Layers Upon Layers of HOA Fees

avatarthumbnail.jpgIt’s not uncommon when buying in an active adult community to run into a few extra fees – capital preservation fees, HOA transfer fees, disclosure fees are some of the most common. These fees are negotiable but more often than not fall back on the buyer to pay.

But for those buying attached properties – called casitas in areas such as Westbrook Village, there’s an extra layer of fees if, as is likely, the property also is governed by a subassociation. These subassociations are the ones responsible for the smaller outdoor pool in a given area, as well as the landscaping and usually the hazard insurance. For their trouble, they also now are charging transfer and capital preservation fees in many cases.

And none of this even touches the current hijacking scheme some HOAs have started, requiring an upfront fee for the HOA docs that are required by the contract to be sent to the buyer. (Title companies are resorting to taking this out of the buyer’s earnest deposit if there’s no other immediate source for the funds.)

So what’s the lesson in all this? Do it yourself is getting more difficult, and it’s also more important than ever to have an agent who’s familiar with the fee structure in a given community (or at least can find the answers quickly, since the figures are changing almost constantly.)

Without expert help, don’t be surprised when your HUD-1 settlement statement shows some fees you might not have expected.

[tags]Phoenix real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at

1 Comment

  • Portland Real Estate 8 years ago

    These fees are going to continue getting worse and there will be more of them, and they will get more confusing too. Unfortunately things like this generally get out of control enough for legislation to have to step in to try to fix it. More government and regulation is not always the best thing to do, but in this case its probably going to get bad enough that it may help.


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