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SO HOW MUCH CAN THE ASSOCIATION CHARGE AT CLOSING?
By
Eric Glazer, Esq.
Published December 12, 2022
I received a great e-mail from a fan of this blog this week:
Hi, Eric:
I listen to your radio show almost every Sunday and really enjoy
it. Today I read your blog about how hard it is to get board
members and I couldn't agree more. I was thinking the same
thing. Why would anyone want to serve on the board? I am a
full-time Realtor but I also hold an active CAM license. Since I
am a CAM and keep up with what's going on with condos and HOAs,
I often question some of the things I see management companies
doing.
I have a closing
coming up and I'm looking at the estoppel from a large
nationwide management company and they are charging the Buyer
$150 as a "Change of Records Fee" in addition to $299 for the
estoppel. I
know that the estoppel fees went up to $299 (the "no rush" fee)
but is it kosher for them to charge a $150 "Change of Records
Fee"?
Another closing I
had recently, the management company was charging a
"Delinquency" fee of $170 on a past due amount of $25. When I
questioned them about it, I was told, that "we charge that to
everyone who owes any amount for over 60 days". Really? A $170
late fee on $25? You can't do that. I checked Chapter 720 to
make sure and went back to the management company so many times
protesting the $170, citing Chapter 720, that finally they
finally agreed to waive it, just to shut me up.
It wasn't so much
the money. The Seller would have paid it, not being any the
wiser. It was just that I was incensed that the management
company thought they could get away with charging whatever they
wanted. I just wonder how many Buyers or Sellers, whose agents
are not aware of the law, let things like this slide.
You are doing a great job educating CAMs and board members. I
think Realtors and management companies need more education
too. I could go on and on with experiences I've had with condo
and HOA management companies but this is all for now.
Thanks Eric for all you do. There is a special place in heaven
for you!
Best regards,
Ruth
Let’s set the record
straight. For condos, the statute reads:
As for HOAs, HERE’S THE STATUTE:
FS 720.30851(6) An
association or its authorized agent may charge a reasonable fee
for the preparation and delivery of an estoppel certificate,
which may not exceed $250, if, on the date the certificate is
issued, no delinquent amounts are owed to the association for
the applicable parcel. If an estoppel certificate is requested
on an expedited basis and delivered within 3 business days after
the request, the association may charge an additional fee of
$100. If a delinquent amount is owed to the association for the
applicable parcel, an additional fee for the estoppel
certificate may not exceed $150.
(8) The authority to charge a fee for the preparation and
delivery of the estoppel certificate must be established by a
written resolution adopted by the board or provided by a written
management bookkeeping, or maintenance contract and is payable
upon the preparation of the certificate.
One hint for condos ------ don’t even think about charging a
capital contribution fee. A federal court has already ruled
that condos can only charge a “transfer fee” as allowed by
Florida Statute 718.112 which currently reads:
An association may
not charge a fee in connection with the sale, mortgage, lease,
sublease, or other transfer of a unit unless the association is
required to approve such transfer and a fee for such approval is
provided for in the declaration, articles, or bylaws. Any such
fee may be preset but may not exceed $150 per applicant.
So why can’t the above statutes simply be followed as Ruth asks?
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About
HOA & Condo Blog
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Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
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Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric has been the host of Condo Craze
and HOAs, a weekly one hour radio show that airs at 11:00 a.m.
each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.
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