A Colorado broker is representing a buyer who is purchasing a foreclosed property at a public trustee sale in Arapahoe County for $275,000. The buyer asks whether the Colorado documentary fee applies to the purchase of a property at a public trustee foreclosure sale. Which answer correctly reflects Colorado law?
Correct Answer
B) The documentary fee applies to the full $275,000 because the public trustee deed conveys property for consideration
Under C.R.S. § 39-13-102, the documentary fee applies to instruments conveying real property for consideration, including public trustee deeds issued after a foreclosure sale. The public trustee deed conveys title to the successful bidder for the bid price, which constitutes consideration. The fact that the sale is conducted by the county public trustee — a government official — does not exempt the transfer from the documentary fee. The fee is assessed on the full $275,000 bid price.
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Related Topics & Key Terms
Key Terms:
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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