What is the documentary (doc) fee in Colorado based on?

The documentary (doc) fee in Colorado is calculated based on the consideration or value of the property being transferred, specifically at a rate of $0.01 for every $100 of consideration over the initial $500. This means that the fee increases proportionally with the value of the transaction, making it reflective of the actual consideration involved.

This structure ensures that larger transactions incur higher fees, while smaller transactions maintain a minimal cost, as the first $500 of consideration is exempt from the fee calculation. This approach aligns with the state's intent to create an equitable system that adjusts based on transaction size rather than imposing a flat fee that could disproportionately affect smaller transactions.

Other options, such as a flat rate for all real property transfers or a fixed amount regardless of property value, do not account for the variability in property values and could lead to inequities in the application of the fee. Similarly, a percentage of the loan amount would misrepresent the actual value exchanged for the property, since the fee is tied to the property’s consideration in the transaction rather than financing terms.