Transfer Fees In Florida

According to Florida Statute 689.28, titled "Prohibition against transfer fee covenants" states that a "transfer fee" is a "fee or charge required by a transfer fee covenant and payable upon the transfer of an interest in real property, or payable for the right to make or accept such transfer, regardless of whether the fee or charge is a fixed amount or is determined as a percentage of the value of the property, the purchase price, or other consideration given for the transfer."

According to the statute, "any fee, charge, assessment, fine, or other amount payable to a homeowners', condominium, cooperative, mobile home, or property owners' association pursuant to a declaration or covenant or law applicable to such association, including, but not limited to, fees or charges payable for estoppel letters or certificates issued by the association or its authorized agent" is not considered a transfer fee according to the section.

From my understanding, a developer cannot charge transfer fees, but I question as to whether a HOA can. While that statute states that any fee, charge, assessment, fine, or other amount payable to a HOA is not considered a transfer fee, I was curious as to the wording. Transfer fees are different from assessments and regular fees, and I was wondering if the language concerning HOAs was only placed to prevent a conflict with other assessments and fees required by covenant. This just may be my interpretation, but I would think that without the section referring to HOAs, a homeowner could use the transfer fee legislation to try and fight paying other types of obligations.

Would that be a "transfer fee" or a fee to cover requests of information if desired by a prospective purchaser, only if requested. The covenants and restrictions I was reading state that "the Association shall charge and collect an initial,
one time, Initial Assessment / Transfer Fee from each Owner in the amount of $250.00 per Lot for all Lot transfers to any new Owner."

That is actually what made me think of it...

I had noticed the article and then remember in the amended covenants that my neighborhood is trying to enforce what they called an "initial assessment/transfer fee."

I had read that Florida had laws against Transfer Fees, but the legislation had some exclusions, but I was unclear of the interpretation...

I had viewed the intent of the law to distinguish transfer fees from other types of fees the HOA can charge...

As for the private transfer fees, I found it ridiculous that companies would do that, and I fail to see the truth behind the action of such a fee...

David,

The FL statute quoted by the OP does not apply to HOAs. From FL 689.26:

"The following are not transfer fees for purposes of this section:

7. Any fee, charge, assessment, fine, or other amount payable to a homeowners', condominium, cooperative, mobile home, or property owners' association pursuant to a declaration or covenant or law applicable to such association, including, but not limited to, fees or charges payable for estoppel letters or certificates issued by the association or its authorized agent."

OP = either "original post" or "original poster" depending on the context.

YES