Certificates of Taxes Due and Delinquent Property Tax Risks

What Title Companies Need to Watch for in Colorado

Introduction
Certificates of Taxes Due (CTDs) are a standard part of Colorado real estate closings—but not all CTDs tell the full story. For title companies, understanding the nuances of delinquent property taxes, redemption periods, and treasurer errors is essential to protecting clients and ensuring clean title.

🔍 1. The Hidden Risks of Delinquent Taxes

While CTDs are designed to show the current tax status, they may not reflect:

• Recently sold tax liens that haven’t been recorded yet
• Pending treasurer corrections due to misapplied payments
• Unpaid special assessments that fall outside the standard CTD

These gaps can result in post-closing surprises, especially if a tax lien buyer initiates foreclosure.

🕰️ 2. Redemption Periods and Title Implications

In Colorado, delinquent taxes can lead to a tax lien sale, after which the owner has a three-year redemption period. During this time:

• The lien remains active and can accrue interest
• Redemption must be paid in full to clear the lien
• Title companies must disclose this risk to buyers and lenders

Failing to identify a lien in redemption can jeopardize the transaction and expose parties to future claims.

🧾 3. CTDs and Treasurer Errors: What to Double-Check

County treasurers occasionally issue CTDs with:

• Incorrect parcel numbers or legal descriptions
• Missing special district charges
• Misapplied exemptions or deferrals

Title professionals should always:

• Cross-reference CTDs with assessor records
• Confirm parcel boundaries and taxing entities
• Contact the treasurer directly if anything looks off

🏘️ 4. Investor-Owned Properties and Tax Payment Gaps

Investor-owned properties—especially those in foreclosure or probate—may have:

• Skipped tax payments
• Unclaimed exemptions
• Unrecorded liens from prior owners

These issues often surface late in the closing process. COCRS can help identify and resolve them early.

✅ Conclusion: CTDs Are Just the Start

A clean CTD doesn’t always mean a clean title. Title companies must dig deeper to uncover delinquent tax risks, redemption timelines, and treasurer inconsistencies. That’s where COCRS comes in.

👉 Need help verifying tax status or resolving CTD issues? Contact COCRS today and let our Colorado experts support your next closing.