Selling a home in Colorado

Transfer tax

Colorado has no true state transfer tax, only a state documentary fee of one cent for each $100 of the sale price (about $30 on a $300,000 home), charged when the deed is recorded and only on sales over $500. Who pays it is set by the purchase contract. A small number of resort towns, such as Aspen, charge their own real estate transfer tax.

Local add-ons: A few home-rule resort towns levy their own real estate transfer tax (for example Aspen, 1.5% combined, which the city says is the buyer's responsibility). Most of the state has none.

Source: C.R.S. 39-13-102 (documentary fee)

Seller disclosure

Colorado has no statute requiring a single general seller disclosure form. The Colorado Real Estate Commission publishes a Seller's Property Disclosure form that is commonly used in brokered sales, and sellers are expected to disclose known material defects. Separate statutes require specific written disclosures, such as the source of drinking water (C.R.S. 38-35.7-104) and the special taxing district notice (C.R.S. 38-35.7-101).

Source: C.R.S. 38-35.7-104 (water source disclosure)

Who handles the closing

Colorado closings are customarily handled by title companies, and state law does not require an attorney at closing, though either side may hire one.

Source: HomeLight, states that require a real estate attorney at closing (secondary source)

Also worth knowing

If the seller's last known address is outside Colorado and the price is over $100,000, the closing company generally withholds 2% of the sale price or the net proceeds, whichever is less, for state income tax. Sellers who qualify for an exemption, such as selling their principal residence, can sign an affirmation to avoid it.

Source: C.R.S. 39-22-604.5 (nonresident withholding)

Also worth knowing

Sellers of homes must tell the buyer in writing where the drinking water comes from (a well, a named water provider, or another source) and hand over a copy of the well permit if there is a well.

Source: C.R.S. 38-35.7-104

Also worth knowing

Every residential purchase contract must include a bold notice that special taxing districts can carry debt that may raise property taxes. A seller who leaves it out can be sued for damages.

Source: C.R.S. 38-35.7-101

Checking an agent's license

Real estate agents in Colorado are licensed by the Colorado Division of Real Estate (Department of Regulatory Agencies). You can look up any agent before you work with them.

Colorado Division of Real Estate (Department of Regulatory Agencies) license lookup