Q: Someone who just moved into our community told me they were charged an HOA transfer fee of over $800. It was reduced to just over $500 when he questioned the price. Even the escrow person questioned the fee. We were involved with two HOAs in Washington State before we moved here and had no transfer fee with either. Is this something just in California? Is it designated by the state? What is there to transfer, a piece of paper? This makes no sense at all. Or is it a tax? — J.S.
Community service organizations or CSOs are organizations that typically provide either additional benefits to the residents of an HOA community or perform environmental preservation functions. Each time a residence subject to a CSO changes ownership, a fee is paid to the CSO to help fund its activities. CSOs formed on or after Feb. 19, 2003, are not allowed to charge transfer fees.
Some management companies charge buyers a “transfer fee,” submitting those fees to escrow. I can find no law authorizing such fees, which often can be hundreds of dollars per transaction.