State guide

Buying or Selling a Home in Colorado: What You Need to Know

Colorado is a title-company closing state where most home sales finish at a title company instead of a lawyer's office, and the state Real Estate Commission promulgates the standard forms everyone uses.

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TL;DR

Colorado is a title-company closing state where most home sales finish at a title company instead of a lawyer's office, and the state Real Estate Commission promulgates the standard forms everyone uses. By default your agent is a neutral "transaction broker" unless you sign a written single-agency agreement that makes them your fiduciary. Sellers have to fill out a detailed property disclosure plus specific written disclosures about the water source, mineral rights, and any known meth contamination, and after the NAR settlement buyers must sign a written agreement with their agent before touring a home.

10 things every Colorado buyer or seller should know

  • Colorado's default brokerage relationship is "transaction broker" — a neutral middleman who owes you specific statutory duties (presenting offers, disclosing known adverse facts, accounting for money) but not the loyalty and confidentiality of a fiduciary. To get a true single agent representing only you, you have to sign a written single-agency agreement.

  • The Colorado Real Estate Commission promulgates mandatory forms — including the Contract to Buy and Sell Real Estate and the Seller's Property Disclosure — and licensees must use them as written for residential deals. That means most of the paperwork you sign in Colorado is standardized statewide, not custom-drafted.

  • Colorado closings are typically run by a title insurance company, not an attorney. The title company performs the title search, issues title insurance, holds earnest money, prepares the closing statements, and disburses funds — Colorado law does not require an attorney to be involved in a residential sale.

  • Colorado has no state real estate transfer tax. The only state-level fee at recording is a documentary fee of $0.01 per $100 of the purchase price — about $50 on a $500,000 home — which is paid to the county clerk when the deed is recorded.

  • After the NAR settlement that took effect August 17, 2024, any Colorado broker who belongs to an MLS subject to the settlement (including REColorado and IRES) must sign a written buyer-brokerage agreement with you before showing you a home, in person or virtually. That agreement has to state the broker's compensation as a specific dollar amount or specific percentage — not an open-ended "whatever the seller offers."

  • Colorado sellers must complete the Commission's Seller's Property Disclosure (SPD), which covers structural conditions, mechanical systems, environmental hazards, water and sewer, HOA status, legal issues, and any known defects. Sellers fill it out to the best of their actual knowledge — but knowingly hiding a material defect can still expose them to fraud or misrepresentation claims under Colorado case law.

  • Colorado law requires sellers to give a written source-of-water disclosure before or at contract signing, identifying whether the home is on a municipal system, a well, a water district, a cistern, a shared well, or a surface water right. For well-served homes the disclosure also flags the permit type, which legally limits what the water can be used for (drinking, irrigation, livestock, etc.).

  • Fair housing protection in Colorado is broader than federal law. On top of the federal Fair Housing Act's classes (race, color, national origin, religion, sex, familial status, disability), the Colorado Anti-Discrimination Act adds ancestry, creed, marital status, sexual orientation, gender identity, and gender expression — and many Colorado cities (including Denver and Boulder) also prohibit discrimination based on source of income such as housing vouchers.

  • Buying a condo, townhome, or other common-interest community unit in Colorado triggers a resale disclosure package under the Colorado Common Interest Ownership Act (CCIOA). Before closing, the HOA or its manager must give you the declaration, bylaws, rules, current budget, year-end financials, any pending special assessments, outstanding violations on the unit, and recent meeting minutes — read them before your inspection and review deadlines pass.

  • Colorado requires extra environmental and ownership disclosures that surprise out-of-state buyers: severed mineral rights (someone else may own the oil, gas, or minerals under the property and have the right to enter and develop them) are flagged through the title commitment, and any known prior methamphetamine contamination must be disclosed in writing. Colorado also has some of the highest radon levels in the country, so radon testing during inspections is strongly recommended.

The guides

Common questions

Do I need to hire a real estate attorney to buy or sell a home in Colorado?
No. Colorado is a title-company closing state, and the vast majority of residential transactions close at a title company without any attorney involved. You're free to hire a real estate attorney for advice or contract review if you want extra protection, but it isn't required by law.
Does my real estate agent in Colorado actually represent me?
Not unless you sign a written single-agency agreement. By Colorado statute, every licensee defaults to a "transaction broker" — a neutral facilitator who owes you defined duties like presenting offers and disclosing known property defects, but not the loyalty, obedience, and confidentiality you'd get from a true fiduciary agent. If you want full representation, ask for and sign a single-agency contract.
Do Colorado buyers have to sign an agreement with an agent before looking at homes?
Yes, if the agent belongs to an MLS that joined the NAR settlement, which covers REColorado, IRES, and the other major Colorado MLSs. Since August 17, 2024, the broker must have a signed written buyer-brokerage agreement with you — stating their compensation as a specific dollar amount or percentage — before any home tour, whether in person or virtual.
Who pays the buyer's agent in Colorado after the NAR settlement?
It's now openly negotiated. The seller can still agree to pay the buyer's agent in the Contract to Buy and Sell, the buyer can pay their agent directly out of pocket, or the seller can offer a closing-cost concession that the buyer applies to their agent's compensation. What changed is that MLS listings can no longer publish or advertise an offer of buyer-broker pay — those offers have to happen outside the MLS.
What does a Colorado seller have to disclose about the home?
Sellers must complete the Commission-approved Seller's Property Disclosure (SPD), which covers structural and mechanical conditions, environmental hazards, water and sewer, HOA matters, and any known defects. Colorado layers on specific statutory disclosures too — the property's source of water, any known prior methamphetamine contamination, and (through the title commitment) any severed mineral rights. Knowingly hiding a material defect can still create fraud liability even after you sign.
How much does Colorado tax a home sale at closing?
Very little at the state level. Colorado charges only a documentary fee of $0.01 per $100 of the purchase price when the deed is recorded — about $50 on a $500,000 home — and does not impose a separate state real estate transfer tax. You may still owe federal capital gains tax on your profit and you'll pay county recording and title fees at closing.
What is earnest money and where is it held in a Colorado sale?
Earnest money is a good-faith deposit a buyer puts down with the offer to show they're serious about the contract. In Colorado, it's most often held by the title company in a trust account rather than the listing brokerage. When a brokerage does hold the money, Colorado's strict trust-account rules forbid mixing it with the broker's own funds and treat any commingling or misuse as a serious license violation.
I'm buying a condo or townhome in Colorado — what extra documents will I see?
Colorado's Common Interest Ownership Act (CCIOA) requires the HOA or its manager to deliver a resale package before closing on any unit in a common-interest community. That package includes the declaration, bylaws, rules and regulations, current operating budget, year-end financial statement, any pending special assessments, outstanding violations against the unit, and recent meeting minutes. Read all of it before your inspection and review deadlines expire — that's your window to walk away if something there is a deal-breaker.
Is housing discrimination law in Colorado the same as the federal Fair Housing Act?
No — Colorado goes further than federal law. The Colorado Anti-Discrimination Act adds ancestry, creed, marital status, sexual orientation, gender identity, and gender expression to the federally protected classes of race, color, national origin, religion, sex, familial status, and disability. Many Colorado cities (Denver and Boulder among them) also prohibit refusing housing based on source of income, such as Section 8 vouchers.
I'm selling a Colorado home but I live in another state — will money be withheld at closing?
Yes, in most cases. Colorado requires the closing agent (usually the title company) to withhold 2% of the gross sales price from nonresident sellers under C.R.S. §39-22-604.5 to cover Colorado income tax on any gain. Separately, if you are a non-U.S. person, the federal FIRPTA law layers on its own withholding — generally 15% of the gross purchase price, with reduced rates for lower-priced primary residences.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.