Closing Costs And Transfer Taxes In Telluride

Ever wonder what you will actually pay at the closing table in Telluride or Mountain Village? You are not alone. Between lender fees, title work, HOA charges, and local transfer taxes, the totals can feel opaque until you see a draft settlement statement. This guide breaks down typical buyer and seller costs, how local transfer taxes and fees work, and how to confirm exact amounts before you sign. Let’s dive in.

Closing costs in Telluride: the basics

Closing costs are the one-time fees due when ownership changes hands. Some are tied to your loan, some are required by the county or municipality, and others are specific to the property or HOA. The purchase contract determines who pays what, and local custom also plays a role.

In Colorado there is no statewide real estate transfer tax. Individual towns and counties may impose their own transfer taxes or transaction fees, and recording fees are set at the county level. Always confirm amounts with the town where the property sits, the San Miguel County Clerk & Recorder, and your title company.

Buyer closing costs: line items to expect

If you are purchasing in cash, your list is shorter. If you are financing, plan for lender-driven items along with title and recording costs. Common buyer-side items include:

• Loan-related charges: origination and points, application, underwriting, credit report, and processing. These are lender-specific.
• Appraisal: typically paid by the buyer if there is a loan.
• Title insurance: the lender’s policy is usually required when you finance. An owner’s policy is optional but common. Premiums are based on price.
• Escrow/closing fee: charged by the title or escrow company for facilitating the closing.
• Recording and county clerk fees: to record the deed and any deed of trust.
• Property tax prorations: you may reimburse the seller for taxes paid in advance, depending on timing.
• Homeowner’s insurance: often the first year’s premium is paid at closing.
• HOA fees: transfer or estoppel fees and any document charges, depending on the association and your contract.
• Prepaid interest and escrow deposits: if you finance, lenders often collect prepaid interest and set up reserves for taxes and insurance.
• Inspections and surveys: pest, general inspections, or surveys as negotiated.
• Utility or other prorations: deposits or adjustments for services, if applicable.

Seller closing costs: what to plan for

Seller expenses vary based on your property, HOA, and contract terms. Common seller-side items include:

• Real estate broker commission: the largest cost in most transactions, paid from seller proceeds unless otherwise agreed.
• Loan payoffs and liens: plus any reconveyance or release fees.
• Title-related fees: to issue the owner’s policy or clear title matters.
• Transfer taxes or municipal fees: if applicable where the property is located.
• Prorated property taxes and HOA dues: plus any unpaid assessments that must be settled.
• Seller closing/settlement fee: sometimes split with the buyer by local custom.
• Repairs or credits: negotiated during inspection.
• Recording/release charges: to record lien releases or other documents.

Transfer taxes and local fees

Real estate transfer taxes

Colorado does not impose a statewide transfer tax, but some municipalities do. In the Telluride area, you should confirm whether a municipal transfer or conveyance tax applies based on the property’s location and current town rules. For definitive guidance, review the Town of Telluride’s resources and contact the finance or clerk’s office through the Town of Telluride official site. If the property is in Mountain Village, consult the Town of Mountain Village finance or treasurer pages for current requirements and payer responsibilities.

Who pays a local transfer tax is sometimes set by ordinance and sometimes handled by custom or negotiation. In many resort markets the seller often pays, but you should confirm for your specific address and contract.

County recording and documentary fees

San Miguel County charges recording fees for deeds and deeds of trust. These are modest flat fees. Your title company will collect and remit them at closing. To confirm current schedules or document requirements, visit the San Miguel County Clerk & Recorder.

HOA transfer and estoppel fees

Many properties in Telluride and Mountain Village sit within an HOA or condo association. Associations often charge a one-time transfer or administration fee and an estoppel letter fee to verify dues status and any special assessments. Amounts vary by association and can range from a few hundred dollars to more for complex regimes. Payment is negotiable by contract, so confirm with your HOA and title company.

Special assessments and impact fees

Some municipalities or improvement districts require impact or affordable housing mitigation fees tied to development or, in certain circumstances, at transfer. These are not universal and change over time. Confirm applicable fees with the town’s finance or planning department for the exact property through the Town of Telluride or Town of Mountain Village websites.

Who pays what in practice

While the contract controls, these general customs are common in many resort markets. Always confirm local practice for the specific town and HOA.

• Transfer or conveyance tax: often seller-paid in resort communities, but it can be split or negotiated.
• County recording/documentary fees: often paid by the buyer or split.
• HOA transfer/estoppel: frequently seller-paid, but negotiable.
• Owner’s title insurance: sometimes seller-paid in Western markets, though customs vary by town and by deal.
• Commissions: typically seller-paid unless negotiated otherwise.
• Lender-related fees: normally buyer-paid when the buyer finances.

To avoid surprises, ask your agent and title officer for a draft settlement statement early in the process.

How much to budget: realistic ranges

Actual totals depend on price, financing, HOA rules, and municipal requirements. These ranges are common in Colorado and are provided as estimates. Your title company and lender will confirm exact figures.

• Buyer totals: commonly around 2% to 5% of the purchase price, excluding the down payment. Higher-end properties or complex loans can push costs higher.
• Seller totals: often 6% to 9% of the sales price when you include commission plus title, transfer taxes if applicable, and closing fees. In resort towns with municipal transfer taxes, totals can be higher.

Typical line-item ranges:

• Realtor commission: commonly 5% to 6% of the sales price.
• Owner’s title insurance: roughly 0.5% to 1.0% of price, depending on insurer schedules.
• Lender origination or points: 0% to 1% or more of the loan amount, lender-specific.
• Appraisal: about $500 to $2,000 depending on size and complexity.
• Escrow or settlement fee: about $300 to $1,000.
• Recording/documentary fees: usually tens to a few hundred dollars.
• HOA transfer/estoppel: typically $200 to $600, sometimes more in complex associations.
• Municipal transfer taxes or fees: locally determined and can be percentage-based or flat. Confirm with the town.

Illustrative example for a $1,000,000 sale:

• Seller: commission of $60,000 at 6%, title and closing fees of roughly $3,000 to $10,000, plus any municipal transfer tax if applicable, loan payoffs, and prorations.
• Buyer: loan fees, appraisal, and title-related items could total about $15,000 to $40,000, plus prepaid insurance and escrow deposits of roughly $3,000 to $10,000 and any HOA transfer or estoppel fee.

These figures are examples only. Your lender and title company will produce official disclosures with the exact amounts.

Telluride vs Mountain Village: key differences to check

Telluride and Mountain Village are separate municipalities within San Miguel County. Each maintains its own municipal code and fee schedule. Do not assume rules are identical.

• Municipal transfer taxes: verify whether a tax applies in the specific town and who pays it. Start with the Town of Telluride or the Town of Mountain Village finance pages.
• HOA environment: Mountain Village features a high concentration of condo and resort HOAs that may have detailed transfer procedures and fees. Obtain the current HOA transfer and estoppel schedule early.
• Special districts: determine if the property sits within any improvement or special district that levies fees at transfer.
• Resort-use considerations: if the home is used as a short-term rental, confirm compliance items, registration status, and any unpaid lodging taxes that could affect prorations.

Confirm your exact numbers: a simple checklist

• Ask your agent for a preliminary settlement estimate or seller net sheet.
• Request a written estimate from your title or escrow company. Your lender will also provide a Loan Estimate and, later, a Closing Disclosure if you finance.
• Confirm municipal transfer taxes or fees with the town where the property is located through the Town of Telluride or Town of Mountain Village websites.
• Verify county recording fees and property tax status with the San Miguel County Clerk & Recorder and Treasurer.
• Ask the HOA for its transfer and estoppel fee schedule and whether any special assessments are pending.
• Discuss with your lender which buyer fees can be covered by seller concessions or financed into the loan, if permitted.
• For complex situations, consult a local real estate attorney. You can also review state-level guidance through the Colorado Division of Real Estate.

Partner with a local advisor

Closing costs in Telluride and Mountain Village are manageable when you know what to expect and confirm each line item early. A seasoned local advisor will help you align your contract terms, coordinate with the title company, and verify municipal and HOA requirements so there are no last-minute surprises.

If you are planning a purchase or sale and want a clear, custom estimate for your address, reach out for concierge guidance. Connect with Matthew Hintermeister to Request a Private Consultation and receive a tailored closing plan that reflects your goals and timeline.

FAQs

Who usually pays the real estate transfer tax in Telluride-area sales?

• It varies by municipality and contract. In many resort markets the seller often pays, but payer responsibility can be split or negotiated. Confirm with your title company and the town’s finance office.

How large are transfer taxes in the Town of Telluride or Mountain Village?

• Rates and rules are set locally and can change. Verify current details with the Town of Telluride or the Town of Mountain Village finance pages before you finalize your budget.

Can a buyer roll closing costs into a mortgage in Colorado?

• Some lender fees can be financed or covered with seller concessions if the loan program allows. Transfer taxes and seller obligations are not financed by the buyer unless negotiated through concessions. Ask your lender for specifics.

Who pays HOA transfer and estoppel fees in San Miguel County?

• Custom varies by HOA and contract. Often the seller pays the estoppel, but it is negotiable. Request the HOA’s current fee schedule and confirm who pays in your purchase agreement.

Are there extra closing considerations for vacation rental properties?

• Possibly. Short-term rental registration, lodging tax compliance, or special assessments can affect prorations and closing steps. Confirm requirements with the municipality and your HOA well before closing.

Where can I confirm county recording fees and deed requirements?

• The San Miguel County Clerk & Recorder provides current recording fees, forms, and instructions. Your title company will also include these fees on your settlement statement.