(1)(a)
Parties entering into a contract for deed to real property shall designate the public
trustee of the county where the real property is located to act as escrow agent for
moneys paid or to be paid by the purchaser to meet the property tax obligations on
the real property, including the seller's credit at closing for the current year's
property taxes and periodic property tax payments, which the contract shall
provide will be made monthly by the purchaser to the public trustee. The purchaser
shall be responsible for payment to the public trustee of the escrow fee pursuant to
section 38-37-104 (1)(d). Once each year during the month of April, upon notice
from the county treasurer, the public trustee shall, to the extent funds are on
deposit in the escrow account, transfer s
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(1) (a)
Parties entering into a contract for deed to real property shall designate the public
trustee of the county where the real property is located to act as escrow agent for
moneys paid or to be paid by the purchaser to meet the property tax obligations on
the real property, including the seller's credit at closing for the current year's
property taxes and periodic property tax payments, which the contract shall
provide will be made monthly by the purchaser to the public trustee. The purchaser
shall be responsible for payment to the public trustee of the escrow fee pursuant to
section 38-37-104 (1)(d). Once each year during the month of April, upon notice
from the county treasurer, the public trustee shall, to the extent funds are on
deposit in the escrow account, transfer sufficient funds from the escrow account to
the county treasurer for payment of property taxes on the real property for the
prior taxable year. The public trustee shall continue as escrow agent for tax
moneys collected on the real property until the deed to the real property is
delivered to the purchaser and recorded. At the time of delivery, the public trustee
shall release to the purchaser any moneys remaining in the escrow account and the
receipts for all property taxes paid on the property by the public trustee. If the
public trustee determines that the escrow is no longer necessary, the public trustee
may terminate the escrow account. The public trustee shall notify the county
treasurer of the termination and shall transfer any moneys held in escrow to the
county treasurer for payment of property taxes in accordance with section 39-10-104.5, C.R.S. Any amount so transferred by the public trustee shall be subtracted
from the amount of property tax payable on the real property at the time annual
property taxes for the current or subsequent taxable years are due. Upon
termination of the escrow account, any amount not accepted by the county
treasurer upon transfer shall be returned by the public trustee to the person
holding title to the real property that is the subject of the contract for deed to real
property.
(b) For the purposes of this section, a contract for deed to real property
means a contract for the sale of real property which provides that the purchaser
shall assume possession of the real property and the rights and responsibilities of
ownership of the real property but that the deed to such real property will not be
delivered to the purchaser for at least one hundred eighty days following the latest
execution date on the contract for deed to real property and not until the purchaser
has met certain conditions such as payment of the full contract price or a specified
portion thereof. Contract for deed to real property includes installment land
contracts.
(c) The public trustee shall deposit tax moneys received pursuant to the
provisions of paragraph (a) of this subsection (1) in an escrow account opened for
such purpose in one or more financial institutions which are in compliance with and
qualified and defined in article 10.5 of title 11, C.R.S. Moneys from more than one
transaction may be commingled in one account, to be accounted for separately. If
the escrow account opened by the public trustee under the provisions of this
subsection (1) bears interest, such interest shall be retained by the public trustee to
defray expenses arising from the administration of such escrow account.
(d) A public trustee may designate an alternate to act as escrow agent on
any contract for deed to real property in which the public trustee is designated as
escrow agent pursuant to the provisions of this section; except that such alternate
shall not be a party to the contract for deed to real property. Such designation shall
be made by sending written notification of such designation to the parties to such
contract and to the county treasurer. Such notice shall include the name and legal
address of the designated alternate and the date such designated alternate shall
assume the duties of escrow agent. Such designated alternate shall have all of the
duties and powers of the public trustee to act as escrow agent on a contract for
deed to real property as stated in this section. In the event that the public trustee
designates an alternate to serve as escrow agent, the purchaser shall pay to the
designated alternate the escrow fee as stated in paragraph (a) of this subsection (1).
(2) Within ninety days of executing and delivering a contract for deed to real
property, the seller shall file with the county treasurer of the county wherein the
real property is located a written notice of transfer by contract for deed to real
property. Such notice shall not operate to convey title. Such notice shall include the
name and legal address of the seller, the name and legal address of the purchaser,
a legal description of the real property, the date upon which the contract for deed
to real property was executed and delivered, and the date or conditions upon which
the deed to the real property will be delivered to the purchaser, absent default. In
addition, within ninety days of executing and delivering the contract for deed to real
property, the seller shall file a real estate transfer declaration with the county
assessor of the county wherein the property is located, pursuant to the provisions
of section 39-14-102, C.R.S.
(3) The buyer shall have the option of voiding any contract for deed to real
property which fails to designate the public trustee as escrow agent for deposit of
property tax moneys or for which no written notice is filed with the county
treasurer's office or the county assessor's office. Upon voidance of such contract,
the buyer shall be entitled to the return of all payments made on the contract, with
statutory interest as defined in section 5-12-102, C.R.S., and reasonable attorney
fees and costs. This avoidance right shall expire on the date seven years after the
latest execution date on the contract for deed to real property unless exercised
prior to such date.
(4) The provisions of subsections (1) and (3) of this section shall not apply to
the parties to a contract for deed to real property so long as the seller complies
with the requirements of subsection (2) of this section, so long as the real property
which is the subject of such contract for deed to real property is not subdivided into
parcels which are smaller than one acre, and so long as the seller pays the annual
property tax obligations on the real property which is the subject of such contract
for deed to real property or submits a bond or an irrevocable letter of credit in the
amount of the taxes due on such real property to the county treasurer, either of
which shall be immediately payable to such county treasurer upon default. Payment
of such property taxes or submittal of such bond or irrevocable letter of credit shall
be made within thirty days of mailing of the notice of taxes due from the county
treasurer and prior to seeking reimbursement from the purchaser.
(5) Repealed.