As in every area, Summit County has some real estate related characteristics that could impact your buying decisions. These Summit County particulars may impact the area or neighborhood you choose to buy in, the price you are willing to pay or if a property is right for you. Because the impact can be significant, it’s important to know about them before you are under contract.
Many condo complexes have homeowner’s associations that restrict pets from living in the complex. Others allow owners to have pets but renters cannot. Some owners enjoy bringing their dog with them when they come to town. In general, Summit County is a dog friendly area. But if you buy a condo somewhere like River Run Village at Keystone Resort you wouldn’t be allowed to keep your dog in your condo.
Some areas in Summit County charge a fee when a property changes ownership. That fee is known as a transfer tax. It can range from 1-2% of the purchase price and can be paid to the town or resort. Who pays it is negotiable in the purchase contract. Buyers often take who is paying the tax into consideration when making their offer.
Private Transfer Tax
Beginning in 2012 the builder/developer is charged an additional fee when they apply for a permit. They have the option to waive paying the fee and instead impose a private transfer tax on the property. It’s a 1% transfer tax that is waived on the initial purchase of the home but every subsequent sale must pay.
Some properties in Summit County have a restriction on the deed for the property designating that property for a working resident of the county or town. Those are known as deed restricted properties. The restrictions vary from property to property. Some will dictate the owner must be a working resident, others will allow anyone to own it as long as a working resident lives there. Some have income limits for the owner. Sometimes there are appreciation caps allowing the property to appreciate no more than 2% or 5% per year. To buy a deed restricted property buyers have to be qualified with the Summit Housing Authority.
Working Capital Contribution
Many HOAs charge a working capital contribution when a property sells. Every HOA is different but here’s a typical example of one. At Closing, the buyer is required to pay the HOA a fee equal to three months worth of HOA dues. It does not count towards upcoming HOA dues but is a contribution to the working capital for the HOA. Sometimes that fee is refundable and you will get it back when you sell but generally it is not. In order to charge the fee it must be documented in the homeowner association documents.
Short Term Rental Restrictions and Requirements
Some HOAs do not allow short term rentals. Currently, many towns are imposing additional short term rental requirements. Owners that rent their properties have been required to collect sales tax and, in most areas, have a business license. Changes could include a local management company to handle complaints in less than one hour and a three strikes you’re out rule.
It’s important to know as many particulars as you can about the property you plan to purchase. If a Colorado Real Estate Commission contract is used, there is an opportunity to do your due diligence while under contract. With that said, knowing some of the particulars ahead of time is helpful.