Estoppel and Transfer fees

Started by PetunkaM • 4 replies • 871 views

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PetunkaM (Florida)
Posts: 1,009

Posted:

Estoppel --Chapter 720
(8) The authority to charge a fee for the preparation and delivery of the estoppel certificate must be established by a written resolution adopted by the board or provided by a written management, bookkeeping, or maintenance contract and is payable upon the preparation of the certificate.

Q1: Please can you please shed light on the above provision?

Q2: Transfer fees: Our Association charges a transfer fee of $100 every time a unit is leased or sold. This fee has not been authorized by our documents. Does it have to be? Or, is it your opinion, the BOD has the authority to approve such a fee-or any other fee for that matter - just at a bod meeting?

Thank you for your opinions.

CarolF (Florida)
Posts: 435

Posted:

An estoppel certificate is necessary in the sale of a property. It indicates whether the seller is
up to date on assessments or owes anything to the association. This is required so that the buyer can get a clear title to the property.

PetunkaM (Florida)
Posts: 1,009

Posted:

Oh, Carol, am very sorry for not being clear. While I understand the importance of Estoppel I do not understand how the fees are adopted.

SheliaH (Indiana)
Posts: 6,964

Posted:

That's a legal question and we aren't attorneys - did you go to your association attorney (or your own) with these questions? If so, what did they say? It's ok to see opinions, but if the association board is going to take a specific action or not (especially when fees and assessments to homeowners are involved), they need to be sure they have the authority to do it

So for what's it's worth, I would say there needs to be something in writing somewhere stating the association will be charging this fee, either in your Bylaws or CCRs, or through a formal resolution that was voted up and passed by the board during an official board meeting (preferably an open one). You don't just enact rules because you can - there needs to be some thought behind it. Why is this fee being enacted, what's the effective date of the rule and were homeowners told about any of this? If so, when? Ask your BOARD these questions and see what happens.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

GenoS (Florida)
Posts: 4,276

Posted:

Two different animals. An Estoppel Letter (or Certificate) has nothing to do with transfer fees.

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