Colorado doesn't have a real estate transfer tax in the traditional sense — but it does have a documentary fee, recording fees, and a 2% non-resident withholding requirement that surprises out-of-state land sellers every time. Under C.R.S. § 39-13-102, the documentary fee is $0.10 per $1,000 of purchase price. It's modest. But the non-resident withholding under C.R.S. § 39-22-604.5 can hold 2% of your gross sale price until you file a Colorado return. On a $200,000 land sale, that's $4,000 sitting with the state. Call 970-478-1022 — we buy Colorado land statewide and explain every fee before you sign anything.
Colorado's "transfer fee" is technically called the documentary fee, governed by C.R.S. § 39-13-102. The rate is $0.10 for every $1,000 of consideration — meaning the total purchase price. On a $150,000 land sale, the documentary fee is $15. It's collected at closing by the title company and remitted to the Colorado Department of Revenue.
The documentary fee applies to any deed conveying real property for consideration exceeding $500. It's based on the actual consideration — not the assessed value, not a county-set amount. When the purchase price is documented accurately on the deed and the HUD/settlement statement, the calculation is straightforward.
Technically, the buyer pays the documentary fee in Colorado — it's the buyer's obligation under § 39-13-102. In practice, it's almost always handled at the closing table by the title company and shown on both the settlement statement and the deed. Sellers rarely pay it, but in a negotiated deal, the purchase agreement can specify who covers it.
Several common land transfer situations are exempt from the documentary fee. Knowing these saves confusion at closing. Exempt transfers include:
If your transfer is exempt, the deed should recite the exemption and show $0 or "no consideration" as the purchase price. The title company handles this language at closing.
Beyond the documentary fee, every deed must be recorded at the county clerk and recorder under C.R.S. § 38-35-109. Recording fees vary by county. Statewide, recording a deed typically runs $13–$25 for the first page and $5–$13 for each additional page. A standard warranty deed on a simple land sale runs 1–2 pages — budget $25–$50 for recording. Larimer County charges $13 per page with a $13 minimum. Weld County and other larger counties have similar schedules.
The title company includes recording fees in your settlement statement. You'll see them as a separate line item, not bundled into the documentary fee. These fees are paid to the county, not the state.
This is the provision that catches out-of-state landowners off guard. If you're not a Colorado resident at the time of sale, the title company is required to withhold 2% of the gross sale price and remit it to the Colorado Department of Revenue. This is not a tax — it's a prepayment or deposit against your Colorado income tax obligation on the sale.
On a $200,000 sale: $4,000 withheld. On a $500,000 sale: $10,000 withheld. You get it back (or apply it) when you file a Colorado non-resident return (DR 0104) for the year of the sale. If your actual Colorado tax is less than what was withheld, you get a refund. If more, you pay the difference.
Exemptions from the withholding requirement include: Colorado residents (you certify this on an affidavit at closing), sales where the gain is entirely exempt from Colorado income tax, and certain qualifying 1031 exchanges. The seller must provide a written certificate or affidavit to avoid the withholding.
HOA transfer fees are private fees charged by homeowners associations under their CC&Rs — they are entirely separate from the state documentary fee and have nothing to do with C.R.S. Title 39. These fees, typically $200–$600, compensate the HOA for updating ownership records and providing disclosure documents. If you're selling HOA-restricted land, budget for this separately and confirm the amount with the HOA management company before closing.
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In rural Colorado counties — Costilla, Huerfano, Conejos, Mineral — title companies often need to order out-of-county title searches because historical records are incomplete or only partially digitized. This can add $100–$300 to title insurance costs and 3–5 days to the timeline. Budget for it on any San Luis Valley or southern Colorado transaction.
In high-activity counties — El Paso, Larimer, Weld — title companies have full digital records and turn commitments in 2–4 business days. Closing cost schedules are well-established and predictable. The documentary fee rarely exceeds $100 on rural land transactions in these counties regardless of the volume of deals going through the county recorder's office.
For non-resident landowners — a large portion of absentee Eastern Plains and San Luis Valley parcels are owned by out-of-state heirs — the 2% withholding under C.R.S. § 39-22-604.5 is the most impactful fee at closing. Filing your Colorado non-resident DR 0104 promptly in the following tax season recovers any over-withholding within 4–6 weeks of filing.
See also: full Colorado closing timeline, selling without a realtor, and Colorado property tax on vacant land.
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The Colorado documentary fee is $0.10 per $1,000 of purchase price under C.R.S. § 39-13-102. On a $100,000 land sale that's $10. On a $500,000 sale it's $50. It's modest compared to transfer taxes in many other states. The buyer technically owes it, though it's handled by the title company at closing. Exempt transfers under C.R.S. § 39-13-104 pay nothing.
Under C.R.S. § 39-13-104, exempt transfers include gifts between family members, intra-family estate planning transfers, deeds in lieu of foreclosure, transfers to or from government entities, and correction deeds where no new consideration is paid. If your transfer is exempt, the deed should state the exemption and reflect no or nominal consideration.
Under C.R.S. § 39-22-604.5, if you're not a Colorado resident when you sell, the title company withholds 2% of the gross sale price and remits it to the Colorado Department of Revenue. It's a prepayment against your Colorado income tax, not an additional tax. You recover any excess when you file a Colorado non-resident return (DR 0104) for the sale year.
Possibly not. Intra-family transfers and transfers to a grantor's own revocable trust for no consideration are exempt under C.R.S. § 39-13-104. But transfers to an LLC or corporation — even one you own — for consideration or in a taxable exchange may trigger the fee. Consult a Colorado real estate attorney to confirm the structure before recording.
Recording fees are set by each county clerk and recorder under C.R.S. § 38-35-109. Most Colorado counties charge $13–$25 for the first page of a deed and $5–$13 per additional page. A standard one-page land deed costs $13–$25 to record. The title company includes recording fees in your settlement statement and pays the county directly at closing.
Yes, by certifying you're a Colorado resident at closing via an affidavit. If you're a non-resident, exemptions exist for transactions where gain is entirely exempt from Colorado income tax or for qualifying 1031 exchanges. Otherwise the withholding is mandatory — the title company faces liability for failing to collect it. File your Colorado non-resident DR 0104 promptly after the sale to recover any over-withholding.
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