Closing and settlement services
- disbursement of funds
(1)As used in this section, unless the context otherwise requires:
(a)“Available for immediate withdrawal as a matter of right” includes funds transferred by any of the following means:
(I)Any wire transfer;
(II)Any certified check, cashier’s check, teller’s check, or any other instrument as defined by federal regulation CC, 12 CFR 229.10 (c).
(a.5)“Closing and settlement services” means those services which benefit the parties to the sale, lease, encumbrance, mortgage, or creation of a secured interest in and to real property and the receipt and disbursement of money in connection with any sale, lease, encumbrance, mortgage, or deed of trust.
(b)“Financial institution” means an entity that is authorized under the laws of this state, another state, or the United States to make loans and receive deposits and has its deposits insured by the federal deposit insurance corporation or its successor or the national credit union share insurance fund.
(3)The requirements of subsection (2) of this section may be waived by the seller in the real estate transaction if:
(a)It is specified as part of written closing instructions in advance of closing that the seller waives the requirements set forth in subsection (2) of this section and that the person or entity conducting the closing, unless such person or entity is the seller, is not to handle the receipt and disbursement of funds as part of the closing; and
(b)Any holder of a lien encumbering the property up to the time of closing agrees, in writing, to such waiver and further agrees, in writing, to release such lien immediately upon receipt of a check from the closing drawn in the amount of the outstanding indebtedness secured by such lien. Such an agreement shall obligate the lienholder to release such lien regardless of whether the payoff check received has been or will be honored.
(4)Any seller who so requests as part of written closing instructions in advance of closing shall be entitled to receive the proceeds of closing in a cashier’s check or in funds electronically transferred to an account specified by the seller.
(5)Failure to comply with the provisions of this section shall be deemed a deceptive trade practice, as provided in section 6-1-105 (1)(v), C.R.S., and the attorney general or a district attorney may apply to the appropriate district court of this state for an order to effect the purposes of this section.
Section 38-35-125 — Closing and settlement services - disbursement of funds,
https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-38.pdf (accessed Oct. 20, 2023).