Fees + New Owner - Need Advice

Started by ChuckF5 • 10 replies • 850 views

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ChuckF5 (Georgia)
Posts: 3

Posted:

I need feedback on a HOA fees.

I am a first time buyer.

During the buying process, everyone involved expressed my HOA fees as $50 a month.

2 days before closing, I was notified that we had to come up with $500.00 for the HOA initial fee. Everyone expressed surprise at how high the fees were. I came up with the money.

Less than a week after my first payment (only 30 days after closing), I get a bill for $600.00 (entire year payment) that was due in 2 weeks.

I reached out and expressed that I was told we would paying monthly and they are refusing.

As a side note, the previous owner (the house is 4 years old) didn’t leave a card for the pool or a key for the mail box. When I emailed the HOA to see if they could help, they offered to replace them for a fee.

This was my 1st and 2nd contact with the HOA. No welcome to the neighborhood or outline of who they are and what they do... etc. Just “give me money.”

So, since I did not budget for another $600.00 at once, anything I can do? Also, isn’t $500.00 as an initiation fee kind of ridiculous?

FredS7 (Arizona)
Posts: 927

Posted:

1. You could request a payment plan. Maybe the HOA will agree.

2. About the keys- your beef is with the previous owner.

ChuckF5 (Georgia)
Posts: 3

Posted:

1.) They refused a payment plan.
2.) So, what I should do is just wait until I move and make the next owner pay $60 for a $5 key card.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Chuck

An association having an entrance fee, transfer fee, etc. is not uncommon. It might not be liked but it is not uncommon.

We pay our dues quarterly ($150 per quarter) but I have yet to see a real estate listing that quotes our due other then monthly. Yes they might be $50 per month, but you will be billed quarterly.

Bottom line is that what happen to you is not uncommon.

ChuckF5 (Georgia)
Posts: 3

Posted:

Cool. I get what you are saying, but just because it’s common doesn’t mean it’s right. Are there governing bodies that regulate HOAs? I find it a bit off that they can just charge whatever and whenever with little consideration or upfront disclosure.

AllumW (Florida)
Posts: 68

Posted:

Our CCRs indicate the amount of the assessment and the frequency. I'm not sure what document would indicate if the amount has changed.

Can't you get a replacement mailbox key from the post office?

FredS7 (Arizona)
Posts: 927

Posted:

> So, what I should do is just wait until I move and make the next owner pay $60 for a $5 key card.

I'm suggesting you go after the guy who sold you the house.

> Are there governing bodies that regulate HOAs?

The governing body is you and your neighbors. Your neighbors elected the board that set the fees.

AugustinD
Posts: 5,144

Posted:

Chuck, read your HOA's Bylaws, Declaration and Rules and Regs for information on whether the HOA (a) can charge you for the entire year's assessment in advance; and (b) can charge the buyer a transfer fee. Were the Bylaws and Declaration provided to you in advance of your purchase, as part of the home's disclosure? Many states require this. After this disclosure, it's buyer beware.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I know associations that have a 1% of sale price transfer fee. The 1% becomes a negotiating point between seller and buyer, assuming the buyer is aware of it and that itself is another issue. It appears Chuck was not aware of such a fee. Buyer beware.

BenA2 (Texas)
Posts: 1,273

Posted:

One thing you should do is get a copy of the Covenants, conditions, and restrictions (CC&Rs) and your bylaws and read them. The CC&Rs is the document that mandates you, as the owner, to follow certain rules. The bylaws generally dictate how the HOA is managed but cannot put restrictions or conditions on your property. The reason this is important is that the people running HOAs don't always understand how it works and have been known to create rules that are not in accordance with the CC&Rs.

I would check to see if the CC&Rs require paying for a year in advance. Our HOA sends out a bill for the whole year but our CC&Rs say we can pay monthly. So, if someone wanted to pay by the month we would have to let them. In our case the assessments are only $89 per year so most people prefer paying for the whole year. Also, I would check and see if the CC&Rs require an initiation fee. That is unusual but CC&Rs can require anything that does not violate the law.

Finally, the CC&Rs cannot be changed by the board or management by writing rules. Usually they require at least a majority of all owners to change (not just majority of votes) and often require 66 or more percent.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Chuck,

The $500, as others have pointed out, may have been a transfer fee.
The time to argue who would pay it was before closing. Your Realtor should have been helping you here.

You were involved in an advertising gimmick. The Annual assessment breaks down to $50 per month. Hence, this is what is placed into the advertising of the home.

Were you actually told that you would be paying this monthly or did you simply assume it because you were told assessments were $50 per month (a common mistake)? As others have said, your Associations governing documents should specify if you are to pay monthly or not. If they are silent, then it's the Boards option.

Regarding the key and pool access card. As others have said, this is an issue between you and the previous owner. If your purchase was recent, contact your Realtor - they may be able to assist. If you do have to obtain a new card and key, this does cost the Association money who is simply passing on the costs to you. It sucks, but it appears you didn't have the best Realtor you could have had. A good Realtor would have looked into these things for you.

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