An owner's policy provides:
- Protection from financial loss due to covered claims that may be asserted against the title to your home up to the face amount of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy up to the face amount of the policy.
Title insurance protection – some common hidden risks protected under a title policy
- False impersonations of the true property owner by your seller or other persons formerly in the title
- Forged deeds, releases and other documents
- Deeds by persons of unsound mind
- Deeds by minors
- Invalid documents executed under expired power of attorney
- Invalid deeds delivered after the death of the grantor
- Deeds by supposedly single but actually married persons
- Liens for unpaid estate inheritance and gift taxes against prior owners of your home
- Unrecorded easements – rights of way
- Undisclosed heirs of former owners of your home or the land on which it is situated.
When Are Taxes Due?
Taxes are due in arrears in Colorado. Taxes can be paid by two methods: 1) One payment on April 30, or 2) Two payments – half by February 28, and half by June 15.
Taxes are prorated at closing based on the previous year's taxes and are usually a final settlement, unless otherwise provided for in the Real Estate Contract.
What transfer Tax is Imposed?
Some areas of our state have a transfer tax (imposing a tax upon the transfer of interest in real property). This tax is based on a percentage of the purchase price.
- Town of Vail – 1%
- Town of Avon – 2% (See Application for Exemption)
- Town of Minturn – 1%
- Town of Gypsum – 1%
- Beaver Creek – 2.5%
- Bachelor Gulch – 2%
- Brett Ranch – 1%
- Gypsum – 1%
- Cordillera – 1%
- Red Cliff – 1%
- Arrowhead at Vail – 1%
What is "Power of Attorney?"
A "power of attorney" is a written instrument by which a person (the "principal") appoints another agent (the "attorney in fact") and confers upon the agent the power to perform certain specified acts on behalf of the principal.
A power of attorney creates an agency relationship, with the giver of the power remaining the legal owner of any property involved.
Please feel free to call our office if you are using power of attorney on your transaction. We will provide you with the form.
- Must be approved by Stewart Title Guaranty Company
- Must be within six months
- Specified to transaction
What is Required for Private-party Payoffs?
When there is a private party lender payoff, we will always want to look at the original promissory note, deed of trust and release prior to closing. Also, the private-party lender must supply the payoff figures to our escrow department.
How is Title Held or Going to be Held?
Remember, if you are selling your property and you hold the real estate in an entity name, there may be additional requirements that must be complied with before closing. If you are acquiring real estate and wish to hold title in an entity name, there may be additional requirements that must be complied with before closing. Please contact our title department for any questions.
Stewart Title offers reissue rates for qualified transactions. Contact your local Stewart Title representative for more information.
ALL FUNDS AT CLOSING MUST BE IN THE FORM OF A WIRE TRANSFER. COLORADO IS A GOOD FUNDS STATE.