Colorado Revises its Deed Requirements

Colorado Governor Jared Polis recently signed into law a bill, House Bill 1098 (HB 1098), which, among other things, amends the requirements for certain deeds prepared by licensed title insurance entities.

Specifically, pursuant to HB 1098, any deed prepared by a title insurance entity containing a covenant of warranty must: (1) include a limitation on the warranty of title; and (2) use the phrase “subject to statutory exceptions” and no other terms or descriptions, unless the preparing title insurance entity is otherwise instructed in writing by both the grantor or the grantee.  Moreover, the bill states that a licensed title insurance entity cannot disclaim, limit, or seek indemnification against liability for any negligence by the entity when preparing a deed that contains the phrase “subject to statutory exceptions.”  Further, HB 1098 provides new deed forms for the conveyance of real property.

The changes made by HB 1098 went into effect on March 7, 2019.