Homeowners Association Issues

Notice of HOA Transfer Fees

Some homeowners’ associations (“HOA”) are now charging the parties a transfer fee of up to $1,000 to facilitate the transfer.  Those fees are being charged through escrow and are generally a surprise to the buyer or seller, if they are not alerted to it first.  Such fees should only be imposed by the homeowners’ association, if there is authority to do so, such as included in the covenants, conditions and restrictions, By-Laws or minutes approved by the appropriate personnel at the HOA.  Because this is becoming a more frequent occurrence, agents should address this issue in the contract.  For example, include in Section 4 in the Residential Purchase Agreement stating which party is responsible for the fees associated with the HOA payoff.