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Seller’s Closing Costs in Colorado

During negotiations, buyers and sellers decide who will pay for what. In Colorado, there’s general agreement as to who pays for certain items, although many items are often negotiable. Questions? Give us a call at 303-720-4809.

Broker Commission
Sellers pay a commission to the broker who represents them (the listing broker) and a commission to the broker who represents the buyer (the cooperating broker.)

Satisfaction of Liens
Sellers pay off their mortgage at closing with proceeds from the sale, unless the buyer assumes the seller’s loan (which is rare).

Recording Costs
Sellers want to provide a clear title for the buyer and generally pay for anything required to do so. Any documents that must be filed and recorded to produce a clear title – such as a loan payoff – are normally paid by the seller. Counties determine what to charge, but it’s normally $5 to $10 or more for the first page and $1 to $5 for each other page.

Owner’s Title Insurance
Usually, the seller pays for the owner’s title insurance policy premium. This policy protects the buyer against any claims made against the title subsequent to closing on the property. This can be negotiable.

FIRPTA and Colorado Withholding
The Foreign Investment in Real Property Tax Act (FIRPTA) requires 15% withholding of the gross sales price for non-resident sellers of real property owned in the U.S. to pay potential U.S. capital gains taxes. If a non-Colorado resident sells a property other than a primary residence, the title company withholds the lower of 2% or the entire net proceeds on any sale over $100,000 to pay potential Colorado taxes.