Buying in Downtown Colorado Springs? You want clear numbers before you wire funds for closing. One line that catches many buyers by surprise is the Colorado documentary fee, a small recording-related charge tied to your home’s price. Understanding what it is, who pays it, and where it shows up helps you plan your cash to close with confidence.
In this guide, you’ll learn what the documentary fee covers, how it’s calculated in principle, where to find it on your Closing Disclosure, and what to ask your title officer in El Paso County. You’ll also get a simple workflow to estimate your total cash to close. Let’s dive in.
What the Colorado documentary fee is
The documentary fee is a charge assessed when documents that transfer real property are recorded. It is tied to the consideration shown on the deed, which is commonly the sales price. Counties can also charge separate recording fees in addition to the state documentary fee.
You will see different labels for this line item. Some Closing Disclosures or title invoices call it a documentary fee. Others may group it under recording fees and transfer taxes. The purpose is the same. The fee helps fund recording services and related government functions.
Certain transactions can be exempt under state law, such as some intra-family transfers or transfers involving government entities. If you believe your situation may qualify, confirm with the county clerk or your title company before you set expectations.
Who usually pays in El Paso County
By local custom in Colorado, the buyer usually pays the documentary fee at closing. This is not a hard rule. It can be negotiated in your purchase contract. If the parties agree to shift the fee to the seller or split it, your Closing Disclosure will reflect that allocation.
When you review your final figures, check the buyer and seller columns to confirm who is paying the fee on your specific transaction.
How the fee is calculated
The exact rate and any county-specific recording charges must be verified with title or the El Paso County Clerk and Recorder. Here is the general structure you can use to understand the math:
- Documentary fee = consideration subject to the fee × state documentary rate
- Plus county recording fee(s) = flat amounts per document or per page
What counts as consideration is usually the sales price shown on the deed. In some situations, assumed mortgages can be included. Always ask your title officer how they define consideration for your closing.
Illustrative example only
This is a sample to show the method. Confirm your actual rate and fees locally.
- Sales price: $400,000
- Hypothetical documentary rate: $1.00 per $1,000 of consideration
- County recording fee for the deed: example $50 flat
- Calculation: $400,000 ÷ $1,000 = 400 × $1.00 = $400 documentary fee
- Total recorded-charge line item in this example: $400 + $50 ≈ $450
Again, this example is for explanation only. Your actual numbers can differ based on the current rate, the county fee schedule, and the documents recorded at closing.
Where to find it on your Closing Disclosure
Most financed purchases use the federal Closing Disclosure form. Recording and transfer items are typically grouped under the “Other Costs” section. Look for line items labeled “Recording fees and transfer taxes,” “Documentary fee,” or similar wording.
- Check the columns. The form shows separate columns for the Borrower and the Seller. If the documentary fee appears in the Seller column, you are not paying it.
- Compare with estimates. Your title or escrow team will provide itemized estimates before closing. Compare those to the Closing Disclosure and ask about any differences.
- Watch the summary. The Cash to Close summary aggregates your down payment, loan costs, prepaids, credits, and closing costs. If you are paying the documentary fee, it will be included in your total cash to close.
Estimating cash to close in Downtown Colorado Springs
The documentary fee is only one part of your cash to close. In El Paso County, you should also plan for these common items:
- Down payment based on your loan program
- Loan costs: origination, underwriting, appraisal, and credit report
- Prepaid items and prorations: property taxes, prepaid interest, and homeowners insurance
- HOA-related charges: HOA dues, transfer fees, or estoppel fees for condos and townhomes downtown
- Title and escrow: owner’s and lender’s title insurance, escrow settlement fees
- County recording fees for the deed and mortgage
- Documentary fee: state portion plus any county components
- Any negotiated seller credits, concessions, or repair escrows
Local notes for Downtown Colorado Springs:
- Property values influence fees that scale with price. The documentary fee is proportional to the consideration used, so higher purchase prices yield higher fees.
- Many downtown condos and townhomes have HOA transfer or move-in charges. These can add several hundred dollars depending on the association.
- Property taxes are typically prorated at closing. Confirm the current payment schedule with El Paso County so you understand your share at settlement.
A simple workflow to get precise numbers
Use this quick path to dial in your cash-to-close estimate without guesswork:
- Get a signed contract with the purchase price and tentative closing date.
- Request your lender’s cost worksheet and an itemized title estimate from escrow.
- Ask your title officer: “What is the Colorado documentary fee and the El Paso County recording fee for this deed and my mortgage?” Confirm what counts as consideration.
- Build a worksheet that includes down payment, loan costs, prepaids, title and escrow fees, documentary fee, county recording fees, and prorations, then subtract any seller credits.
- Review your Closing Disclosure at least three business days before closing and compare the documentary and recording entries to the earlier estimate. Ask questions until it all balances.
Blank worksheet you can copy
- Purchase price:
- Buyer down payment:
- Lender fees:
- Title and escrow fees:
- Owner’s title insurance:
- Lender’s title insurance:
- Property tax prorations:
- HOA fees or transfer charges:
- Documentary fee (state):
- County recording fee(s):
- Seller credits:
- Total estimated cash to close:
Tips to avoid surprises
A few small steps can save you from last-minute stress.
- Verify the fee basis. Confirm with title how they define consideration and whether any assumed mortgages are included.
- Get the county schedule. Ask for the El Paso County Clerk and Recorder fee schedule for current deed and mortgage recording fees.
- Ask about exemptions early. If you think an exemption might apply, raise it during contract or title review so it can be documented.
- Watch HOA items. Downtown condos often have transfer or move-in charges. Ask your agent and title team to confirm amounts with the association in advance.
- Confirm credits in writing. If the seller agreed to cover the documentary fee or provide a credit, make sure it is in the contract and appears correctly on the Closing Disclosure.
Common scenarios and what they mean for you
- Buyer custom, but negotiable. In most Colorado Springs transactions the buyer pays the documentary fee by custom, yet you can negotiate this in the contract.
- Mortgages and recording. Mortgages usually incur county recording fees. The documentary fee applies to conveyances of real property, which generally means the deed.
- Exempt transfers. Some transfers are exempt under state law. Your title officer or county clerk can confirm whether your situation qualifies and what paperwork is needed.
How The Johnson Team helps you plan
You deserve a clear, no-drama closing. Our agents handle dozens of local transactions every month across El Paso County, and we work closely with title and lenders to give you accurate, timely estimates. If you are relocating or buying from out of state, we coordinate remotely, provide quick answers, and keep your timeline on track. If you also need to sell, ask about our productized options that can reduce risk and help you move on your schedule.
When you are ready, reach out to The Johnson Team for a quick, local walkthrough of your cash-to-close numbers and a plan that fits your goals.
FAQs
In Colorado, who usually pays the documentary fee at closing?
- By local custom the buyer usually pays, but it is negotiable and your contract controls who pays.
How is the Colorado documentary fee calculated for a Downtown Colorado Springs purchase?
- Title applies the state documentary rate to the consideration used for the deed, then adds county recording fees as applicable.
Where does the documentary fee appear on the Closing Disclosure form?
- It typically shows in the “Other Costs” section under recording fees and transfer taxes, with buyer and seller columns indicating who pays.
Are any transfers exempt from the Colorado documentary fee?
- Yes, certain transfers described by statute, such as some intra-family or governmental transactions, may be exempt; confirm with title or the county clerk.
Can a seller credit cover the buyer’s documentary fee in El Paso County?
- Yes, credits and concessions are negotiable and, if agreed, will appear on the Closing Disclosure to offset your cash to close.
