The CTD Timing Trap: How Tax Cycle Transitions Can Complicate Closings

Certificates of Taxes Due (CTDs) are a vital part of Colorado real estate transactions, but their accuracy is tied to a specific moment in time. When closings occur near the end or beginning of a tax cycle, title companies face a unique risk: CTDs that are technically correct—but practically outdated.

Why Timing Matters More Than You Think

Colorado counties issue CTDs based on the current tax status at the time of request. But if a closing is delayed, rescheduled, or spans a new billing period, the CTD may no longer reflect:

• Newly assessed taxes
• Updated mill levies
• Special district charges for the new year
• Payment obligations that have shifted due to calendar changes

This can result in:

• Under- or over-proration of taxes
• Missed assessments
• Post-closing disputes between buyers and sellers

Common Scenarios That Create Timing Risks

1. Year-End Closings
   Closings in late December may use a CTD that doesn’t reflect January’s new assessments or mill levy changes.

2. Early-Year Transactions
   January and February closings often rely on prior-year CTDs while new bills are being calculated—leading to mismatches.

3. Delayed Closings
   If a closing is pushed back by even a few weeks, the CTD may no longer be valid, especially if a new tax cycle begins.

4. Special District Updates
   Some districts issue charges on non-standard cycles, which may not align with county billing timelines.

Best Practices for Title Companies

To avoid the CTD timing trap:

• Confirm the tax cycle status with the county treasurer
• Request updated CTDs if the closing date shifts
• Escrow for potential tax changes when closing near cycle transitions
• Use COCRS to verify the most current tax data across all taxing entities

✅ Call to Action

Don’t let timing derail your transaction. Contact COCRS today to ensure your CTDs reflect the most current tax data—no matter when you close. We help title companies stay ahead of Colorado’s tax cycles with confidence and clarity.