Navigating Property Taxes in Complex Colorado Transactions

For Colorado title companies, Certificates of Taxes Due (CTDs) are a routine part of closing—but what happens when the property isn’t so routine? As real estate transactions grow more complex, so do the tax implications. This post explores often-overlooked CTD challenges and how title professionals can stay ahead of the curve.

🔍 1. Multi-Parcel Properties: One Deal, Many Tax Bills

It’s not uncommon for a single transaction to involve multiple parcels—especially in rural areas, commercial developments, or legacy family holdings. Each parcel may have its own CTD, and failing to account for all of them can lead to post-closing surprises.

Tips for Title Teams:

• Cross-reference legal descriptions with assessor parcel maps.
• Request CTDs for each parcel individually, even if they share an address.
• Watch for split payments—some owners pay taxes on only part of the property.

🧩 2. Recently Subdivided or Replatted Land: Timing is Everything

When a property has been recently subdivided or replatted, the Treasurer's records may lag behind. This can result in:

• CTDs that reflect the pre-subdivision parent parcel, not the new legal descriptions.
• Unapportioned tax bills, where taxes are due on the entire original parcel.

What You Can Do:

• Contact the county treasurer and assessor to confirm how taxes are being handled.
• Escrow for taxes on all affected parcels until the new assessments are finalized.
• Include disclosure language in the title commitment about potential reassessments.

🏛️ 3. Overlapping Taxing Authorities: Hidden Liens and Special Districts

Colorado’s patchwork of special districts—metro districts, water and sanitation, fire protection, and more—can create overlapping tax obligations that aren’t always obvious on a standard CTD.

Best Practices:

• Use GIS tax maps to identify all taxing entities.
• Check for non-ad valorem assessments (e.g., improvement district fees) that may not appear on the CTD.
• Coordinate with the county treasurer to verify whether all assessments are included.

🧾 4. CTDs and Deferred Taxes: Not Always Delinquent, But Still a Lien

As covered in recent legislative updates, deferred taxes—especially under senior or hardship programs—may not show as delinquent but still create a lien on the property.

Action Items:

• Ask sellers directly about any tax deferral participation.
• Review treasurer’s notes or supplemental documents for deferral flags.
• Include deferral payoff instructions in your closing checklist.

✅ Final Thoughts: Precision Matters

In a world of increasingly nuanced property tax rules, title companies must go beyond the basics. A CTD is only as good as the context in which it’s interpreted. By training your team to spot red flags and ask the right questions, you’ll protect your clients—and your reputation.