It's one of the most misunderstood parts of a Colorado closing — and knowing the answer can save your clients money and headaches.
Short answer
In Colorado, there's no law that hands the choice to one side. The buyer and seller negotiate who selects the title company right in the purchase contract. In practice the buyer often picks, but it's genuinely up for negotiation — and the party who selects isn't automatically the party who pays.
Ask ten people who chooses the title company and you'll get ten different answers — the buyer, the seller, the lender, "whoever the agent always uses." The truth in Colorado is more flexible than most people realize, and that flexibility is exactly why it pays to understand how it works before a contract is signed.
What the Colorado Contract Actually Says
The Colorado Real Estate Commission's approved Contract to Buy and Sell Real Estate settles this directly. Under sections 8.1.1 and 8.1.2, the buyer and seller negotiate both who selects the title company and who pays for the owner's title insurance policy. Nothing is automatic — it's a checkbox-and-blanks decision made when the offer is written. That means the answer to "who picks?" is really "whoever the two parties agree on in the contract."
So Who Usually Picks?
While it's negotiable, patterns hold.
| Party | How Often They Pick | Why |
|---|---|---|
| Buyer | Most common | The buyer is purchasing the policy protection and submitting the offer, so they frequently name the title company. |
| Seller | Fairly common | A seller may have a preferred company or offer to cover the owner's policy in exchange for directing the closing. |
| Lender | Loan side only | When the buyer is financing, the lender requires a lender's title policy but generally can't force the closing to a specific company under RESPA. |
| Agent recommendation | Very common in practice | Buyers and sellers often defer to a title company their agent knows and trusts — which is how local "go-to" relationships form. |
Selecting vs. Paying — They're Not the Same
A key point that trips people up: the party who selects the title company is not automatically the party who pays for the policy. In many Colorado transactions the seller pays for the owner's policy while the buyer pays for the lender's policy — but who selects is a separate negotiation. It's common to trade one against the other. For example, if a seller insists on their preferred title company, a buyer might reasonably ask the seller to cover both the owner's and lender's premiums in return.
Why It Matters for Your Clients
Title and closing fees vary between companies, and service quality varies even more. A responsive, experienced local title team keeps deadlines on track and catches problems early — while a poor choice can stall a closing.
Negotiable
Named in the contract
Buyer
Most common selector
Separate
Selecting ≠ paying
FAQs: Choosing a Title Company in Colorado
Does the buyer or seller pick the title company in Colorado?
Either can. It's negotiated in the Colorado Contract to Buy and Sell (sections 8.1.1 & 8.1.2). The buyer picks most often, but the seller can select it if both parties agree.
Is who selects the title company the same as who pays for it?
No. Selection and payment are negotiated separately. It's common for the seller to pay for the owner's policy and the buyer to pay for the lender's policy, regardless of who chose the company.
Can a lender require me to use a specific title company?
Generally no. When a buyer is financing, the lender requires a lender's title policy, but federal RESPA rules prevent a lender from forcing the closing to a particular title company as a condition of the loan.
Can the buyer and seller use different title companies?
In a typical Colorado residential closing, one title company handles the transaction for both parties. If there's disagreement over which company to use, it's negotiated in the contract before it's signed.
Should I just use the title company my agent recommends?
An agent's recommendation is often a great starting point — they work with local companies they trust. Just know you have the right to choose, and it's fine to ask for a fee estimate and compare.
Helping a Colorado Springs client weigh their options?
Let's make sure the title company on your next deal is set up for a smooth close.
ben.gosz@ctt.com • 719.602.9431
This article is for general educational purposes only and does not constitute legal or title advice. Contract terms and title practices vary by transaction. Refer to the current Colorado Real Estate Commission Contract to Buy and Sell Real Estate and consult your title company or attorney for specifics.