Chapter 2 - § 2.3 • LITIGATION GUARANTEE

• Jurisdiction: Colorado

§ 2.3 • LITIGATION GUARANTEE

Review of the vesting deeds for all property potentially involved in a contemplated quiet title suit is necessary, but it is only the beginning. Rule 105(b) and C.R.S. § 38-35-114¹⁰ require that all parties with a record interest in the subject property be named as parties by the plaintiff. The best way to ensure that all parties with a record interest are identified is to contact a title insurance company that does business in the area where the property is located and order a "litigation guarantee." This is an insurance product similar to a title insurance policy. It will list all the effective documents recorded against the property in question. The insurance premium will be based on the amount of coverage. This will usually, but not always, be the value of the property. The litigation guarantee will not only list the documents of record, but the title company will supply copies of the documents as well. This is necessary because the lawyer will want to examine all the documents and develop a list of all parties whose names appear in the record. They will almost certainly become defendants in the upcoming lawsuit. Title companies will update the litigation guarantee upon request and this should be done after the case is filed to see whether additional parties obtained an interest in the subject property from the time of the original litigation guarantee to the time the lis pendens was recorded. (Parties obtaining an...