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CTDs and Tax Payment Plans

Picture of Paul Soucek

What Title Companies Need to Know in Colorado

💡 Why This Matters

In Colorado, property owners facing financial hardship can enter into tax payment plans with county treasurers. While these plans help owners avoid tax liens or foreclosure, they can create confusion during real estate closings—especially when the Certificate of Taxes Due (CTD) doesn’t clearly reflect the payment status.

For title companies, understanding how to identify and handle these situations is key to protecting clients and ensuring smooth closings.

🔍 What Are Tax Payment Plans?

Tax payment plans allow property owners to pay delinquent taxes in installments over time. These agreements are typically:

  • Negotiated directly with the county treasurer.
  • Not always recorded as liens.
  • Sometimes not reflected on the CTD unless specifically requested.

⚠️ The Risk for Title Companies

If a CTD shows no delinquency, but a payment plan is in place:

  • The remaining balance may still be a lien.
  • The buyer could inherit the obligation unknowingly.
  • The closing could be delayed or require last-minute escrow adjustments.

🧾 How to Spot a Payment Plan

Use these strategies to uncover hidden tax obligations:

  • Ask the seller directly if they’re on a payment plan.
  • Contact the county treasurer to confirm the full tax status.
  • Use COCRS’s CTD services to identify inconsistencies.

📑 What to Include in the Title Commitment

If a payment plan is discovered:

  • Disclose the plan and any remaining balance.
  • Escrow funds to cover unpaid installments.
  • Include language noting the treasurer’s confirmation of the plan.

🛠️ How COCRS Can Help

COCRS goes beyond the basic CTD by:

  • Using treasurer data for payment plans and deferrals.
  • Contacting counties directly to verify tax obligations—so you don’t have to.

✅ Final Thoughts: Don’t Let Payment Plans Derail Your Deal

Tax payment plans are becoming more common—but they’re not always visible. By working with COCRS, title companies can uncover hidden liabilities, protect buyers, and close with confidence.

📞 Call to Action

Need help verifying a CTD or uncovering hidden tax obligations?
Contact COCRS today—we’ll handle the research so you can focus on closing.