In Colorado real estate, the Certificate of Taxes Due (CTD) is often seen as the final word on a property’s tax status. But for title companies, relying solely on the CTD can be risky. Beneath the surface, there are critical tax-related issues that can derail closings, create liability, and frustrate clients—especially when they’re not clearly disclosed.
Here are some under-discussed challenges and how COCRS can help you stay ahead of them.
Colorado’s expanded deferral programs allow certain homeowners to postpone property taxes. While helpful for taxpayers, these deferrals accrue as liens—and they’re not always visible on the CTD. If missed, they can surface post-closing and threaten title integrity.
Tip for Title Companies: Always verify whether the property qualifies for deferral programs, especially under the new 4% growth cap rule. COCRS can help identify these hidden liens before they become a problem.
Senior and veteran exemptions are valuable, but they don’t automatically transfer when a homeowner moves. In 2025 and 2026, Colorado allows temporary reinstatement of exemptions at a new residence—but only under specific conditions.
Why It Matters: If an exemption is incorrectly assumed to apply, escrow calculations may be off, leading to underfunded accounts and future disputes.
Properties in foreclosure, probate, or held by investors often have missed payments, unclaimed exemptions, or unrecorded liens. These issues frequently emerge late in the closing process, catching title companies off guard.
Best Practice: Don’t assume a clean CTD means a clean title.
CTDs reflect taxes due at the time of issuance—but closings that span tax cycles or occur late in the year may face unexpected adjustments. With 2025 taxes paid in 2026 and temporary discounts expiring, escrow accounts may need recalibration.
Title professionals: If you’re navigating complex closings, don’t go it alone. COCRS specializes in resolving CTD discrepancies, uncovering hidden liens, and ensuring your tax data is complete and accurate.
👉 Contact COCRS today to safeguard your transactions and streamline your closings.