In Colorado real estate transactions, title companies are well-versed in Certificates of Taxes Due (CTDs), delinquent liens, and redemption periods. But one area that often flies under the radar—and can create post-closing headaches—is property tax refunds and reimbursements.
Sometimes, sellers overpay property taxes due to:
These overpayments can result in refunds issued after closing, which raises key questions:
New builds and recently subdivided parcels often involve estimated tax bills. When actual assessments arrive, they may differ significantly. If the buyer ends up paying more than expected, they may seek reimbursement from the seller—or vice versa.
Title companies should:
Colorado’s special districts (e.g., metro, water, fire) sometimes issue partial refunds due to budget surpluses or mill levy reductions. These refunds may not be tied to the county treasurer’s records and can be missed entirely unless proactively tracked.
To avoid surprises:
Unaddressed refunds and reimbursements can lead to:
Don’t let overlooked refunds derail your closing. Contact COCRS today to ensure your tax data is complete and accurate. Our Colorado experts are ready to help you navigate the nuances of property tax and protect your transactions from post-closing surprises.