Colorado Title Insurance Requirements: What Buyers and Sellers Must Know

Jerad Larkin
1 hour ago
2 min read

Introduction: Clearing Up the Rules

If you’re buying or selling a home in Colorado, you may be wondering: “Is title insurance required, and what are the rules around it?”

Learn Colorado’s title insurance requirements. Jerad Larkin and Chicago Title Colorado explain what’s required for buyers, sellers, and lenders statewide.

The short answer: while title insurance isn’t always legally required, in practice it’s an essential part of nearly every Colorado real estate transaction. Lenders almost always require it, and buyers benefit from having their own coverage. In this blog, we’ll break down the title insurance requirements in Colorado, who pays, and why Jerad Larkin and Chicago Title Colorado are trusted to guide buyers, sellers, and agents through the process.

Is Title Insurance Required in Colorado?

For Buyers: An owner’s policy is technically optional, but strongly recommended to protect ownership rights.
For Lenders: A lender’s policy is always required when financing is involved, to protect the bank’s interest in the property.
For Sellers: Many purchase contracts in Colorado require the seller to provide an owner’s policy for the buyer.

Why Title Insurance is Practically Mandatory

Even if not required by law, title insurance is essential because it protects against:

Unpaid taxes or liens.
Fraudulent transfers or forged signatures.
Errors in public records.
Unknown heirs claiming ownership.
Boundary or survey disputes.

Without coverage, buyers and lenders would face enormous risk.

Who Pays for Title Insurance in Colorado?

Payment responsibilities are negotiated in the purchase contract, but common practices include:

Seller pays for Owner’s Policy.
Buyer pays for Lender’s Policy.

These terms can vary depending on the county or local market norms.

What Are the Requirements for Issuing Title Insurance?

Before issuing a policy, a Colorado title company must:

Conduct a title search to review ownership history.
Provide a title commitment, listing requirements and exceptions.
Clear any outstanding liens, taxes, or claims before closing.

Once conditions are met, the title company issues the final policy at closing.

Title Insurance Costs in Colorado

Since rates are regulated statewide, costs are consistent:

Owner’s Policy: $1,000 - $2,000 depending on purchase price.
Lender’s Policy: Several hundred dollars.
One-Time Fee: Paid at closing, not ongoing.

Why Chicago Title Colorado is a Trusted Provider

Jerad Larkin and Chicago Title Colorado are leaders in meeting Colorado’s title insurance requirements. They provide:

Accurate title searches to uncover hidden risks.
Clear title commitments so buyers and sellers know what to expect.
Secure escrow services to handle funds.
Agent support with O&E reports, property books, and farming tools.
Local expertise with national strength, ensuring compliance and reliability.

Real-Life Examples

A Denver buyer avoided a $15,000 lien because Chicago Title flagged it before issuing the policy.
A Colorado Springs seller closed on time after clearing a decades-old mortgage found during the title search.
A Front Range agent used Chicago Title’s breakdown of insurance requirements to educate clients and win referrals.

Conclusion

So, what are the Colorado title insurance requirements?

While not legally required for all buyers, lender’s policies are mandatory, and owner’s policies are highly recommended. With Jerad Larkin and Chicago Title Colorado, buyers, sellers, and agents can move forward with confidence, knowing requirements are met and risks are covered.