http://www.colorado.gov/cs/Satellite/Revenue-MV/RMV/1201542320950
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Buying and Selling
Remote Keyless Entry and Car Buyer's Responsibilities:
Check Motor Vehicle Verification System to confirm vehicle has not been reported stolen.
Check National Motor Vehicle Title Information System (Please note there is a fee for this service) to Research Vehicle History
Check National Insurance Crime Bureau to confirm vehicle has not been declared a total loss.
Go to the county motor vehicle office, in the county in which buyer lives, to obtain a temporary permit.
Buyer must present documents received from the seller (see Seller's Responsibilities below), proof of insurance, as well as Secure and Verifiable Identification, to the clerk to obtain the temporary permit.
Seller's Responsibilities:
(Provide the following items to the buyer)
The Colorado Certificate of Title.
If there is more than one owner named on the front of the Certificate of Title, all owners must print and sign their name as seller.
Enter purchase price and date.
After Hours Purchase C.R.S. 42-3-115(2)(b), C.R.S. 42-6-113; A buyer of a vehicle may operate a vehicle on the highway prior to registering the vehicle when:
The buyer has purchased the motor vehicle within the last 36 hours from a person who is not a licensed motor vehicle dealer.
The vehicle was purchased either on a Saturday, on a Sunday, on a legal holiday, or between 5p.m. and 8 a.m.
The vehicle is being driven from the place where the seller stored the vehicle to the place where the buyer intends to store the vehicle.
The buyer must carry in the vehicle:
A bill of sale that identifies the vehicle by year, make and VIN and shows the time and date of sale and is signed by both the buyer and the seller.
Proof of insurance.
Fill in the name(s) and addresses of the buyer at this time.
Complete odometer disclosure reading and indicator information on the Certificate of Title or it may be disclosed on the DR2173 Motor Vehicle Bill of Sale form which can be purchased through Standard Register at 303-860-8000.
An emissions inspection certificate is required if the buyer lives in an emissions area.
If the title has been branded “Rebuilt from Salvage”, the seller must complete the Rebuilt from Salvage Disclosure. If reason for Salvage is unknown, a vehicle record search must be completed to determine the reason the vehicle was salvaged.
Note- Seller keeps license plates[/COLOR]
It looks like the seller keeps the plates in Colorado.