Colorado · owner financing
Colorado owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Colorado — statute, recording, default remedies, interest caps, and where deals actually happen.
C.R.S. § 38-35-101 et seq. (recording); C.R.S. § 38-38-101 et seq. (foreclosure framework, applied by analogy); no installment-contract-specific statute
Recordable with the county clerk and recorder under C.R.S. § 38-35-109. No statutory deadline; recording necessary for constructive notice and priority.
Hybrid. Forfeiture available under contract terms but Colorado courts apply equitable-mortgage doctrine; if recharacterized, the public-trustee/judicial-foreclosure framework with statutory redemption applies.
Is owner financing legal in Colorado?
Recognized at common law as 'installment land contracts' or 'contracts for deed.' Colorado courts treat them as equitable mortgages where buyer has substantial equity.
How do you record a owner financing agreement in Colorado?
Recordable with the county clerk and recorder under C.R.S. § 38-35-109. No statutory deadline; recording necessary for constructive notice and priority.
What happens if the buyer defaults?
Hybrid. Forfeiture available under contract terms but Colorado courts apply equitable-mortgage doctrine; if recharacterized, the public-trustee/judicial-foreclosure framework with statutory redemption applies.
What is the maximum interest rate?
45% per annum criminal usury (C.R.S. § 18-15-104). Civil usury limited to 8% in absence of written agreement, but parties can contract higher (C.R.S. § 5-12-103). UCCC limits apply for consumer credit.
What disclosures are required?
Seller's Property Disclosure (customary, not strictly statutory); Source of Water Disclosure (C.R.S. § 38-35.7-104); lead-paint federal disclosure; HOA disclosures.
Who's protected — buyer vs. seller
Buyer protections
Equitable-mortgage doctrine; UCCC consumer-credit protections where applicable; equitable redemption.
Seller protections
Contractual forfeiture for low-equity defaults; ability to pursue judicial foreclosure; specific performance.
Where in the state do these deals happen?
Common for rural land in eastern plains and Western Slope, recreational mountain parcels, owner-financed homes in smaller markets.
Colorado cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Schiff v. Sequa, 99 P.3d 80 (Colo. App. 2004); research needed for additional controlling precedent.
Looking at a Colorado deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Colorado contracts and remedies are fact-specific — consult a licensed Colorado real-estate attorney before signing anything.