real estate

Colorado documentary fee on home sale: what it is and how to calculate it

A clear, practical guide to the Colorado documentary fee on home sales: what it covers, the statutory rate, who usually pays, and simple examples to calculate it for your closing.

Housing Ledger Editorial

04 Oct 2026 • 5 min read

What the Colorado documentary fee is and why it matters

The Colorado documentary fee is a small state fee tied to the recording or transfer of residential real property, typically appearing as a line item among closing costs when a home changes hands ^[1]. It’s imposed specifically for recording a grant or conveyance of residential real property and is collected at the time the deed or other conveyance is recorded with the county clerk and recorder ^[1]. Because it’s a statutory charge, buyers and sellers should expect to see it disclosed on settlement statements, and who pays it can be negotiated or determined by local custom and the contract of sale ^[2]. Learn more in Arizona real estate transfer tax: what it is and who pays.

How the fee is calculated matters for budgeting. In Colorado the documentary fee is expressed by statute in terms tied to the sale consideration, so the dollar amount depends on the amount of the transaction rather than being a flat administrative charge ^[3]. In practice this means the fee will scale with the sale price and therefore can be a predictable component of closing costs when you know the contract price ^[3].

For home buyers and sellers this has a couple of practical implications. First, because the fee is part of closing costs it should be included when preparing the buyer’s funds-to-close or estimating seller net proceeds ^[2]. Second, because the calculation is statutory, closing agents and title companies routinely compute and collect it at closing alongside recording charges and other required fees ^[1] ^[2].

If you want to estimate closing costs before listing or making an offer, ask your agent or title company for a preliminary settlement statement that will show the documentary fee and other customary charges so you can see the line-item effect on your cash requirements at closing ^[2].

How the documentary fee is calculated in Colorado

Understanding how the Colorado documentary fee is calculated makes it easier to estimate closing costs when you sell a home. Below are clear, step-by-step instructions and examples you can follow to compute the fee. ^[3]

Know the rate the statute sets: the documentary fee is one cent for each one hundred dollars of consideration (0.01%). ^[3]
Use the simple calculation: multiply the sale price by 0.0001 to get the documentary fee, or think of it as $0.01 for every $100 of the sale price. ^[4]^[3]
Double-check calculations at closing: because the statutory language establishes both the rate and the threshold, verify the computed fee against the statute language when reviewing closing documents. ^[1]^[3]

If you want, provide a sale price and I’ll walk through the calculation step-by-step with that exact number.

Examples: estimate the fee for common sale prices

Quick examples make the Colorado documentary fee easy to estimate for common sale prices. ^[5]

The documentary fee is calculated by using the multiplier 0.0001 (which is the same as $0.01 per $100) applied to the sale price. ^[5]

Example calculations:

$400,000 × 0.0001 = $40 documentary fee. ^[5]
$500,000 × 0.0001 = $50 documentary fee. ^[6]

Use the same multiplier for other prices: multiply any sale price by 0.0001 to get the documentary fee in dollars. ^[5]

These examples reflect the statewide documentary fee calculation used in Colorado closings, and they exclude other closing costs or any county- or locally-imposed charges that might apply. ^[6]

If you want to check more prices quickly, write the sale price and apply the same 0.0001 multiplier for an immediate estimate. ^[5]

Who typically pays the documentary fee and how it appears at closing

The documentary fee is collected at closing and appears on the settlement statement among other recording or transfer-related charges, so you will see it listed with other title and recording fees on your closing disclosure or HUD-1 form. ^[2]

Who pays the fee can vary by local custom and by what the purchase agreement says, so the contract and closing statement determine whether the buyer or seller is responsible. ^[2]

Practical example: if a purchase contract states that the buyer pays recording and transfer fees, the documentary fee will be charged to the buyer at closing and shown on the buyer’s side of the settlement statement. ^[2]

Another example: if the contract assigns transfer taxes and recording fees to the seller, the documentary fee will be billed to the seller and appear on the seller’s net proceeds line of the closing statement. ^[2]

What to check at closing:

Review the settlement statement line items for recording, transfer, and documentary fees to see who was charged. ^[2]
Compare the settlement statement to your purchase agreement or closing instructions to confirm the assigned payer. ^[2]

If anything looks inconsistent, ask the title company or closing agent to explain the entry and to point to the contract provision that assigns the charge. ^[2]

Because local practice may vary about buyer vs. seller responsibility, it’s a good idea to confirm responsibility during contract negotiations or in the closing disclosure period so there are no surprises at signing. ^[2]

Frequently asked questions about the Colorado documentary fee

Is the fee the same across Colorado?

Yes — the documentary fee is a statewide statutory fee calculated at the rate noted in state law. ^[3]

Is the fee a percentage or flat amount?

It functions like a very small percentage: the statute describes it as one cent for each one hundred dollars, which is effectively 0.01% of the transaction amount. ^[3] ^[4]

Are there caps or minimums?

The statute references transactions of "five hundred dollars or less" in the context of whether a documentary fee is payable, so consult the statute text for the exact application to low-value conveyances. ^[1] ^[3]

How to calculate the fee — a simple example

Where to confirm the current rule

The statutory language in the state code and the bill that imposed the residential documentary fee set out the calculation and applicability, so review those official texts for exact wording and any exceptions. ^[1] ^[3]

Notes

These answers summarize how the Colorado documentary fee is described in the cited statutory and explanatory sources. ^[1] ^[3] ^[4]

Quick checklist to estimate and handle the documentary fee

Multiply the sale price by 0.0001 (or use $0.01 per $100) to estimate the fee; this gives you a quick, back‑of‑the‑envelope number to expect at closing. ^[3] ^[7]
Check your purchase agreement and closing disclosure to see who pays the fee in your transaction; the contract and the final closing statement will specify whether buyer or seller is responsible. ^[2]
Ask your title company or closing agent if you need an exact amount or if local recording charges add separate costs; the title or escrow agent can confirm the precise documentary fee and any additional county recording fees that may appear on the HUD‑1/Closing Disclosure. ^[2] ^[7]

Examples to make this concrete

Example B: If your contract says the seller pays documentary and transfer taxes, verify that the closing disclosure shows the documentary fee charged to the seller line‑item rather than the buyer. ^[2]

Practical tips

When budgeting for closing, include both the documentary fee estimate and a small buffer for county recording or miscellaneous filing fees that your title company may charge separately. ^[2] ^[7]
If you see a flat per‑document recording charge on your estimate, ask whether that is a county recording fee distinct from the documentary fee tax. ^[7]
Keep a copy of the recorded deed and the closing disclosure after closing so you can confirm the final documentary fee assessed and who paid it. ^[2]