Whether you are purchasing or selling a home or condominium that is managed by a homeowners association (HOA), there are some additional considerations you need to make compared to an ordinary freehold home. Any kind of home you purchase or sell is subject to several closing fees that you will be required to pay. When it comes to property governed by HOAs, there might be homeowner’s association disclosure fees to pay in addition to the other house closing fees. In this article, our team of HOA management services in Glendale takes a closer look at these fees.
Meaning of Disclosure Fees
Homeowners association disclosure fees, also referred to as transfer fees, are standard fees that might arise when a property is transferred from one homeowner to another. These fees are put in place to cater to the expenses associated with document preparation, giving out homeowners association rules to the new property owner, tackling property inspection records, making changes to the names of the owner in the databases, placing new security codes and cards, and other administrative charges.
How Much Do They Cost?
Homeowner’s association disclosure fees vary from one development to the next and are set by the association’s management and governing documents in the covenants, conditions, and restrictions (CC&Rs). These charges are determined based on the sort of services provided by the homeowners association to both the parties (buyers and sellers) involved in the property sale. That being said, these kinds of charges can be as low as $100 or as high as $1,000, with the average being about $250. Although it is the homeowners association that sets the cost of disclosure fees, in some states, there are state laws that regulate them. Buyers and sellers need to know that disclosure fees are sometimes excluded in real estate contracts, but HOAs are obligated to disclose these fees to both parties before the sale.
Whose Responsibility is it to Pay HOA Disclosure Fees?
Either the buyer or the seller will pay the transfer fees based on the details of the homeowners association addendum that was originally signed together with the purchase contract. It is not uncommon for people buying or selling property governed by a homeowners association to be caught by surprise by certain fees by the time their property deal is finalized. It is crucial for all parties involved in the real estate deal to decide who will be taking responsibility for paying the HOA disclosure fees so that they can budget the total closing expenses accordingly.
HOA Management in Glendale
If you are interested in buying a home, make sure the HOA is managed by a reliable Glendale HOA management company. Our professionals at City Property Management will be able to help anyone looking for the best home environment.