The Hidden Challenges for Title Companies During Colorado’s Tax Lien Season

As Colorado counties prepare for their annual tax lien sales, title companies face a unique set of challenges when trying to obtain accurate and timely Certificates of Taxes Due (CTDs). These certificates are essential for ensuring clean title and smooth closings—but during this time of year, they can be anything but straightforward.

Why CTDs Matter

A CTD is a formal document issued by a county treasurer that certifies the amount of property taxes due on a parcel. It’s a critical part of any real estate transaction in Colorado, serving as proof that taxes are either paid or accounted for.

However, during the tax lien sale season, typically in the fall, counties may temporarily close or limit access to their systems to prepare for auctions. This can delay CTD issuance and introduce risks for title companies.

Key Risks Title Companies Should Watch For

1. Delayed CTD Processing

County treasurers often pause CTD issuance or slow processing times while preparing for lien sales. This can delay closings or force title companies to escrow funds without full tax clarity.

2. Incomplete or Inaccurate CTDs

CTDs may not reflect:

• Recently sold tax liens not yet recorded
• Pending treasurer corrections
• Special assessments from new taxing districts

These gaps can lead to post-closing surprises, such as unexpected liens or redemption obligations.

3. Tax Payment Plans and Deferrals

Some property owners enter into tax payment plans or defer taxes due to hardship. These arrangements may not appear on the CTD unless specifically requested, leaving title companies unaware of lingering obligations.

4. New or Unrecorded Taxing Districts

Colorado’s rapid growth has led to the formation of new special taxing districts. These may impose assessments not yet reflected in county systems, creating hidden liabilities for buyers. 

How COCRS Helps Title Companies Stay Ahead

Colorado County Records System (COCRS) provides a continually updated list of county closures and tax sale schedules at:

👉 County Closures

Best Practices for Title Professionals

• Double-check CTDs against assessor records and parcel maps
• Ask sellers about payment plans or pending assessments
• Escrow funds for any uncertain or delayed tax obligations
• Use COCRS tools to verify tax status and avoid surprises

Conclusion:
During Colorado’s tax lien season, CTDs can be a moving target. Title companies must go beyond the surface to uncover hidden risks and ensure clean closings. With COCRS as a partner, you can navigate this complex landscape with confidence.