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Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 09:29 AM   #1
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Post house purchase closing cost? How to fight? Am I right?

After I closed on my house I received my HOA statement. It included a $50 transfer fee. When I asked the HOA management company about it I was told it is in the contract between the HOA and the HOA management company.

I don't believe that I am obligated to pay it because:
1. No pre-close documents states a “Transfer Fee” is to be paid by the buyer.
2. No closing documents states a “Transfer Fee” is to be paid by the buyer.
3. The “Declaration of Covenants, Conditions, Restrictions and Easements" does not state that a “Transfer Fee” is to be paid by the buyer.
4. The closing is the appropriate time for all financial obligations to be made known to the buyer, agreed to and paid. The request by Sentry Management is being made after the closing date on the home.
5. I fulfilled all my legal and financial obligations at the time of the closing.

I've checked with my closing attorney - no help - he said talk with the HOA management co. There isn't a HOA board yet because the community is not sold out yet.

So, for you lawyers out there?
Am I obligated to pay this fee?
If not, how do I fight it?
This is more of of an annoyance and I have the time to fight it.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 09:59 AM   #2
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Re: Post house purchase closing cost? How to fight? Am I right?

We had a similar surprise upon closing and our lawyer agreed that it was his problem not knowing about it (that is why we paid him) and he paid the extra.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 10:46 AM   #3
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Re: Post house purchase closing cost? How to fight? Am I right?

I would not pay it.... ask them to produce a document where you signed that said you were obligated to pay...
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 05:11 PM   #4
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Re: Post house purchase closing cost? How to fight? Am I right?

Same $50 fee at closing. I said "WHAT" eyes rolled, people said yah it's BS, but it happens on every sale in my area.
We were running late and I wanted to get started "smiling all the way to the bank," so I sucked it up.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 05:32 PM   #5
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Re: Post house purchase closing cost? How to fight? Am I right?

Quote:
Originally Posted by dex
After I closed on my house I received my HOA statement. It included a $50 transfer fee. When I asked the HOA management company about it I was told it is in the contract between the HOA and the HOA management company.
I don't believe that I am obligated to pay it because:
1. No pre-close documents states a “Transfer Fee” is to be paid by the buyer.
2. No closing documents states a “Transfer Fee” is to be paid by the buyer.
3. The “Declaration of Covenants, Conditions, Restrictions and Easements" does not state that a “Transfer Fee” is to be paid by the buyer.
4. The closing is the appropriate time for all financial obligations to be made known to the buyer, agreed to and paid. The request by Sentry Management is being made after the closing date on the home.
5. I fulfilled all my legal and financial obligations at the time of the closing.
I've checked with my closing attorney - no help - he said talk with the HOA management co. There isn't a HOA board yet because the community is not sold out yet.
So, for you lawyers out there?
Am I obligated to pay this fee?
If not, how do I fight it?
This is more of of an annoyance and I have the time to fight it.
The issue is that you're trying to hold the seller, the title company, and the rest of the home-sale transaction parties responsible for this fee.

The reality is that none of them have anything to do with it. No one has failed to disclose anything and no laws have been broken. (Whether or not you've been wronged and whether justice has been served is a totally separate problem.) The HOA company is doing it to you as a part of your regular assessment. They're passing on their cost of doing business directly instead of hiding it within the budget. They see it as analogous to the fees charged by utility companies (especially phone & gas in our area) to transfer the home's accounts from the seller to the buyer. It has nothing to do with the real estate transaction.

But, hey, if you find a way to win this one then make sure it's disseminated across the nation. I wouldn't mind reining in my HOA a little.

Morally you're right. But no one is going to pay you $50 to acknowledge it.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 05:48 PM   #6
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Re: Post house purchase closing cost? How to fight? Am I right?

This is probably only the beginning. IMHO HOA's are pure evil. Just wait until you want to put some bushes and a lawn in, or gawd forbid, a pool!! You'll have to submit a plan and go before some "landscape committee". It can be a real nightmare.... I say Get out now!!!! SELL!! SELL!! SELL!!!!!! I am, unfortunately, dead serious. Best of luck to you.


PS- you will probably end up paying that $50.00 or you'll wind up in court. Personally, I'd just pay it, and move on with the next (inevitable) battle.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 05:50 PM   #7
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Re: Post house purchase closing cost? How to fight? Am I right?

Nords,
You are close to getting me to pay the "Transfer Fee". I know I'm responsible for certain costs if I don't do my homework when I buy a place; like statutory obligations or items I choose to do; like having gas or electricity.

According to the HOA I am obligated to pay this transfer fee because the HOA manangement company has a contract with the HOA association.

Here is my thinking - if the fee was $50,000 instead of $50 and I (and others) were obligated to pay or else the HOA would put a lean on my house all real estate deals with an HOA would cease because people would know the final cost of their home. This is what bothers me. It seems simple to me but try explaining it to the HOA mgmt company who says "it sometimes happens this way" - and I'm sure everyone else pays it!
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 05:51 PM   #8
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Re: Post house purchase closing cost? How to fight? Am I right?

Quote:
Originally Posted by Alex

PS- you will probably end up paying that $50.00 or you'll wind up in court. Personally, I'd just pay it, and move on with the next (inevitable) battle.
You are probably right. I sent a fax to the builder. I'm waiting to see what they have to say.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 05:53 PM   #9
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Re: Post house purchase closing cost? How to fight? Am I right?

Quote:
Originally Posted by dex
Here is my thinking - if the fee was $50,000 instead of $50 and I (and others) were obligated to pay or else the HOA would put a lean on my house all real estate deals with an HOA would cease because people would know the final cost of their home. This is what bothers me. It seems simple to me but try explaining it to the HOA mgmt company who says "it sometimes happens this way" - and I'm sure everyone else pays it!
There you go again-- applying logic to legal requirements and HOAs.

Most CC&Rs have exactly that provision in them for building the rec center pool or paying the legal fees when sued. Instead of liens, though, the HOA would be much more likely to file foreclosure.
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Re: Post house purchase closing cost? How to fight? Am I right?
Old 04-11-2007, 06:14 PM   #10
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Re: Post house purchase closing cost? How to fight? Am I right?

When I sold my last condo the HOA management company charged my buyer $150 at closing.

I questioned this fee and they said the management company and the HOA share the money and that it was used to print up monthly dues coupons in the new owners names and for other things that they could not name.

I think it was mostly just a way for them to get a little cut of the money.

Everyone seems to want a cut at closing, our county charges a transfer fee of $2 per $1,000 of the sales price to transfer the deed.
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