Condo assication to charge $150.00 for questionnaires

My Condo Trust wants to start charging the homeowners for questionnaires to be completed for lenders when refinancing and selling. This is in addition to the $150 they charge for 6D certificates. Is this Normal?
I am pretty sure I know what you are going to say but just wanted to make sure anyone else isn't already doing this. Also if they are charging this fee shouldn't it be taxed?

Thanks in advance for your help as I plan to bring this topic up in next months meeting.

Jack, we own a management company and yes, we charge for such services--a great deal more than $130.00. As Richard pointed out, it is taxable income.

Question: who is charging for the services? The HOA or the management company. We invoice the seller directly, the check is made payable to our company and is deposited in our business checking account. We report it as taxable income.

In reading your other thread, it looks like they are doing this to generate income for the association. It's not uncommon to charge fees for this service but given what you've related about your condos in the other thread, they need to get a grip on the budget and raise assessments rather than look for new fees to charge. You have a fixed number of units, you're only going to have so many of them sell or refinance in a year. This is not a reliable source of income.

My response is the same as Richard's; the HOA does not receive any of the income and the subject is addressed in our contracts with our clients.

My response is the same as the other managers; in Florida is called an estoppel certificate, and I charge north of $200 for them.(I receive the money for this, not the association.)

1. As PM's said, it's a source of revenue to them that's built into the contract.
2. Some mortgage companies require responses on their own form. Not always that straightforward.
3. There's a potential liability for providing inaccurate info. Fees cover that risk.
4. As you said, it's not like something everyone does every month. Standard fees are based on standard stuff. This would be extra.

An Estoppel Certificate in Florida is a very specific thing. It's not really a questionnaire. Its purpose is to reveal to a prospective buyer any outstanding assessments or existing violations of the property. All information is one-way, from the association to the buyer of the Certificate. The association is entitled only to the name and address of the requester. There are no questions the seller or prospective buyer or lender must answer.

As a self managed HOA, we provide the info on our own form and provide it to the bank or title company. It always has the same info as the bank's own forms. If they say we have to fill out their own form, we simply say no. If they want it filled out on their own form, they can transfer the info themselves..... and they do.

Sometimes you you simply have to say no.

In Florida we are limited as of 2017 we are limited as to what we can charge for an estoppel cert (a max. of $250, with an additional $100 if expedited service is requested (delivered to the requester within 3 days) and/or an additional $150 if the owner's account is delinquent). If certs. are being requested for bulk sales, then: >25 units: $750 total; 26-50 units: $1,000 total; 51-100 units: $1,500 total; and, 101>: $2,500 total.

Also, with the change in the law in 2017 much more information is required on the estoppel cert. (copied from statute):

ASSESSMENT INFORMATION:

1. The regular periodic assessment levied against the parcel is $ per (insert frequency of payment) .
2. The regular periodic assessment is paid through (insert date paid through) .
3. The next installment of the regular periodic assessment is due (insert due date) in the amount of $ .
4. An itemized list of all assessments, special assessments, and other moneys owed on the date of issuance to the association by the parcel owner for a specific parcel is provided.
5. An itemized list of any additional assessments, special assessments, and other moneys that are scheduled to become due for each day after the date of issuance for the effective period of the estoppel certificate is provided. In calculating the amounts that are scheduled to become due, the association may assume that any delinquent amounts will remain delinquent during the effective period of the estoppel certificate.

OTHER INFORMATION:

6. Is there a capital contribution fee, resale fee, transfer fee, or other fee due? (Yes) (No) . If yes, specify the type and amount of the fee.
7. Is there any open violation of rule or regulation noticed to the parcel owner in the association official records? (Yes) (No) .
8. Do the rules and regulations of the association applicable to the parcel require approval by the board of directors of the association for the transfer of the parcel? (Yes) (No) . If yes, has the board approved the transfer of the parcel? (Yes) (No) .
9. Is there a right of first refusal provided to the members or the association? (Yes) (No) . If yes, have the members or the association exercised that right of first refusal? (Yes) (No) .
10. Provide a list of, and contact information for, all other associations of which the parcel is a member.
11. Provide contact information for all insurance maintained by the association.