Bulletin: CO2024001

Dear Associates:

The following are summaries of bills passed during the 2024 Colorado legislative session, which are of interest to the title insurance industry. 

House Bill 24-1007 – Residential Occupancy Limits: This bill prohibits a Local Government from limiting the number of people who may live together in a single dwelling based on familial relationships. Local Governments may still limit the number of occupants based on health and safety standards, fire codes, or other public health and environmental standards. The bill is effective as of July 1, 2024. 

House Bill 24-1056 – Issuance of Treasurer’s Deeds: This bill modifies the statutes governing the issuance of Treasurer's Deeds to bring Colorado into compliance with the U.S. Supreme Court’s holding in Tyler v. Hennepin County. The bill establishes a process by which the holder of a certificate of purchase for a property tax lien may apply for a public auction. Any overbid amounts generated in the public auction are paid out in order of priority to junior lienholders with any remaining proceeds paid to the former owner. The bill is effective as of July 1, 2024. Note: This bill does not change or modify Stewart Title Guaranty Company’s underwriting guidelines with respect to insuring property acquired via a Treasurer’s Deed.

House Bill 24-1104 – Protections for Firefighter Personal Information: This bill adds Firefighters to the list of parties whose personal information cannot be published on the Internet. As with the other protected categories, Firefighters may now request that certain information be redacted from the publicly available documents on a County Clerk and Recorder website. The title company exemption from prior years is still in place and will allow title companies to obtain access to unredacted Clerk and Recorder records. This bill is effective as of August 6, 2024. 

House Bill 24-1152 – Accessory Dwelling Units: This bill requires certain jurisdictions to allow Accessory Dwelling Units (ADUs) as an accessory use for all single-unit detached dwellings and sets out criteria for a jurisdiction to become an “Accessory Dwelling Unit supportive jurisdiction.” The bill also prohibits future Planned Unit Developments and Covenants, Conditions, and Restrictions from restricting the construction of ADUs. The bill is effective as of May 13, 2024. 

House Bill 24-1175 – Local Government Rights to Property for Affordable Housing: This bill grants Local Governments a Right of First Refusal (ROFR) and a Right of First Offer (ROFO) with respect to certain classes of affordable housing in Colorado. 

The ROFR will apply to mixed-use or multi-family residential properties consisting of five or more units that are subject to a recorded restrictive use covenant or similar recorded agreement which indicates that the property has received governmental affordable housing financial assistance. The ROFO will apply to mixed-use or multi-family residential properties of between 15 and 100 units that are 30 years old or older.  

To give notice of a seller’s compliance with the provisions of either the ROFR or the ROFO a Local Government is required to record a Certificate of Compliance containing the name of the seller, the legal description of the property and a statement that the seller has complied with the provisions of the ROFR or ROFO. Colorado Title Insurance Entities and their Insureds are entitled to rely on the statements in a recorded Certificate of Compliance. If a seller does not comply with the provisions of the ROFR or ROFO the remedies available to the Local Government are limited to the assessment of fines or penalties against the seller only. The Local Government may not take any action which affects title to the subject property or any interest therein previously conveyed. Note: Moving forward, you should require the recording of a Certificate of Compliance prior to insuring any transaction involving a property subject to the ROFR or ROFO.

This bill is effective as of August 6, 2024, but it does not apply to any properties that were listed for sale or are under contract to sell prior to the effective date. 

House Bill 24-1269 – Modification of Recording Fees: This bill eliminates Colorado’s per page recording fee and replaces it with a flat recording fee of $40.00 per document. The bill also eliminates the recording fee for death certificates and mandates the redaction of any Social Security Number shown in a document. To give County Clerk and Recorders time to prepare, this bill will not be effective until July 1, 2025.

House Bill 24-1443 – Public Trustee Fees: This bill increases the fees charged for almost all services performed by the Public Trustee’s Office in each County. In particular, this bill increases the fee for a Release of Deed of Trust from $15.00 to $30.00. The bill is effective as of July 1, 2024.

Senate Bill 24-145 – Uniform Unlawful Restrictions in Land Records Act: This bill creates a process for removal of unlawful covenants based on race, color, religion, national origin, sex, familial status, disability, and other legally protected classes. The bill allows amendments removing the unlawful covenants to be executed and recorded by either an individual owner or an association of owners. The bill is effective as of August 6, 2024.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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