Maria is purchasing a single-family home in Denver County for $450,000. At closing, the title company asks who is customarily responsible for paying the Colorado documentary fee. Which answer correctly reflects Colorado custom and law?
Correct Answer
D) The seller pays the documentary fee because it is a cost of transferring title
In Colorado, it is the customary practice — and consistent with the structure of C.R.S. § 39-13-102 — that the seller pays the documentary fee, as it is considered a cost associated with transferring title. The fee is due when the deed is recorded, and the seller is the grantor conveying the property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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