If you weren’t aware, when you purchase a property within a community governed by a Homeowner’s Association, as the new owner, you are typically required to pay certain one-time fees to the Association in connection with the transfer of the property.
One of these fees covers the “cost” of retrieving all of the HOA documentation. It’s a documents and disclosures administrative fee which allows the new buyer to properly conduct their inspections period as outlined in the Arizona Residential Purchase Contract.
We all know that sometimes these fees can be excessive enough to question their validity. Rest assured, changes are afoot:
HOAs may charge a homeowner no more than $400 in compensation for the preparation of documents for the purpose of resale disclosure. These fees are to be collected no earlier than the close of escrow and may only be charged once to a homeowner for a transaction. A.R.S. § 33-1260(C, D); A.R.S. § 33-1806(C, D); SB 1149.
Jon Griffith
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