The city of Telluride, Colorado has enacted a local real estate transfer tax in addition to the state documentary fee. A buyer purchasing a $900,000 property in Telluride asks her broker whether she must pay both the state documentary fee and the Telluride local transfer tax. Which answer is correct?
Correct Answer
C) Both the state documentary fee and the Telluride local transfer tax apply as separate charges
Colorado law permits home-rule municipalities to enact their own local real estate transfer taxes in addition to the state documentary fee under C.R.S. § 39-13-102. Telluride is a well-known example of a Colorado municipality that imposes a local transfer tax (historically used for affordable housing and community purposes). Both charges are separate and both apply — the state documentary fee is paid at recording, and the local transfer tax is paid to the municipality per its own ordinance.
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Related Concepts
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%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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