Shopping for a condo in LoDo and trying to decode the “documentary fee” on your closing estimates? You are not alone. It is a small line item, but it raises a lot of questions when you are comparing units across different buildings. Here is a clear, practical guide to what the fee is, how it is calculated, who usually pays, and how to budget for it in LoDo. Let’s dive in.
Colorado documentary fee, explained
The documentary fee is a state-imposed charge collected when certain documents are recorded with the county clerk. In a typical purchase, this includes the deed and, if you are financing, the mortgage or deed of trust. It is separate from county recording fees and any HOA transfer or resale fees.
County clerks collect the state documentary fee at the time of recording and apply the rules set by Colorado law. Title companies use those rules to prepare your closing figures. Keep the distinction clear in your budget: documentary fee is a state recording-related charge, not a title fee, not a county page fee, and not an HOA fee.
How the fee is calculated
In Colorado practice, the documentary fee is calculated as a small dollar amount per unit of the consideration shown on the instrument being recorded. That usually means the purchase price for the deed and the loan amount for the mortgage. The fee is assessed on each document that is subject to it, so you may see one fee for the deed and another for the mortgage.
A common way you will see it estimated is a fixed amount per each $1,000 of consideration. For example, using a simple $1 per $1,000 illustration:
- Purchase price $400,000 → deed documentary fee about $400
- Purchase price $650,000 → deed documentary fee about $650
- Loan amount $520,000 → mortgage documentary fee about $520
Important notes for your exact numbers:
- Rounding rules, minimums, and the precise per-unit charge are set by statute and county procedure. They can affect the final figure.
- Ask your title company or the Denver County Clerk how they handle rounding on partial $1,000 increments. Some round up, others prorate.
- If both a deed and a mortgage are recorded, expect two separate documentary fee line items.
Treat the examples above as illustrative. Always confirm the current rate and computation with your title team or the Denver County Clerk before you finalize a budget.
Who pays and where it shows on your CD
Who pays the documentary fee is governed by your contract and local practice. It is negotiable.
- Mortgage documentary fee. This is usually paid by the borrower, since the buyer is recording the mortgage.
- Deed documentary fee. This varies by contract and custom. In some deals the seller pays, in others the buyer pays, and sometimes it is split. Check the executed purchase agreement to see what was negotiated.
On your lender’s Closing Disclosure, you will typically find documentary fees under “Government recording and transfer charges.” Final title statements often itemize them alongside county recording fees. You might see entries such as “Documentary fee (deed),” “Documentary fee (mortgage),” and “Recording fees.” Your Closing Disclosure must be delivered at least three business days before closing, which gives you time to review those line items.
Budgeting for LoDo condos
In LoDo, the documentary fee is usually a small percentage of your price and loan amount. Still, it can apply to both deed and mortgage, and it is just one piece of closing costs. HOA-related charges can vary widely between buildings, which means the total due at closing can differ more than you expect from one condo to the next.
To compare units and buildings, request early, itemized estimates for each property you are considering:
- A Loan Estimate from your lender and a preliminary title or settlement estimate
- Documentary fee amounts and what they are based on (purchase price and loan amount)
- County recording fees, which are separate from the documentary fee
- HOA or COA charges such as transfer fees, resale certificate, capital contributions, estoppel or admin fees, and any move-in fees
- Any building or municipality charges, including special assessments
Use a simple additive comparison for each unit: purchase price + estimated documentary fee(s) + recording fees + HOA transfer and resale fees + lender and title charges. That gives you a clear “closing cost delta” you can use to compare buildings.
LoDo examples you can model
Here are straightforward scenarios using the $1 per $1,000 illustration. Confirm the current rate and rounding with your title company.
Unit A — purchase price $500,000, financing $400,000:
- Documentary fee on deed about $500
- Documentary fee on mortgage about $400
- Combined documentary fees about $900, plus county recording fees and any HOA transfer or resale fees
Unit B — purchase price $800,000, financing $640,000:
- Documentary fee on deed about $800
- Documentary fee on mortgage about $640
- Combined documentary fees about $1,440, plus county recording fees and any HOA charges
If you are purchasing with cash, only the deed documentary fee typically applies. That reduces the documentary fee portion of your closing costs, though you will still have county recording fees and any HOA-related charges to plan for.
Steps to avoid surprises
Use this checklist to keep your closing costs predictable:
- Ask for itemized estimates early. Request a lender Loan Estimate and a preliminary title settlement statement for each unit you are serious about.
- Confirm the documentary fee math. Ask how the fee is computed on both the deed and mortgage and how partial $1,000 amounts are treated.
- Get the HOA resale package. Review transfer fees, move-in deposits, and any pending assessments that could affect your total due at closing.
- Review who pays in the contract. Make sure the purchase agreement clearly allocates deed and mortgage recording and documentary charges.
- Request prior statements when possible. If the seller has a previous closing statement, it can provide insight into building-level costs.
- Recheck the Closing Disclosure. You will receive it at least three business days before closing. Verify the “Government recording and transfer charges” section and flag questions right away.
Special cases and common wrinkles
- Exempt transfers. Certain transactions can be exempt from the documentary fee. Examples include transfers with no consideration or transfers to or from specific entities or trusts as defined by statute. Your title company or the Denver County Clerk can confirm if an exemption applies to your situation.
- Multiple documents. Each qualifying recorded document can generate its own charge. If your loan package includes additional security instruments, ask how they will be treated.
- Refinances. In a refinance, the documentary fee usually applies to the new mortgage. The payoff of the old mortgage involves separate recording actions that may not incur a documentary fee if no consideration is shown.
- Rounding differences. Title and county practices on rounding partial $1,000 increments can vary. The title company’s computation method will determine your final amount.
- Contract clarity. If the contract does not assign who pays specific recording and transfer costs, it can become a last-minute negotiation. Ensure your agreement is explicit to prevent confusion.
What to do next
If you are comparing LoDo buildings, treat the documentary fee as one piece of your total closing cost picture. Ask for itemized estimates, confirm the fee math for both deed and mortgage, and review HOA transfer and resale fees as early as possible. A side-by-side worksheet makes choices clear and helps you negotiate from a position of confidence.
Want help pulling clean estimates, reviewing HOA packages, and lining up exact figures with your title team? Reach out to the LoDo-savvy brokers at Luxe Realty. Our locally rooted, bilingual team can walk you through your options, explain tradeoffs in plain language, and keep your closing smooth.
FAQs
What is the Colorado documentary fee on a LoDo condo purchase?
- It is a state recording-related charge applied when your deed and, if financed, your mortgage are recorded with the county clerk, separate from county recording and HOA fees.
How is the documentary fee calculated in Denver County?
- It is commonly estimated as a small dollar amount per $1,000 of consideration on the recorded document; confirm the current rate and rounding with your title company or the Denver County Clerk.
Who usually pays the deed documentary fee in Denver transactions?
- Payment is negotiable by contract; the mortgage documentary fee is typically paid by the borrower, while the deed fee may be paid by either party depending on the agreement.
Where will the documentary fee appear on my Closing Disclosure?
- It typically shows under “Government recording and transfer charges,” often itemized as separate deed and mortgage documentary fees alongside county recording fees.
Is the documentary fee the same as an HOA transfer or resale fee?
- No, the documentary fee is a state charge for recording; HOA transfer and resale fees are charged by the association and can vary widely by building.
If I pay cash for a LoDo condo, do I still pay a documentary fee?
- Yes, you should expect the deed documentary fee; without a mortgage there is no mortgage documentary fee, which lowers the total documentary fee amount.
