C.R.S. Section 38-35-124
Requirements upon satisfaction of indebtedness

(1)

Except as provided in articles 22 and 23 of this title or as otherwise provided in this section, when all indebtedness, whether absolute or contingent, secured by a lien on real property has been satisfied, unless the debtor requests in writing that the lien not be released, the creditor or holder of the indebtedness shall, within ninety days after the satisfaction of the indebtedness and receipt from the debtor of the reasonable costs of procuring and recording the release documents, record with the appropriate clerk and recorder the documents necessary to release or satisfy the lien of record or, in the case of an indebtedness secured by a deed of trust to a public trustee, file with the public trustee the documents required for a release as prescribed by section 38-39-102.

(2)

If the debtor requests in writing that the lien be released, or fails to request in writing that the lien not be released, then the debtor’s request or the actual release cancels any obligations on the part of the creditor or holder to make any further loan or advance that would be secured by the lien. If the person satisfying the indebtedness requests in writing delivery to him or her of the canceled instruments of indebtedness at the time of satisfaction, the creditor or holder is relieved of any further obligation or liability under this section after the delivery has been completed.

(3)

Upon satisfaction of the indebtedness, the creditor or holder shall return to the person satisfying the indebtedness all papers and personal property of the debtor that have been held by the creditor or holder in connection with the indebtedness. A creditor or holder who fails to comply with this section is liable to the owner of the real property encumbered by such indebtedness and to any other person liable on such indebtedness for all actual economic loss incurred enforcing the rights provided under this section, including reasonable attorney fees and costs.

(4)

Intentionally left blank —Ed.

(a)

For indebtedness secured by a lien on real property where the ability of a debtor to draw upon a line of credit continues notwithstanding that all amounts outstanding under the line of credit have been paid in full, any lien on real property securing that line of credit continues, and no lien release under this section is required, until the line of credit expires and all indebtedness, whether absolute or contingent, has been satisfied unless, before expiration of the line of credit, all outstanding indebtedness is satisfied and the debtor relinquishes in writing all right to make any further draw upon the line of credit.

(b)

The debtor relinquishes all right to make a further draw by either requesting in writing that the line of credit be closed by the creditor or by written notification by the debtor or debtor’s designee that the real property is being conveyed upon payment of all indebtedness. Upon satisfaction of all indebtedness in connection with the conveyance of the real property and notice to the creditor or holder of the conveyance, the creditor or holder shall terminate the line of credit, record the release of the lien on real property, or in the case of a deed of trust, file with the public trustee the documents required for release, and return all papers and personal property as set forth in this section.

Source: Section 38-35-124 — Requirements upon satisfaction of indebtedness, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

38‑35‑101
Acknowledgments - form - prima facie evidence 38‑35‑102
When unacknowledged instruments prima facie evidence 38‑35‑103
Acknowledgment before notary 38‑35‑104
Acknowledged instruments as evidence 38‑35‑105
Foreign instruments, prima facie evidence 38‑35‑106
Deeds - acknowledgment, absent or defective - notice - deemed proper, when 38‑35‑106.5
Written instruments - information regarding property description 38‑35‑107
Recitals in deeds prima facie evidence - when 38‑35‑108
Reference to some other instrument affects only the parties thereto 38‑35‑109
Instrument may be recorded - validity of unrecorded instruments - liability for fraudulent documents 38‑35‑109.5
Recording of instruments conveying real property to public entities 38‑35‑110
Lis pendens as notice - issuance of certificate - expiration 38‑35‑111
Option to purchase - notice for one year only 38‑35‑112
Certificate of death when properly recorded may be admitted as evidence 38‑35‑113
Affidavits referring to death, intestacy, heirship, accepted as prima facie evidence 38‑35‑114
Actions - parties to be named 38‑35‑115
Execution by foreign representative of instrument regarding real estate prior to filing certified copies of order of appointment 38‑35‑116
Variances in names in instruments affecting the title to real property 38‑35‑117
Mortgages, not a conveyance - lien theory 38‑35‑118
Homestead, how conveyed - claimant insane 38‑35‑119
Release not a conveyance 38‑35‑120
Record of first and last parcels includes intervening parcels 38‑35‑121
Conveyance or reservation of a mineral interest - geothermal resources 38‑35‑122
Inclusion of street address and assessor information with legal description - effect - validity of recording - interests in property - legislative declaration 38‑35‑123
Liens - notice - current address 38‑35‑124
Requirements upon satisfaction of indebtedness 38‑35‑124.5
Effect of written payoff statement 38‑35‑125
Closing and settlement services - disbursement of funds 38‑35‑126
Contract for deed - escrow of tax moneys - written notice 38‑35‑127
Unenforceability of prospective residential transfer fee covenants - notice requirements for existing residential transfer fee covenants - written statement of transfer fee payable - affidavit - legislative declaration - definitions 38‑35‑201
Definitions 38‑35‑202
Recording or filing 38‑35‑203
Action to enforce 38‑35‑204
Order to show cause
Green check means up to date. Up to date

Current through Fall 2024

§ 38-35-124’s source at colorado​.gov