The Deed of Trust
In Colorado, real estate purchases in which the purchaser borrows money to pay for property are typically secured with a Deed of Trust. Rather than a mortgage in which the parties are the borrower and the lender, a Deed of Trust is a three-party agreement among a borrower, a lender, and the county Public Trustee. The Deed of Trust acts as a lien on the property until the borrower has completed payment of their loan. At that point, the lender makes a request to the Public Trustee to release the Deed of Trust, which, when recorded, removes the lien against the property.
Releasing a Deed of Trust
When a real estate loan is satisfied, the lender executes a Request for Release of Deed of Trust with the Public Trustee for the county in which the property is located. The Public Trustee makes sure that the release is accurate and complete, executes the release, and records it with the County Clerk and Recorder.
Requirements to Release a Deed of Trust
The requirements for releasing a Deed of Trust are in the Colorado Revised Statutes (C.R.S.) §38-39-102 and are as follows:
Evidence of Debt
Original evidence of debt that corresponds to the Deed of Trust, including the principal amount, dates, and the number of notes/deeds of trusts involved. The note must be marked “Paid in full.” Assignments and powers-of-attorney should also be provided when applicable. For partial and/or full releases with a live note, the original note must be presented.
If the owner of the evidence of debt is a qualified holder, as described in C.R.S. §38-38-100.3, the Public Trustee may accept a Request for Release of Deed of Trust without the production of Evidence of Debt. If the original promissory note has been lost, a Lost Instrument Bond, made by a company authorized to issue such bonds in Colorado, must be submitted.
If the holder of the note is a private party and deceased, a copy of the death certificate along with a copy of the will or personal representative papers will need to be provided, and the person appointed to manage the decedent’s affairs would be required to sign the Release of Deed of Trust form. However, if the note is held in joint tenancy, a living joint tenant may sign the release and only a copy of the death certificate is required.
Deed of Trust
The Recorded Deed of Trust, either an original or a copy, must include the parties, the grant to the Public Trustee, and the legal description of the property.. The Clerk and Recorder’s stamp must be on the document and legible. You can obtain a recorded copy from the Boulder County Clerk and Recorder, 1750 33rd Street, Suite 201, Boulder, CO 80301 (303) 413-7770.
Request for Release of Deed of Trust
- Correct name of borrower/grantor
- Correct name of the original beneficiary/lender
- Correct name of the current holder of the evidence of debt (or a title company)
- Reception number of the Deed of Trust
- Notarized signature/signatures of the holder(s) of the note or title company, or of the agent for the holder (must send copy of POA for agent)
- A return address, written on the back of the Release of Deed of Trust or in the “return to” box so that the County Clerk and Recorder can forward the recorded release appropriately.
- Payment of $28.00 to the Boulder County Treasurer to execute and record a one page release form. Include $5.00 for each additional page that needs to be recorded (e.g. separate legal descriptions, affidavits, etc.).
- A large stamped, addressed envelope in which to return the original note and Deed of Trust.