How to Take Title in Colorado

When you buy a home or investment property in Colorado, "taking title" simply means choosing how your name or business name is legally recorded on the deed.

Think of it as choosing the legal rules for your ownership. It dictates three massive things: who has control today, who can sign for a loan, and what happens to the property if an owner passes away.

For a standard real estate closing in Colorado, buyers choose from three foundational options. Here is the breakdown of how they work, why they matter, and what could go wrong.

1. Sole Ownership (Tenant in Severalty)

• What it means: One single legal person owns 100% of the property. The word "severalty" sounds like "several," but it actually means your ownership interest is severed (cut off) from everyone else. This applies to a single individual, or a single entity like an LLC, a Corporation, or a Trust.

• Why it matters: Nobody else can withhold their signature and delay you if you want to sell, refinance, or lease the property. You have absolute authority.

• What could go wrong: If you pass away without a written plan (a will, estate plan, LLC or Trust succession plan), the property can get locked up in court as people argue who has the rights to the property.

2. Tenancy in Common

• What it means: Two or more parties own the property together. Ownership shares do not have to be equal: one can own 70% because they put up the down payment, while the other owns 30%.

• Why it matters: This is Colorado’s default treatment. If a deed lists multiple buyers but does not explicitly state how they want to hold title, Colorado treats it as Tenancy in Common.

• What could go wrong: There is no right of survivorship. If your co-owner passes away, their percentage does not go to you. It goes to their heirs or whoever is named in their will. You could find yourself owning a property with your late partner's estranged dead relative's son's wife.

3. Joint Tenancy

• What it means: Two or more people own the property together. Entities can't be owners; and equal shares is assumed, but you can specify otherwise. This is the go-to option for married couples and close families who want seamless inheritance. In Colorado, the deed must explicitly use specific phrases like "as joint tenants" or "with right of survivorship" to activate this.

• Why it matters: The Right of Survivorship. If one owner passes away, their share automatically transfers to the surviving owner or owners. You don't have to deal with courts and debates on who inherits the other portion.

• What could go wrong: Your co-owner's creditors can reach their interest, not yours. A judgment against them attaches to their undivided share only. But the practical effect lands on you. The lien clouds title, so you cannot sell or refinance without dealing with it.

Quick Reference Summary

Did You Know? Two Colorado Title "Gotchas"

• Colorado does NOT recognize "Tenancy by the Entirety": Some states offer a special, extra-protected title option strictly for married couples. Colorado does not. Married couples here must actively choose between Joint Tenancy or Tenancy in Common.

• Colorado is NOT a Community Property State: Unlike Texas or California, Colorado does not automatically view all property acquired during a marriage as 50/50 community property on a deed. How you choose to vest your title at closing matters immensely.

Closing in Colorado? Book a call and we will make sure the vesting language on your deed says what you think it says. Or send your contract any time to [email protected].

This article is general information, not legal advice. Title insurance availability, underwriting standards and state law vary, and outcomes depend on the specific facts of a transaction. Consult a qualified attorney in the relevant state before acting. Creative Title is a licensed title and settlement services provider in Colorado and Tennessee.

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