Escrow & Title

In Colorado, a title company performs a title search primarily to:

ADetermine the property's market value
BIdentify liens, encumbrances, and defects in the chain of title before insuring title✓ Correct
CVerify the property's compliance with zoning laws
DCalculate the property taxes due at closing

Explanation

A title search involves examining public records to trace the history of ownership and identify any outstanding liens, mortgages, judgments, easements, or other encumbrances that could affect the buyer's title. The results are used to issue a title insurance commitment.

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