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HOA/sub HOA

Hi Dennis,
Thank you for offering help re self management.

We have a “master” HOA and 3 “sub” HOA’s. Each sub has fewer than 50 units and are either condos or townhomes. VRE (the Master, all single family homes) charges the $400 allowed by law for disclosure fees. Are the “sub” HOA’s also able to charge $400 for their separate disclosure fees. The “sub” HOAs do send out their CCRs, bylaws, HOPA form, etc, also.
Thanks,
Dave

2 Responses

  1. DennisL

    Dave,
    By law any association with recorded covenants on the property that you own has the right to charge a transfer fee only if the covenant specifically authorizes that fee. The dollar amounts don’t have to be specified but the establishment of the fee and purpose for the fee on transfer of property must be specified in the CC&R’s. If it is not, they cannot charge the fee.

    These fees are nothing more than mandated subsidy of management companies, the $400 limit was put into law by the Realtors to limit what associations were actually charging, I would argue that the cost for that service is no more than $50. You can bet that whenever a limit is placed in statute it becomes the actual value for that fee. So, the attempt to limit what some ridiculous associations were charging resulted in all other association raising their fee to $400. Out of the 50 states, Arizona has the highest limit on that fee allowed in statute by far the second-place state is Washington at $250. Yet every time any home is sold in these communities the association gets $400 and nobody complains? Think about it 1.9 million homes time $400 every 10 years that equals $760 Million dollars for the HOA industry every 10 years to get a copy of the community documents that are produced by printing an electronic file. Yet every time I try and change this the HOA industry players of AACM and CAI all claim poverty and that this doesn’t even covers their cost. Which anyone can see is total BS.

    Dennis

    I’ve tried to change this fee for years all to no avail.

  2. DennisL

    Dave
    A little clarification on my prior comment. the first para. applied to actual transfer fees that associations can apply to property transfers. Those are totally separate and distinct from the records disclosure fee set in law at a maximum of $400. There can be several different types of fees association with a property transfer required by the association. I’ve seen associations charge the seller a fee then charges the buyer a fee and then charges the seller the disclosure fee.
    Dennis

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