Some homeowners associations charge fees for transferring the ownership of property from a seller to a buyer. Paragraph C, Fees, of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association (TAR 1922, TREC 36-8) covers that cost.
It states that except for fees covered in Paragraphs A, D, and E, the buyer will pay all costs and fees associated with the property transfer. Paragraph C also contains a blank that caps the buyer’s responsibility at a certain dollar amount, after which the seller will pay the balance.
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Ok, so what if the blank in Paragraph C is left blank, which is effectively $0. Does the Seller then pay the transfer fee for the Buyer since the cap is $0? Or is the transfer fee the Buyers unless that blank in Paragraph C actually has a number added, thereby establishing a cap?
Most HOA transfer fees are a few hundred bucks, far to small to warrant an attorneys time. The agents should work this out. Agents are not attorneys but they are licensed explainers. Should have been corrected or explained that blanks are interpreted as zeros. if it’s unclear to the seller, it’s potentially an E&O claim, and the selling agent should consider picking up the tab.
This is a great post. Notice there is no cap for the seller. It is the sellers responsibility to understand potential transfer fees prior to contract execution. Recently I have ran across HOA’s that lable some transfer fees as buyer transfer fees. Their thought process is to create a revenue stream as some sort of “entrance tax”. My understanding is no matter what it is called, if it is only charged at time of transfer, it is a transfer fee. The language is very clear as to whom pays transfer fees. It is most important to have a clear understanding… Read more »
Some newer communities in the Houston area such as Sienna Plantation also charge a “Foundation Fee” or “Community Amenities Fee”. Sometimes this is 1/2 of 1% of the sales price. This fee should likely be discussed and noted in the contract itself on how it will be paid. Just another reason to obtain the resale certificate for the home during the option period if at all possible.
Always a good idea to call the HOA prior to listing so Seller can be advised what costs we may have to review on potential contract offers.
They will just lie to you like mine did! We never use to have a Transfer Fee this is just another evil scheme to screw the sellers out of their hard earned money. HOA didn’t have to pay one dime of your mortgage yet they get part of the sale of your home, we need to get rid of this stealing law!
Is the resale certificate included in the “transfer fees” in paragraph C?
Sun City in Georgetown is charging 1/4 % of 1 point of the home sales price. On a $400k house that’s a lot more than a few hundred dollars. In addition they charge $200 for the transfer certificate.
Is the resale certificate included in the “transfer fees” in paragraph C
Sun City in Georgetown is charging 1/4 % of the 1 mark of the home deal’s cost. On a $400k house that is significantly in excess of two or three hundred dollars. Furthermore, they charge $200 for the exchange endorsement.
If an HOA has had several Management company changes over several years and no change to associaion rules and covenants, can longtime residents be legally bound to pay any of the “Enhancement/Transfer ” fess as the Sellers?
Is there a legal cap in Texas for the dollar amount that can be charged for a transfer fee?
I have the same question. I am wondering if the recent law change in SB 1588 includes a cap on the transfer fee.
Would like to know answer to Nancy’s question on cap on transfer fee