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.