backed by Fidelity National Title Group.
Local expertise in complex Colorado property structures.

Whether your townhome is newly built or decades old, Chicago Title ensures your ownership is protected and your closing runs smoothly.

Real-Life Examples

A Denver buyer avoided a $7,500 HOA lien missed by the seller’s agent.
A Fort Collins buyer corrected a shared driveway easement error before closing.
A Boulder townhome owner used title insurance to resolve a boundary issue after refinancing.

How Much Does Title Insurance Cost for Townhomes?

In Colorado, title insurance rates are regulated by the Division of Insurance, ensuring consistent pricing across the state. Expect to pay between $700–$1,400, depending on property value and location. It’s a one-time cost that provides lifetime protection for your property ownership.

Conclusion

Buying a townhome in Colorado offers convenience, community, and value - but it also comes with shared ownership complexities. Colorado title insurance for townhomes gives you peace of mind that your investment is legally protected from past ownership disputes, unpaid liens, and boundary errors. With Jerad Larkin and Chicago Title Colorado, you can close confidently, knowing your home and your rights are secure.