Garfield & Hecht

VII. Closing.

At closing, you should receive the following documents:

A. Deed Conveying the Property.

The deed should contain the proper legal description for the property, any water rights and all easements benefiting the property. The deed should also provide warranties from the seller regarding title to the property. The new deed should be recorded in the land records office in the county where the property is located. Sometimes it is better to have a separate deed for the water rights. If the purchase includes shares of stock in a ditch or reservoir company, be sure to consult with an attorney regarding the necessary transfer documents.

B. Bill of Sale and Assignments.

The Bill of Sale conveys any personal property, such as refrigerators, washers, and dryers. You should also be assigned all warranties, well permits and other contract rights of the seller relating to the personal property included in the transaction.

C. Title Insurance Policy.

The title insurance policy should contain the proper legal description for the property and only those exceptions to title that have been approved. It should also include any requested endorsements to the title insurance policy for matters such as mineral reservations and mechanics lien protection.

D. Other Closing Documents.

The following documents should also be delivered at closing:

(i) Settlement Statement, itemizing all monetary items, including closing costs;

(ii) Real Property Transfer Declaration. This form is used by the property tax assessor for valuing the property;

(iii) Certificate of Non-Foreign Status of Seller. This form requires the seller to provide you with an affidavit declaring that the seller is not a foreign person or entity. If no such affidavit is provided, you are required to withhold from the closing proceeds 10% of the purchase price;

(iv) Colorado Department of Revenue DR 1083 requiring a 2% withholding from the purchase price for out-of-state sellers; and

(v) Affidavit of Real Estate Transfer Tax, if applicable. This form may be used to accompany the Real Estate Transfer Taxes paid to the city's finance department just prior to recording the deed.