Question:
Can our Minnesota HOA charge a buy-in fee to new homeowners?
When a unit sells to a new owner can we charge a flat fee not for paperwork and database update (transfer fee). This would be a fee for common element use (marina, pool, private road) that we have all been paying for. Is this legal if we implement it into our governing docs?
– Kathy
Answer:
Section 515B.3-102(10) of the Minnesota Common Interest Ownership Act states: “Except as provided in subsections (b), (c), (d), and (e), and subject to the provisions of the declaration or bylaws, the association shall have the power to impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements, other than limited common elements, and for services provided to unit owners.”
An HOA may charge a buy-in or initiation fee to new owners, provided the authority to do so exists in the governing documents of the association. To learn more about initiation fees, click here: https://www.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
