Colorado Title Insurance Requirements: What Buyers and Sellers Need to Know

Jerad Larkin
55 minutes ago
2 min read

Introduction: Clearing Up the Confusion

If you’re buying or selling property in Colorado, you’ll likely encounter title insurance during the process. Many people ask: “Is title insurance required in Colorado, and what are the rules?”

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

In this blog, we’ll explain Colorado title insurance requirements, who needs it, when it’s required, and why Jerad Larkin and Chicago Title Colorado are trusted across the state for guidance and protection.

Is Title Insurance Required in Colorado?

For Buyers: Title insurance isn’t legally required for cash buyers - but it’s strongly recommended.
For Lenders: If you’re financing a home, your lender will require a lender’s title insurance policy before closing.

While buyers can technically opt out, doing so exposes them to major financial and legal risks if ownership issues ever arise.

Why Title Insurance Is Required by Lenders

Lenders require title insurance to protect their lien on the property.It ensures that:

The mortgage is in first lien position.
There are no undisclosed ownership claims.
The property can be sold or refinanced later without title complications.

Without this protection, lenders wouldn’t have confidence in the security of their loan.

Common Title Requirements Before Closing

When title insurance is issued in Colorado, the title commitment includes “requirements” - items that must be completed before the policy can be finalized. These might include:

Paying off existing mortgages or liens.
Resolving unpaid property taxes or HOA fees.
Providing proof of legal ownership.
Submitting signed and notarized documents for county recording.

These steps ensure that ownership is clear and transferable at closing.

Who Pays for Title Insurance in Colorado?

Traditionally:

Seller pays for the Owner’s Policy (protecting the buyer).
Buyer pays for the Lender’s Policy (protecting the lender).

However, payment terms can always be negotiated between parties in the purchase contract.

Why Buyers Should Always Get Title Insurance

Even if not legally required, an Owner’s Policy protects buyers from:

Fraudulent ownership claims.
Clerical errors in public records.
Unpaid liens or property taxes.
Boundary disputes or easement issues.

This one-time fee provides lifelong coverage for as long as the buyer owns the property.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado help buyers, sellers, and lenders navigate title insurance requirements with clarity and confidence. Their team provides:

Accurate title commitments with clear requirements.
Thorough searches to uncover potential risks.
Secure escrow management for funds and documents.
Local expertise across Denver, Colorado Springs, and the Front Range.
National financial backing for dependable coverage.

Real-Life Examples

A Denver buyer avoided a delayed closing after Chicago Title identified and cleared a lien early.
A Colorado Springs lender praised the team’s speed in providing required documentation.
A Boulder agent said Chicago Title made complex title requirements “simple to understand.”

Conclusion

So, what are Colorado title insurance requirements?

Lenders require coverage to protect their investment, and buyers should always purchase their own policy for full protection. With Jerad Larkin and Chicago Title Colorado, every title requirement is handled efficiently, ensuring a smooth and secure closing.