A developer in Jefferson County conveys a newly constructed home to a buyer for $600,000. The deed states the consideration as $600,000. The developer's attorney argues that because the transaction involves a new construction sale rather than a resale, the documentary fee should not apply. Which of the following best describes the correct legal outcome under Colorado law?
Correct Answer
C) The documentary fee applies to the full $600,000 consideration because Colorado law does not exempt new construction sales
Under C.R.S. § 39-13-102, Colorado's documentary fee applies to all instruments conveying real property for consideration, without a specific exemption for new construction sales. The fee is calculated on the full consideration stated in the deed — in this case, $600,000 — regardless of whether the property is newly constructed or previously owned.
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Related Topics & Key Terms
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Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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