Buying in Mountain Village often means you will see a line item at closing called a Real Estate Transfer Assessment. If you are comparing a ski-in/ski-out condo to a similar home in a nearby area, this charge can be a meaningful difference. You want clarity on what it is, when it applies, and how it affects your negotiations and budget. Below, you will find a practical guide that explains the mechanics, the financial impact, and the due diligence steps you should take before you write an offer. Let’s dive in.
What RETA is in Mountain Village
A Real Estate Transfer Assessment is a municipal charge collected when a property interest changes hands. In Mountain Village, it is assessed on transfers within the town’s municipal boundaries and helps fund town uses authorized by local ordinance or ballot measure. Properties in neighboring jurisdictions, such as the Town of Telluride or unincorporated San Miguel County, follow different rules. Always confirm the property’s legal jurisdiction before you apply Mountain Village’s RETA.
RETA is established by local ordinance. The town’s code and recorded documents set the rules, rates, and exemptions. Because municipal policies can change, you should not assume a fixed percentage or a standard list of exemptions. Verify the current RETA rate and any qualifying exemptions with the Town or your title company before closing.
When it applies
RETA typically applies to sales and other transfers of real property interests. Common triggers include a deed conveying ownership or certain entity transfers. Many municipalities carve out exemptions for things like gifts, inheritance, transfers to government entities, or foreclosure-related deeds, but each exemption depends on the town’s ordinance and documentation.
The details matter. Specific eligibility, paperwork, and timing for exemptions are set locally and can evolve. If your situation involves affiliated entities, estate planning, or non-standard conveyances, confirm the process with the Town and your title/escrow officer early in the deal timeline.
Who pays and how it is collected
Who pays is a contract term. In some transactions buyers pay, in others sellers pay, and sometimes the parties split the cost. Local custom can influence expectations, but the only binding rule is what you write into your contract. Ask your broker to make the responsibility explicit, and confirm the line item on the closing statement.
Collection is straightforward. The assessment is calculated at closing, shown as a closing cost, and remitted by the title or escrow company to the Town. Timing is tied to recording, so the amount typically must be satisfied for the deed to record.
How much to budget
RETA is generally calculated as a percentage of the purchase price or transferred value. Some ordinances use flat fees for certain conveyances or partial rates for fractional interests. The exact calculation, rounding, and base are defined by the municipal code. Do not rely on a rule of thumb. Confirm the current percentage and calculation method before you finalize your cash-to-close.
Here are simple hypothetical examples to show scale:
- Hypothetical A — 1.0% RETA: On a $2,500,000 condo, RETA would be $25,000.
- Hypothetical B — 1.5% RETA: On the same price, RETA would be $37,500.
That half-point difference equates to $12,500 on a $2.5 million purchase. In luxury transactions, this is material for both budgeting and negotiation. It can influence price strategy, seller credits, and your overall cash plan.
Other closing costs to consider
RETA is one piece of the closing-cost picture. You may also see county recording fees, any county transfer tax where applicable, HOA or condo transfer or administrative fees, and potential special district charges, such as water or fire assessments. Include these items in your buyer cost estimate or seller net sheet to avoid surprises.
Negotiation and deal strategy
Because the assessment is negotiable by party, your offer strategy should address it directly. If buyers customarily pay in a given market phase, you might adjust price or request a seller credit to offset. If sellers are covering RETA, build it into your net-proceeds calculation and list strategy. The key is to make the term explicit and align it with your pricing and concession plan.
Tax and financing considerations
Transfer assessments paid at purchase are typically not deductible as current expenses. In many cases they are capitalized into the buyer’s cost basis, which can affect future capital gains calculations. Sellers should also consult their tax advisor about treatment as a selling cost. Because tax rules can change, consult your CPA or tax attorney for current federal and state guidance.
On financing, lenders usually treat RETA as a closing cost. Whether you can roll costs into the loan depends on loan type and lender policy. Expect to show proof of funds for items that are not financed and confirm your lender’s approach early.
Mountain Village vs. neighboring jurisdictions
Jurisdiction is the first checkpoint. Mountain Village properties are subject to Mountain Village rules. A similar property in Telluride town limits or unincorporated San Miguel County may follow different transfer charges or none at all. When you compare two homes, add RETA to the Mountain Village option and include any other known transfer fees for the out-of-town alternative so you see a true cost-to-buy comparison.
Buyer due-diligence checklist
Confirm jurisdiction
- Verify the parcel is within the Town of Mountain Village boundaries using official maps or assessor records.
- Check if any adjacent town or county transfer assessments also apply.
Verify the current RETA rate and ordinance
- Obtain the current rate, calculation method, and exemption criteria from the Town or the Town Clerk.
- Ask what documentation is required for any exemption you believe applies.
Confirm who pays in the contract
- Specify buyer, seller, or split responsibility in your offer.
- Have your broker and title officer show the line item on the draft closing statement.
Coordinate with title/escrow
- Request the title company’s remittance steps and any forms needed for exemptions.
- Confirm timing so funds are available when the deed records.
Build accurate net sheets and budgets
- Add RETA to your cash-to-close if you are the paying party.
- For sellers, subtract RETA from net proceeds if you are covering it.
Confirm HOA and other transfer fees
- Ask about HOA transfer fees, condo administrative charges, and any amenity or service assessments that transfer.
Get tax advice
- Consult a CPA on basis treatment, deductibility, and reporting.
Work with an experienced local broker
- Use a Mountain Village advisor who understands current practice, custom, and municipal procedures.
Common scenarios for luxury buyers
- Ski-in/ski-out condos: High-dollar resale condos often involve precise budgeting for RETA, HOA transfer fees, and proration of dues. Clarify each item early so your cash plan is complete.
- Entity transfers and estate planning: If you are buying in or out of an entity, ask whether your transfer structure triggers RETA or qualifies for an exemption. Confirm documentation with the Town and title.
- Fractional interests: Some ordinances address fractional interests or partial ownership transfers differently. Verify the calculation base before you submit an offer.
Work with a trusted local advisor
A clear plan around RETA can save you time, money, and back-and-forth at closing. If you want discreet guidance, local insight, and careful execution, connect with Lars Carlson to review the current ordinance, run precise estimates, and align your negotiation strategy. Request a confidential consultation.
FAQs
What is Mountain Village’s Real Estate Transfer Assessment?
- It is a municipal charge collected at transfer on properties within Mountain Village, separate from county fees or HOA costs.
Does RETA apply to homes in Telluride or the county?
- No, RETA is specific to Mountain Village; other jurisdictions have their own rules, so confirm the property’s legal location first.
Who usually pays RETA in a Mountain Village deal?
- Responsibility is negotiated in the purchase contract; local custom can vary, so make it explicit and confirm on the closing statement.
Can RETA be negotiated or waived?
- You can negotiate which party pays; waiver only occurs if an ordinance exemption applies and is properly documented with the Town and title.
How is RETA calculated on a purchase?
- It is generally a percentage of the purchase price or transferred value, but you must verify the current rate and calculation rules with the Town or title.
Is RETA refundable or prorated after closing?
- RETA is a one-time transfer charge and is not prorated; refunds typically occur only if the transaction is voided or an exemption is later approved.
How does RETA affect my taxes as a buyer?
- Transfer assessments are typically not deductible as a current expense and are often capitalized into your cost basis; consult your CPA for specifics.
Will RETA affect my mortgage approval?
- Lenders treat RETA as a closing cost; whether it can be financed depends on loan type and lender policy, so confirm with your lender early.
