Closing costs can feel like a moving target. If you are buying or selling in Durango or anywhere in La Plata County, you want a clear picture of who pays what so there are no surprises on closing day. You also want to know what is negotiable and what is set by local custom.
In this guide, you will learn how Colorado closings typically work, which costs buyers and sellers usually cover in Durango, and how to plan your budget with confidence. You will also get practical checklists, negotiation tips, and red flags to watch. Let’s dive in.
How Colorado closings work
In Colorado, a title company or settlement agent typically prepares the closing statement and handles recording and funds disbursement. You and the other party each receive a final settlement statement that lists every line item and shows how taxes and dues are prorated as of the closing date.
In La Plata County, county recording fees, procedures, and certain administrative charges are set locally and updated periodically. Many Durango transactions also include HOA or condo transfer fees, plus county recording fees for documents like deeds and deeds of trust. Always confirm current schedules with the La Plata County Recorder and Treasurer or your title company.
Buyer closing costs in Durango
If you are financing, your closing costs are generally higher than a cash purchase because of lender-related fees and required reserves. As a broad guideline, many buyers estimate total closing costs at about 2 to 5 percent of the purchase price, not including the down payment. Your exact number depends on your loan type, lender fees, and local rates.
Common buyer-paid items
- Loan origination and lender fees - Charges for processing, underwriting, and application.
- Discount points - Optional upfront cost you can pay to lower your interest rate.
- Appraisal fee - Ordered by the lender to verify value for the loan.
- Credit report fee - Used in underwriting to verify your credit profile.
- Lender-required inspections - Examples include pest or septic if required by the lender.
- Underwriting and processing - Administrative costs charged by the lender.
- Lender’s title insurance policy - Protects the lender’s interest when you have a mortgage.
- Buyer’s share of escrow or settlement fee - Often split, but it depends on local custom and negotiation.
- Recording fees for the deed of trust - Recording the mortgage documents when financing.
- Prepaid mortgage interest - Per-diem interest from closing day until your first payment.
- Initial escrow deposits - Lender-required reserves for property taxes and homeowners insurance.
- Homeowners insurance premium - Typically the first year paid at or before closing.
- PMI upfront premium - If required for down payments under 20 percent.
- Survey or survey review - If you or your lender requests an updated survey.
- Home inspections - General inspection plus any specialty inspections like radon, well water, sewer, or septic.
- HOA documents and fees - Resale certificates, estoppel letters, or transfer fees, depending on HOA rules and negotiation.
What buyers might split or negotiate
- Settlement or closing fee - Many title companies split it. Check your contract.
- HOA document and transfer charges - Some are buyer costs, some are split, and some are seller costs depending on HOA policy.
- Seller concessions - You can request the seller to cover certain closing costs, subject to lender limits for your loan type.
Durango buyer checklist
- Get a Loan Estimate early and compare lender fees.
- Budget for inspections, appraisal, and a survey if needed.
- Plan for your first-year insurance premium and initial escrow deposits if your lender requires them.
- Ask for your Closing Disclosure at least 3 business days before closing and compare it to your Loan Estimate.
- Confirm any seller concessions in your contract and which costs they cover.
- Verify HOA resale package fees and timelines if you are buying into a condo or subdivision.
- Check with the La Plata County Recorder and Treasurer or your title company for current recording and transfer fee schedules.
Seller closing costs in Durango
If you are selling, the largest cost is often commission, followed by payoff-related items. In many Colorado transactions, sellers customarily pay for the owner’s title insurance policy as part of delivering marketable title, although this can be negotiated.
Common seller-paid items
- Real estate commission - Negotiated in your listing agreement and commonly the largest seller expense.
- Owner’s title insurance policy - Customary in many Colorado deals and paid once at closing.
- Payoff of existing mortgages and liens - Includes payoff statements and any reconveyance charges.
- Prorated property taxes - You owe your share up to the closing date. Colorado taxes are typically handled in arrears.
- Seller’s share of settlement fee - May be split or assigned depending on local practice.
- HOA transfer or administrative fees - Often a seller expense, and you must supply required resale documents.
- Repairs or credits - Any repairs you agreed to or seller-paid closing cost credits in the contract.
- Recording fees for the deed - Local filing charges that may fall to the seller or be split.
- Transfer or documentary fees where applicable - Confirm local practice and any county requirements.
What sellers might split or negotiate
- Settlement fees - Often split with the buyer.
- HOA administrative costs - Some HOAs allocate fees to sellers, some split, so review the governing documents.
- Buyer closing cost credits - Concessions can help a buyer close, but check the buyer’s lender limits.
Durango seller checklist
- Negotiate commission structure with your listing agent and plan for loan or lien payoffs from proceeds.
- Order a pre-listing title commitment to identify encumbrances early.
- Request HOA or condo resale documents early and budget for any transfer or estoppel fees.
- Be ready to provide tax information and review tax prorations on the settlement statement.
- Understand owner’s title insurance custom in Colorado and include it in your net proceeds planning.
- If offering concessions, document exact amounts or caps in the contract.
Title insurance in Colorado
Colorado custom often splits title coverage by policy type. The buyer typically pays for the lender’s title policy if there is a mortgage. The seller commonly pays for the owner’s title policy, which protects the buyer’s ownership interest. Local practice can vary and both are negotiable, so confirm the allocation in your purchase contract and with your title company.
Taxes, proration, and recording in La Plata County
Property taxes are usually prorated as of the closing date. If taxes are paid in arrears, the seller will generally credit the buyer for the seller’s share accrued during that year. HOA dues are also commonly prorated.
La Plata County sets its own recording fees and procedures for deeds and deeds of trust. Exact amounts change over time, so confirm the current schedule with county offices or your settlement agent.
Sample closing statement lineup
Use this neutral lineup as a quick reference. Your final statement may assign items differently based on contract terms and local custom.
Buyer pays:
- Loan fees - origination and points
- Appraisal, credit report, and underwriting fees
- Lender’s title insurance policy
- Recording fees for the mortgage
- Inspection and survey fees
- Prepaid interest, homeowners insurance, and escrow deposits
- HOA estoppel or document fees where applicable
Seller pays:
- Real estate commission
- Owner’s title insurance policy
- Payoff of existing loans and liens
- Prorated property taxes through the closing date
- HOA transfer or administrative fees if required
- Recording fees for the deed if allocated to seller
- Agreed seller credits or repairs
Note: Nearly every item is negotiable somewhere. Your title company will provide the final closing statement that controls.
Negotiation tips that work in Durango
- Ask for an itemized Closing Disclosure at least 3 business days before closing and compare it to your Loan Estimate.
- If you are selling, order a preliminary title commitment early to identify and clear liens or encumbrances before you go under contract.
- Request a fee estimate from a local title company early. Local teams handle Durango transactions daily and know La Plata County and HOA nuances.
- Use market conditions to guide who pays what. In a buyer’s market, sellers may agree to concessions. In a seller’s market, buyers may carry more costs.
Red flags to watch
- Unexplained differences between your Loan Estimate and Closing Disclosure.
- Unpaid taxes, HOA dues, or judgments appearing on the title commitment.
- Delays from missing or late HOA resale documents, especially in condo and resort communities.
- Large liens or mortgages without a clear payoff plan.
How a local advisor helps you net more
A Durango transaction can involve county-specific fees, HOA rules, and title practices that affect your bottom line. A hands-on local advisor helps you anticipate costs, negotiate who pays which line items, and avoid surprise repairs or escrow issues. With technical insight from the inspection phase through final proration checks, you reduce risk and close with confidence.
If you want a precise Durango closing cost estimate for your situation, a local title company and your lender are essential. For strategy, negotiation, and a clean path to closing, partner with a responsive advisor who does this every day in La Plata County.
Ready to plan your budget and move forward with clarity? Connect with Jeremiah Aukerman - eXp Realty Luxury for local guidance and a smooth, well-orchestrated closing.
FAQs
Who pays owner’s and lender’s title insurance in Colorado?
- In many Colorado transactions, the seller customarily pays for the owner’s title policy, while the buyer pays for the lender’s policy. Both are negotiable and should be confirmed in the contract.
How are property taxes handled at a Durango closing?
- Taxes are typically prorated as of the closing date. If taxes are paid in arrears, the seller usually owes a prorated share to the buyer at closing for the time the seller owned the property that year.
What should a Durango buyer budget for closing costs?
- A common estimate is 2 to 5 percent of the purchase price for closing costs, excluding the down payment. Lender-required escrows, prepaid items, and loan type can move your number up or down.
Can a seller pay some of my buyer closing costs?
- Yes. Sellers can offer concessions to cover certain buyer closing costs, subject to lender limits based on the loan program. Concessions must be written into the contract.
Which local fees should Durango condo buyers and sellers expect?
- Many HOAs require resale certificates, estoppel letters, or transfer fees. Allocation varies by HOA rules and negotiation, so verify costs and timelines early.
Who prepares the closing statement in La Plata County?
- A title company or settlement agent typically prepares the closing statement, manages recording, and disburses funds. Both parties receive a detailed statement before closing.
When will I see my final numbers before closing?
- For most financed purchases, you should receive a Closing Disclosure at least 3 business days before closing. The settlement agent will also provide a final closing statement that reflects the exact proration and payoffs.
