Tuesday, December 24, 2013

CAI Continues to Misrepresent Costly HOA Transfer Fee

CAI Continues to Misrepresent Costly and Unjustified Transfer Fee

Transfer fees exemplify an abusive fee (tax) on HOA home buyers that continues "because it can" and not because it adds value or integrity to a real estate transaction. Molly-Polly from the CAI has no pride in defending this fee on HOA home sales. She says others, not current HOA home owners, should pay for tasks associated with the conveyance of property such as administrative tasks and confirming the financial status of a homeowner with the HOA . Think about this. When someone dies, gets married, has someone else move into a home, gets divorced, or requires a routine status letter on a credit check there is no separate fee: this is part of what an HOA does and pays the property management company to do. Are there separate fees for each resident who uses the swimming pool, billiards tables, or clubhouse lounge? NO! She also mentions that DORA will take this issue up when licensing property managers. No it won't! DORA can't change the law and the law states the fee can be charged and in any amount. DORA can make any guideline it wants but it can't make or change laws, it follows the law. Her claiming that the transfer fee is high because a month's HOA dues are in the fee is unsupported.  In fact the law, SB 11-234, states this is not an appropriate use of the transfer fee and the fee is retained by and charged by the management company. If it includes dues why does the property manager retain the money! This fee is illegal on most all other residential home sales except for HOA's due to a "one-liner" in the law without any justification other than "it should continue because it can". Home buyers believe this fee is legally imposed, mandated by the HOA, and the amount set by the HOA, all not true. What a tangled web some continue to weave on this issue and unfortunately to date have gotten away with it.
The Colorado HOA Forum   www.coloradohoaforum.com  will continue in its' effort to end this abusive and costly fee on HOA home buyers.

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