Town Transfer Fees
In Summit County Colorado, transfer fees on the sale of property are relatively common. Breckenridge, Frisco, and portions of Copper Mountain and Keystone all have transfer fees that must be paid at Closing. Private transfer fees have been rare but a building permit fee could be changing that for properties in the county. The town the property resides in typically imposes the transfer fee. That fee is based on the sale price and, depending on the location can be 1-2% of the purchase price. Whether the buyer or seller pays the transfer fee should be negotiated in the purchase contract. Because this fee is based on the location of the property, whether or not a property has one is relatively easy to determine. The private transfer fee is not so obvious and can be more difficult to know about ahead of time.
Private Transfer Fees
In 2006 Summit County voters approved the addition of the Affordable Housing Development Impact Fee to be added to the cost of building permits. The amount of the fee varies based on the size of the home. If the property is located in the county, not a specific town, the county gives the option to defer payment of the Impact Fee by recording a private transfer fee due upon all subsequent sales of the property. The initial sale is exempt. The private transfer fee is smaller than the transfer fees imposed by the towns, only one third of one percent.
Initially approximately 60% of developers were opting for the private transfer fee, currently it has dropped to about 50% of applicants. The economic downturn really put a damper on new construction. As our economy improves and more and more building permits are issued, and these properties begin changing hands for the second time, the private transfer fee may become more common in our communities.
Homeowner Association Transfer Fees
Less significant transfer fees include those imposed by homeowners associations and the accountants that handle the books. Closing charges can include a $100-$200 fee imposed every time each property in the HOA changes hands. That’s their fee for calculating charges due and supplying that information to the title company. There could be a working capital contribution due from the buyer for three months worth of HOA dues. That contribution may or may not be refundable when they sell. Closing is an opportune time for both municipalities and individual companies to collect additional revenue. In order to transfer property, the title company ensures all debts have been paid.
Transfer fees are a reality in real estate sales and it appears they will continue to be in the future.
More information for Summit County area home buyers available on our Buyer page.
Originally posted 11/26/2013. Reviewed and updated for accuracy 11/2/2018
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