Split Parcels, Split Problems: CTD Challenges in Colorado Land Divisions

Certificates of Taxes Due (CTDs) are a cornerstone of Colorado real estate closings—but when a property has recently been subdivided or merged, title companies face a unique set of challenges. These “split parcel” scenarios can lead to inaccurate tax data, missed assessments, and costly post-closing surprises.

The Split Parcel Dilemma

When land is divided or combined, county systems often lag behind:

• CTDs may reflect outdated parcel boundaries
• Tax assessments may not match the legal description
• Special district charges may be misapplied or duplicated

This creates confusion for title professionals trying to verify tax status and ensure clean title.

Common Issues Title Companies Encounter

1. Delayed Updates in County Systems
   Counties may take weeks—or months—to update parcel records after a split or merger. During that time, CTDs may show incorrect tax amounts or reference nonexistent parcels.

2. Overlapping Assessments
   In some cases, both the old and new parcels are assessed simultaneously, leading to duplicate tax bills or overpayments.

3. Missing Special District Charges
   Special districts may not immediately recognize new parcel boundaries, resulting in missing or misapplied assessments.

4. Legal Description Mismatches
   CTDs may not align with the updated legal description, especially in new subdivisions or lot line adjustments.

Real-World Example: The Phantom Parcel

A title company in El Paso County closed on a newly subdivided lot. The CTD showed taxes for the original parcel, but the assessor had already created a new parcel ID. Months later, the buyer received a delinquency notice for unpaid taxes on the “phantom” parcel—one that wasn’t disclosed at closing.

Best Practices for Title Companies

To avoid split parcel pitfalls:

• Cross-check CTDs with assessor maps and legal descriptions
• Confirm parcel updates directly with the county
• Request supplemental tax data for newly created parcels
• Use COCRS to verify all taxing entities and assessments

✅ Call to Action

Split parcels shouldn’t split your closing timeline. Contact COCRS today to ensure your CTDs reflect the full picture. We help title companies navigate Colorado’s evolving parcel landscape with confidence and clarity.