What Title Companies Should Know and Communicate to Buyers

In Colorado’s dynamic real estate market, homeowners’ associations (HOAs) play a central role in shaping the ownership experience. For title companies, understanding and facilitating compliance with Colorado’s HOA disclosure requirements is essential—not only to protect buyers but also to ensure smooth closings and reduce post-sale disputes.

This article outlines the key HOA transparency obligations under Colorado law, recent legislative updates, and how title professionals can support clients through the disclosure process.

The Legal Framework: CCIOA and HOA Disclosure Duties

The Colorado Common Interest Ownership Act (CCIOA) governs most HOAs in the state and mandates a robust set of disclosures for buyers. Title companies often serve as the conduit between sellers, HOAs, and buyers, ensuring that all required documentation is delivered in a timely and complete manner.

Required HOA Disclosures Include:

• Declaration (CC&Rs)
• Bylaws and Rules & Regulations
• Operating budget and financials
• Reserve studies and annual disclosures
• Board meeting minutes
• Pending litigation or special assessments

Under C.R.S. 38-35.7-102, sellers must provide these documents to buyers before closing. Buyers then have a right to review and, if necessary, terminate the contract within the statutory review period.

Legislative Update: HB 25-1043 and Its Impact on Title Work

Effective October 1, 2025, House Bill 25-1043 introduces new protections for homeowners and additional transparency requirements for HOAs. Title companies should be aware of the following implications:

Key Provisions Relevant to Title Professionals:

• Verification of HOA Compliance: Before enforcement actions (including foreclosure), HOAs must demonstrate compliance with their own governing documents and state law. This may affect title searches and lien enforcement timelines.
• Enhanced Notice Requirements: HOAs must provide detailed notices to homeowners regarding delinquencies and foreclosure risks. Title companies should ensure these notices are part of the public record or HOA disclosures when applicable.
• Annual Reporting to DORA: HOAs must report foreclosure activity, judgments, and payment plans to the Department of Regulatory Agencies (DORA). This data may become relevant in due diligence and risk assessment.
• Right to Stay Foreclosure Sales: Homeowners can delay foreclosure sales by listing the property at fair market value. Title companies handling REO or distressed sales should be prepared for potential delays or legal motions.

Fee Transparency and Collection Practices

Colorado law also regulates how HOAs assess and collect fees:

• Late fees are capped at $25 or 5% of the overdue amount.
• Interest on unpaid assessments is capped at 8% annually.
• Payment plans must be offered before foreclosure proceedings begin.

Title companies should verify whether any outstanding assessments, fines, or liens exist and ensure they are disclosed and resolved prior to closing.

Best Practices for Title Companies

To support compliance and client satisfaction, title professionals should:

1. Request HOA Documents Early: Encourage sellers and agents to obtain and deliver HOA documents as soon as a contract is signed.
2. Verify Outstanding Balances: Confirm with the HOA whether any unpaid dues, fines, or special assessments exist.
3. Educate Buyers: Provide a summary of what HOA documents include and why they matter.
4. Monitor Legislative Changes: Stay current with updates from DORA and the Colorado General Assembly to ensure your processes reflect the latest legal requirements.

Final Thoughts

As the regulatory landscape around HOAs evolves, title companies are uniquely positioned to ensure transparency and protect buyers from unexpected obligations. By staying informed and proactive, title professionals can help facilitate smoother transactions and build trust with clients navigating Colorado’s HOA-governed communities.

Need help navigating HOA disclosures or implementing best practices for your team?
Reach out—we’re here to support your success in every transaction.