C.R.S. § 39-11.5-505: Omitted party - definitions.

(1) As used in this section, "omitted party" means any person who, prior to the recording of an application for treasurer's deed for a property, has either acquired a record interest in the property or has obtained a valid possessory interest in and is in actual possession of the property, which interest is junior to the certificate of purchase and would otherwise be extinguished by the treasurer's deed.

(2) (a) The interest of an omitted party in property that is the subject of a treasurer's deed process may be terminated if the omitted party, or anyone claiming by, through, or under an omitted party, in a civil action commenced at any time after a public auction, by any interested person, as defined in subsection (2)(c) of this section, by an omitted party, or by anyone claiming by, through, or under an omitted party, is afforded rights to claim overbid money upon such terms that the court may deem equitable under the circumstances, which terms shall not, however, be more favorable than the person's statutory rights. The court shall give full consideration to whether the omitted party or anyone claiming by, through, or under an omitted party was given or had actual notice or knowledge of the treasurer's deed process and was given an opportunity to exercise statutory rights to claim overbid money.

(b) For purposes of this section, the lien that is the subject of the public auction shall not be extinguished by merger with the title to the property acquired pursuant to section 39-11.5-501 until the interest of any omitted party has been affirmed pursuant to subsection (3) of this section or has been terminated as provided in subsection (2)(a) of this section or by operation of law. An omitted party, or anyone claiming by, through, or under an omitted party, cannot extinguish the lien that is subject to the public auction by enforcement of the lien of the omitted party.

(c) As used in this section, "interested person" means a lawful holder of a certificate of purchase, a holder of a certificate of option for a treasurer's deed or certificate of repurchase issued pursuant to section 39-11.5-401 or 39-11.5-402, a property owner pursuant to section 39-11.5-501, or a person claiming an interest in the property by, through, or under such lawful holder or property owner.

(d) An omitted party, or anyone claiming by, through, or under an omitted party, only has a remedy to claim overbid money as set forth in this subsection (2). An interested person is not able to extinguish an omitted party's interest except as set forth in this subsection (2) or by written waiver or agreement signed by the omitted party or anyone claiming by, through, or under an omitted party.

(3) If an interested person files with a treasurer at any time after a public auction a document affirming an omitted party's interest in a property, subject to the terms, conditions, and provisions of the recorded instrument from which the omitted party's interest is derived, or in the case of an omitted party that is a lessee, subject to the terms and conditions of the lease, whether written or oral, the interest of the omitted party in the property shall not be affected by the public auction, and the omitted party shall have no claim to any overbid money.