Pre-Paying H.O.A transfer fees? Another effect of the market..

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Real Estate Agent with Realty Executives

For the last several months, we have been warning sellers that their association "may" ask to be paid BEFORE they will release their disclosure package and escrow statements to the title company. Traditionally, these fees have always been paid at closing. Some companies now want a partial payment, some more. When the title company attempts to order the escrow statement and disclosure package for the buyer, they are being told that either the entire amounts for disclosure and/or transfer fees or a portion thereof must be paid up front. The seller may either pay by credit card or e-check. This has the potential to delay the forwarding of the disclosure packages to the perspective buyers. In addition, in the case of a short sale or bank owned property, the title companies are having difficulties getting the seller to pay upfront. In some rare cases of bank owned or short sales, the banks will not allow the payment at all.  So, seller's need to know that this could happen so that it will not be such a shock when we receive that dreaded call from the title company to request the payment up front.

This is just another effect of changing times in the market place. These poor associations must feel it isn't fair for them to have to provide this information if there is a chance they won't collect their ever rising fees. Doesn't seem too long ago that normal transfer fees were about $50.00. With charges of $300-$400.00 ( and more) for providing this information, one would think this is a pretty darn good source of revenue for them.

I'm Nick Bastian. I sell real estate in Tempe and the east valley. If you have any questions about our communities or would like housing information, contract help or a market evaluation, please feel free to visit our web site at http://www.nickbastian.com/ or feel free to call me at 602-803-6425.

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Nick Bastian is a Tempe real estate agent specializing in the South East Valley and can be reached at 602-803-6425

Nick also writes a "hyper-local" blog about the communities, events, businesses and homes near light rail in Phoenix, Tempe and in Mesa.
Follow Nick on Twitter and on Google+!

 

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Rainmaker
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Arizona Real Estate Associate Broker
MR Realty - Mesa, AZ
Nick - Everybody has to secure their portion it seems. Some ways I don't blame the HOA companies for collecting after all the man power to send it out costs someone. However, does it have to be so much of a fee, $300 - $500 bucks seems a little steep anymore. Monopoly, I tell you! Just don't collect $200 when you pass 'Go'.
May 06, 2008 05:36 AM #1
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Rainmaker
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Nick Bastian

Real Estate Agent - Tempe
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