SC Different Fees For Different Owners

Started by JamesT1 • 6 replies • 1132 views

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JamesT1 (South Carolina)
Posts: 2

Posted:

We are looking into joining a community in SC. This is a new area where only 2 people have actually moved in to their home. About 35 others have purchased lots and are building. We discovered that some of the earlier purchasers were not charged a fee that is to go to the association, that we will be charged. This is a $1000 HOA fee in addition to the monthly dues. We were told that this money is to be used by the association for future use. How can the association charge a fee to some but not all owners when all owners will benefit? If this is legal I do not have a problem paying the fee but feel it is unfair to not charge everyone when everyone will benefit. Thanks for any help..

DanaA (Florida)
Posts: 117

Posted:

If you are purchasing from a developer or builder, or even a resale for that matter, simply negotiate that in your purchase contract that the initial HOA fee of $1000 will be paid on your behalf by the seller. I see it done in Florida a lot, we have several communities with initial up front Association fees. Perhaps this community ammended their docs since initial startup, but if it is in the docs now, then it has to be paid at closing by somebody.

JamesT1 (South Carolina)
Posts: 2

Posted:

Dana,

This is a brand new community by ********. I was just wondering if SC had any law governing how an HOA may charge individuals differently. It is a fee that was imposed on people who purchase a lot after a certain date. This just does not seem fair and I could see where if everyone finds out that it may cause problems amongst the owners down the road. Granted if all but 30 or so out of the total of 500 to be built have to pay it, I don't have a real problem with it, but, if they can just start and stop charging people whenever they want, what is there to stop them from not charging the fee after a certain date, and only a select few be charged?

HaroldS (Arizona)
Posts: 906

Posted:

Very unusual. Have seen this "fee" imposed by owner run HOAs on resales but never by a builder/developer. Seems it would affect sales. Why not just include it in the price of the house/lot? Is this money actually going into a reserve for the HOA or just another pocket liner for *******? Harold

MicheleD (Kentucky)
Posts: 4,491

Posted:

Is this "fee" documented in a CC&R or set of by-laws?

If it is not documented anywhere, in by-laws or the CC&Rs, I would negotiate it out of the purchase price.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

JamesT1: You need to check this out with the realtor who is selling the properties within the community. Next, you definitely need to review the official documents, CC&Rs, the Declaration and Bylaws which have established the dictates of the Association, now while under developer control, and for future turnover to residents for resident control.

The fee of $1000 you are speaking of may be what is called the 'Initiation Fee' which is due to the Declarant/Developer at the time of purchase/settlement of a unit. These funds are to be used to "maintain the association at the discretion of the Declarant", and while under his control.
The amount is usually added to settlement costs and it may be that 'earlier purchasers' did not realize they were paying it.

The realtor should be able to assist with your questions.

SusanJ3 (South Carolina)
Posts: 61

Posted:

We had a capital assessment of two months dues we paid at closing for our new community in SC. I was green enough to not question it, but I understand that we can getit back if we sell.

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