Question:
Our HOA is proposing an “initial assessment” of .033% on the purchase price of a home to be paid by the purchaser. The stated purpose of the fee is to provide additional revenue to reduce monthly assessments for all owners.
All I can find that authorizes fees on home sales in an HOA is FS 720.30851 (6) and (8). Our HOA contends they have the right to impose any amount of a flat fee or percentage of home selling price on the purchasers of homes. Are they correct?
– Larry
Answer:
Section 720.30851(6) and (8) of the Florida Homeowners’ Association Act does allow an HOA to charge a reasonable fee for the provision of an estoppel certificate. In addition to this, an HOA may also charge a reasonable fee (not exceeding $150) to the prospective purchaser for requests for information other than that required by law. As per Section 720.303(5)(d):
“The association or its authorized agent is not required to provide a prospective purchaser or lienholder with information about the residential subdivision or the association other than information or documents required by this chapter to be made available or disclosed. The association or its authorized agent may charge a reasonable fee to the prospective purchaser or lienholder or the current parcel owner or member for providing good faith responses to requests for information by or on behalf of a prospective purchaser or lienholder, other than that required by law, if the fee does not exceed $150 plus the reasonable cost of photocopying and any attorney fees incurred by the association in connection with the response.”
It is common for associations to charge an initiation fee or capital contribution fee to new homeowners. This fee is a one-time and non-refundable fee that sets up the new owner’s account with the HOA and covers any and all expenses associated with that.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
