Denver metro area

Denver, CO

Colorado is the rare state where ADU law overrides HOA bans, and Denver now allows an ADU in every residential zone with no owner-occupancy rule. Transfer costs are tiny, while hail and a deadline-driven contract are what catch buyers out.

💡 Upside tip

Treat an ADU as a real option on almost any Denver single-family lot: the city allows one in all residential zones, and state law HB24-1152 makes HOA bans unenforceable. Then check the roof age and whether it is impact-resistant, because hail drives insurance cost, and track every contract objection deadline.

Offers & competition

The state-mandated Colorado contract is deadline-driven, with separate deadlines for inspection objection, resolution, loan, appraisal, title and due diligence. Missing a deadline generally waives that objection right.

Closing & who pays

Title companies run closings; no attorney is required. Colorado is a disclosure state, so the sale price is recorded on the Real Property Transfer Declaration and visible in assessor records.

Transfer taxes

Colorado charges only a documentary fee of $0.01 per $100 (0.01%, about $50 on a $500,000 home), and Denver adds no city transfer tax.

Seller disclosures

Sellers use the Colorado Real Estate Commission's Seller's Property Disclosure form, and state law requires specific disclosures such as special districts and their taxes, the source of drinking water, and whether the home is in a wildfire-risk area.

What you can build

State law HB24-1152 requires metro jurisdictions to allow one ADU by right wherever single-family homes are allowed, bans owner-occupancy rules and most parking requirements, and makes HOA bans on ADUs unenforceable. Denver complied in October 2024 by allowing ADUs in all residential zones; detached ADUs have been allowed at up to about 1.5 stories and 650 to 1,000 sq ft depending on lot size.

Permits & records

Permit history is in Denver's e-permits system and property records in the city's assessor search. Residential review typically takes months rather than weeks; check the city's permit portal for current timelines.

Property tax

For 2026 the residential assessment rate is 7.05% for schools and 6.8% for local governments, with 10% of value up to $700,000 (at most $70,000) excluded from the local calculation. Colorado reassesses every odd year, and Denver's effective rate is roughly 0.5% to 0.6%.

Rent rules

Colorado has no statewide rent cap (only California, Oregon and Washington do). State law HB24-1007 bars local occupancy limits based on family relationship, which matters for rentals with unrelated roommates.

Key risks

The Front Range is among the most hail-prone areas in the country, insurers increasingly use percentage wind and hail deductibles, and roof age and impact-resistant (Class 4) material strongly affect premiums. Wildfire is also a concern after the 2021 Marshall Fire destroyed about 1,000 homes in Boulder County.

⚠ Still verifying

Denver's final ADU size and height limits after the 2024 changes were not fetched. The status of 2025 Colorado housing bills, the home-rule lawsuits by six suburbs against HB24-1313 and HB24-1304, and Denver's possible move off its current permit system are unconfirmed. The documentary fee, contract structure, permit times and tax rates partly come from background knowledge.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.