Escrow & Title
In Colorado, a 'torrens title' system (where the government issues a certificate of title) differs from the recording system in that it:
AIs used in all Colorado counties
BWas an alternative system where state-issued certificates provided conclusive evidence of title (largely discontinued in Colorado)✓ Correct
CIs required for all commercial transactions
DEliminates the need for title insurance
Explanation
The Torrens title system, where the government issues a certificate providing conclusive title evidence, was available in some Colorado counties historically but has largely been replaced by the recording system. Most Colorado counties rely on the traditional recording system.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
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