C.R.S. Section 38-35-125
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.
(c)(Deleted by amendment, L. 2004, p. 1206, § 83, effective August 4, 2004.)(2) No person or entity that provides closing and settlement services for a real estate transaction shall disburse funds as a part of such services until those funds have been received and are either: Available for immediate withdrawal as a matter of right from the financial institution in which the funds have been deposited; or available for immediate withdrawal as a consequence of an agreement of a financial institution in which the funds are to be deposited or a financial institution upon which the funds are to be drawn. Any such agreement shall be made with or for the benefit of the person or entity providing closing and settlement services for a real estate transaction. Notwithstanding the provisions of this subsection (2), the person or entity providing closing and settlement services may advance funds, not to exceed five hundred dollars, on behalf of interested parties for the transaction to pay incidental fees for such items as tax certificates and recording costs or to cover minor changes in the closing adjustments.

(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.

Source: 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).

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

§ 38-35-125’s source at colorado​.gov