Buying or selling a home in Colorado usually goes smoothly — but the reason it goes smoothly is that a title company is working behind the scenes to find and fix problems before you ever sit down at the closing table. A title search looks backward through the ownership history of a property to make sure the seller can actually convey clean ownership, and that no one else has a claim that survives the sale.
Here are the five issues we run into most often on El Paso County transactions, what they mean for you, and how they get resolved before closing.
1. Unreleased liens from a paid-off loan or contractor
The question buyers ask: "The seller told me that loan was paid off years ago — why is it still showing up?"
When a mortgage is paid off, the lender is supposed to record a release. Sometimes they never do, or the paperwork was filed incorrectly, so the lien still sits on the public record. The same thing happens with mechanic's liens — a contractor who did work and wasn't fully paid can file a claim against the property, and that claim attaches to the home, not the person who hired them. A title search surfaces these so they can be cleared or paid from proceeds at closing rather than becoming your problem after you own the home.
2. Errors in public records
The question buyers ask: "It's a government record — how could it be wrong?"
Clerical and filing errors are more common than people expect: a misspelled name, a wrong legal description, a deed recorded against the wrong parcel, or an incorrect marital status on a prior transfer. Any of these can cloud the chain of title. Because these errors sit in the official record, they don't fix themselves — a title examiner catches the discrepancy and works with the county and the parties to correct it before the deed transfers.
3. Undisclosed or missing heirs
The question buyers ask: "The seller inherited the house — isn't that straightforward?"
When an owner dies, the property passes to heirs, and if the estate wasn't properly settled, an heir can surface later claiming an ownership interest — even years after a sale. A missing will, an unknown child, or a family member who never signed off can all create a claim. This is one of the clearest cases for an owner's title policy: some claims genuinely cannot be discovered in the public record, and the policy protects you if one appears after closing.
4. Boundary and survey disputes
The question buyers ask: "The fence has been there for 20 years — isn't that the property line?"
The fence, the driveway, and the actual recorded boundary don't always agree. A neighbor's shed encroaching a few feet over the line, an easement that isn't obvious on the ground, or conflicting surveys from different decades can all create disputes over what you're actually buying. These issues show up in the title commitment and, when needed, an updated survey resolves exactly where the lines run before you close.
5. Forgery, fraud, and identity issues
The question buyers ask: "How would anyone even fake a property document?"
A forged signature on a past deed, a document signed under a false identity, or a fraudulent release of a prior mortgage can all break the chain of title. Real estate fraud — including seller-impersonation schemes on vacant land and rental properties — has been a growing concern in Colorado. Verifying identity and scrutinizing the documents in the chain is a core part of what a title company does, and title insurance backs you up if fraud in the property's history surfaces later.
How often do these come up?
Most transactions have at least one item that needs attention on the title commitment — the vast majority are minor and resolved well before closing. Here's a rough sense of what we see:
| Title issue | How common | Typically resolved before closing? |
|---|---|---|
| Unreleased liens | Common | Yes — paid or released from proceeds |
| Public record errors | Common | Yes — corrected with the county |
| Missing / undisclosed heirs | Occasional | Usually — some claims covered by policy |
| Boundary / survey disputes | Occasional | Usually — resolved with updated survey |
| Forgery / fraud | Rare | Yes — and backed by owner's policy |
The takeaway
A clean closing isn't luck — it's the result of a title search doing its job. Two things protect you: the search itself, which finds and clears problems up front, and an owner's title policy, which protects your equity against the handful of claims that can't be found in the record. The lender's policy that comes with your loan only protects the bank's interest; the owner's policy is what protects you, and in Colorado it's a one-time premium that covers you for as long as you own the home.
Have a question about a specific property or a title issue you're running into? Reach out to Ben Gosz at Chicago Title of Colorado — happy to walk through it.
Frequently asked questions
Do I really need an owner's title policy if the lender already requires one?
The lender's policy only protects the lender's interest in the loan, not your ownership or equity. If a covered title claim arises, the lender's policy pays the bank — not you. An owner's policy is the only one that protects the buyer, which is why it's strongly recommended even though it's optional.
Who pays for title insurance in Colorado?
It's negotiable and spelled out in the purchase contract. By common practice in Colorado the seller often pays for the owner's policy protecting the buyer, while the buyer pays for the lender's policy — but this varies by transaction and is a term you can negotiate.
How long does an owner's title policy last?
An owner's title policy is a one-time premium paid at closing and it protects you for as long as you own the property — there are no renewal payments. Coverage relates to issues in the property's history up to your purchase date.
What's the difference between a title search and title insurance?
A title search is the up-front investigation of the property's ownership history to find and clear problems before closing. Title insurance is the protection that covers you afterward if a covered problem that couldn't be found in the record surfaces later. You want both — one prevents problems, the other protects against the rare ones that slip through.
Can a title problem show up after I've already closed?
Yes. Some issues — like an undisclosed heir, a forged document in the chain of title, or an error that wasn't discoverable in the public record — can surface after closing. That's exactly what an owner's title policy is designed to protect against.