Colorado Documentary Fee: What Buyers Need To Know

What is that small tax tucked into your closing costs in Denver, and why does it matter when you are budgeting? If you are buying a home, the documentary fee can feel like one more mystery line on your paperwork. You want clarity, not surprises, so you can plan with confidence. In this guide, you will learn what the fee is, how it is calculated, where it appears on your Loan Estimate and Closing Disclosure, and how to confirm who pays. Let’s dive in.

Documentary fee explained

The documentary fee is a government tax or fee connected to recording or transferring real property documents. In Colorado, you may hear it called a documentary tax, documentary stamp, or transfer tax. It is not a private title, escrow, or lender charge.

The fee helps fund government services and is assessed based on what is shown on the recorded instrument. That can be the consideration on the deed, which is the purchase price, or the amount of debt in a deed of trust. The county recording office collects it at closing, often through your title or escrow company, and then remits it according to law.

The important takeaway for your budget is that documentary fees in Colorado are usually modest compared with your purchase price. They often land in the tens to low hundreds of dollars on typical Denver resale homes.

How Colorado calculates it

Colorado’s documentary fee is set by statute and administered by state and county offices. The exact rate, which documents it applies to, and any minimums or exemptions can change. The fee may be calculated on the deed based on your purchase price, or on the deed of trust based on your loan amount, depending on state rules for each recorded document.

Local recording fees are separate. County clerk and recorder charges, like flat per-document or per-page costs, will appear as their own items on your Closing Disclosure. These are not the same as the state documentary fee.

Action step: Always confirm the current rate and how it applies to your transaction with your title company, the Colorado Department of Revenue, or the Denver County Clerk & Recorder.

Where to find it on your Loan Estimate and CD

You can spot this fee early on your Loan Estimate. Look in the “Other Costs” section, under government recording and transfer charges. The Loan Estimate gives a best-effort preview; the Closing Disclosure shows final, exact numbers.

On the Closing Disclosure, go to page 2. In “Other Costs,” you will see “Taxes and Other Government Fees.” The documentary fee may be listed as “Transfer Taxes,” “Documentary Fee,” or labeled specifically for the deed or deed of trust. If it applies to the loan, you might see it referenced alongside the deed of trust.

If the CD shows a combined total for recording and transfer charges, ask your title or escrow officer for a line-by-line breakdown. They can point to the exact documentary fee line so you know what you are paying and why.

Who pays it in Denver closings

Who pays is guided by two things. First is the law that defines which instrument the fee is tied to. Second is your purchase contract, which allocates closing costs between buyer and seller.

In Colorado, the contract is key. Local custom can vary by market conditions, price point, and negotiation. You may see contract language such as “Seller to pay all transfer taxes” or “Buyer to pay recording fees.” Those clauses decide who is charged on the Closing Disclosure.

In practice, the party whose document triggers the fee sometimes ends up paying it, but that is not a rule. Your written agreement controls. Ask your agent and the title company to confirm how your contract allocates documentary and recording charges well before closing.

Exemptions and special cases

Some transfers can be exempt or treated differently under Colorado law. Examples include certain government or nonprofit transfers, deeds in lieu of foreclosure under limited conditions, or transfers between spouses or to revocable trusts. The specifics depend on statute.

If your purchase includes both a deed and a deed of trust, there may be documentary taxes associated with each instrument. One can be based on the purchase price and the other on the loan amount, depending on how the statute applies. Your title company can clarify what applies to your file.

Denver recording and local fees

Denver County’s recording fees are separate from any state documentary fee. These can include flat per-document charges, per-page fees, or filing fees for specific documents. Any special local assessments or municipal transfer fees would also be listed as government charges. Many Colorado localities do not add an extra local transfer tax, but you should verify for Denver.

Quick check: Confirm Denver County’s current clerk and recorder fee schedule with your title company or the county office, since fee schedules can change.

Illustrative Denver examples

The examples below show scale only and are not current law. They use an assumed example rate of $0.01 per $100 of consideration or loan amount to illustrate how small changes affect the fee. Always confirm the actual rate and application with your title company or the Denver County Clerk & Recorder.

• Home price $300,000 → illustrative documentary fee: $30
• Home price $500,000 → illustrative documentary fee: $50
• Home price $750,000 → illustrative documentary fee: $75
• Loan amount $400,000 → illustrative deed of trust documentary fee: $40

How this might appear on your Closing Disclosure under “Other Costs” → “Taxes and Other Government Fees” (example labels only):

• Recording fee (county) … $X.XX
• State documentary tax on deed … $XX.XX
• State documentary tax on deed of trust … $XX.XX
• Total government recording and transfer charges … $XXX.XX

Again, treat these as examples to help with planning. Your title or escrow officer will calculate and disclose the exact amounts for your file.

How to avoid surprises

Before you make an offer, ask your lender and a Denver-area title company for a sample Closing Disclosure for your price range. Request a breakdown of government fees so you can budget with confidence. If you are negotiating costs, include clear contract language that allocates transfer and recording charges.

When you receive your Loan Estimate, go straight to the “Other Costs” section. If the estimate looks low or high, ask for a detailed explanation. Then, when your Closing Disclosure arrives, compare the two and confirm the documentary fee lines.

If you see a higher than expected fee, ask your title officer for an itemized list and the statutory basis. If there is an error in the amount or how it was applied, request a correction before funding. Title teams handle these questions often and can resolve discrepancies quickly.

Quick buyer checklist

• Ask for a line-by-line estimate of government fees for your target price range.
• Confirm who pays documentary, transfer, and recording fees in your contract.
• Identify the documentary fee on your Loan Estimate and Closing Disclosure.
• If the CD shows a combined total, request a full itemization.
• Verify current rates and county recording fees with your title company, the Colorado Department of Revenue, or the Denver County Clerk & Recorder.
• If the seller agreed to pay certain fees, confirm the CD shows the correct credit.

The bottom line

For Denver buyers, the documentary fee is a small but important piece of your closing costs. It is a government charge connected to your recorded documents, and it typically appears under Taxes and Other Government Fees on your Closing Disclosure. The amount is usually modest, but you still want it clearly disclosed and correctly allocated by your contract.

If you want help reading your Loan Estimate or closing documents, our local team is happy to walk through the numbers with you and coordinate with your title company. For calm, clear guidance from offer to close, connect with the Pinette Realty Group, LLC.

FAQs

Is the Colorado documentary fee the same as a transfer tax?

• They are closely related terms. Many people use “documentary tax” and “transfer tax” interchangeably for government charges on recorded real estate documents. Confirm what applies to your transaction with your title company.

Where will I see the fee on my Closing Disclosure in Denver?

• On page 2, under “Other Costs,” look for “Taxes and Other Government Fees.” The fee may be labeled “Transfer Taxes,” “Documentary Fee,” or identified by document type.

Who typically pays the documentary fee in Colorado home sales?

• The purchase contract decides. Local custom varies, but payment is allocated by your written agreement. Ask your agent and title company to confirm how your contract splits the costs.

Can I estimate my closing costs using the documentary fee amount?

• Yes for planning, but it is only one part of government charges. Include county recording fees as well, and always request an itemized estimate from your title or escrow company.

What if the sale falls through after the fee is collected?

• If the documents were recorded and the fee was remitted, it is generally not refundable. If funds were only held in escrow and the deal did not close, the escrow holder returns funds according to the contract and escrow instructions.