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HOA $500 transfer fee on a lease?

Started by MonserratP • 12 replies • 1552 views

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MonserratP (Florida)
Posts: 4
Posted:
I live in Cooper City, Florida. I purchased a townhouse in a development called Cascada Isles Drive, in Monterra, Cooper City. The purchase took place in early 2015, and shorty after, in March, a tenant moved in. There were no problems with the closing, and I was not asked to pay any kind of transfer fee. My tenant now is due to RENEW their previously approved lease, for which they paid $100 each (a couple who got married last year). They have now told me that they have imposed a $500 ledger transfer fee for the lease and will not approve the renewal until that is paid. This is not a DEPOSIT, but a fee, non refundable.

Can the HOA do that? Aren't transfer fees and application fees the same? Those application fees were already collected.
GenoS (Florida)
Posts: 4,276
Posted:
Please read the posting rules

Rule 3: NO NAMES!
RichardP13 (California)
Posts: 3,868
Posted:
This might help you

http://web.mmilive.net/Portals/96/Clubhouse/Cascada%20Isle%20at%20Monterra%20Screening%20Application.pdf
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By RichardP13 on 02/19/2016 1:47 PM
This might help you

http://web.mmilive.net/Portals/96/Clubhouse/Cascada%20Isle%20at%20Monterra%20Screening%20Application.pdf

Only $500 item is #20 - damage deposit.
Sikubali jukumu. Read all posts at your own risk.
MonserratP (Florida)
Posts: 4
Posted:
Hello Richard,

No, they have now changed the application and charge a $500 deposit and in addition to that, a $500 transfer fee, and a resale certification fee (in the case of a sale equal to 1/4 total year assessments). It's just crazy!. This in addition to the $100 application fees. Plus a $25 processing fee....
MonserratP (Florida)
Posts: 4
Posted:
What names? I did not give my name!
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By MonserratP on 02/19/2016 2:06 PM
What names? I did not give my name!

You didn't, but you did give the name of your community. No biggie it's not like you'll get banned for it, just be discreet in the future and it's all good.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MonserratP on 02/19/2016 2:05 PM
Hello Richard,

No, they have now changed the application and charge a $500 deposit and in addition to that, a $500 transfer fee, and a resale certification fee (in the case of a sale equal to 1/4 total year assessments). It's just crazy!. This in addition to the $100 application fees. Plus a $25 processing fee....

Hi Monserrat,

Welcome to the forum.

Perhaps those fees were in the works when you purchased.

You should have been notified when the fees were approved/adopted.
Does the Association have your correct mailing address (something to check)?
Perhaps they sent into to your agent who failed to send it to you.
Perhaps it was sent to you and you didn't read the info carefully (something to check).
Perhaps they didn't send it at all, thinking everyone was aware (something to bring to their attention).

The larger concern would be, why are all those fees in place and how much does the Association receive?

I would suspect that the application and processing fees go straight to the MC.
The transfer fee likely goes to the Association or may be split between the Association and MC.

Were the fees put in place to discourage rentals?
Were the fees put in place due to financial problems the Association may be having?

Those are good questions to ask your Board.
PitA
Posts: 1,416
Posted:
Evidently your Association is attempting to discourage rentals by making them less profitable for the renter. Or simply collecting the costs of HAVING rentees up-front.

Either:

Fight to have the 'rules' changed through a vote of the membership (new directors, etc.)

or

Sell out and move on down the road

or

Seek appropriate legal advice.

Next time, before purchasing:

CAVEAT EMPTOR
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mons

I believe a BOD can impose fees. Be they fair or not is another question.

I see it as an end run to limit renting.

In many associations most anything that limits renters will typically be approved by fellow owners if such approval is necessary.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Wow, after reading that PDF, I cant imagine living in an HOA with that level of micro-mgmt. Its almost like joining a cult. No thanks.
TimB4 (Tennessee)
Posts: 21,059
Posted:
I agree with Steve.
PitA
Posts: 1,416
Posted:
While I disagree with many of the 'rules' posted in the PDF, they seem similar to many of the 'rule breaches' being continually debated/argued/litigated on this very site.

The association in question has merely written and recorded their rules regarding rentals in an 'iron clad' and clearly understandable fashion.

How many posts have concerned a tenant's requirement to follow the rules ?

How many posts have covered non payment by HO while unit is rented ?

There can NOT be a claim of: I didn't know, or, I was never told.

Micro-managed ? not really

Spelled out in depth and well documented with signatures ? You betcha !

WAY - TO - GO

No need for Caveat Emptor, One has knowingly and willingly SIGNED OFF

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