Question:
I buy HOA foreclosures in Texas. One of the management companies (the same one every time, though HOA is always different) that sells those apartments is trying to charge me transfer fee and/or capital fund fee in the first or second month of ownership. This happens after I buy and it is additional to the amount I paid on the auction. My understanding is if I buy foreclosure I cannot owe anything to the foreclosing agent on top of the final bid, this is how the auction is working. If there are any fees they must be included in starting bid. This is not a conventional sale to charge for resale certificates, transfers and other fees (my opinion). However, this management company (Randall Management if it tells you something, 1.6 out of 5 on Google reviews) does not think so. I read quite a bit of the property code, but did not find any information on that. Other HOA under another management companies don’t charge any fees after the auction.
I would appreciate any advice or thoughts on that topic. Do you consider this is legit?
– Victoria
Answer:
Hi Victoria,
It is not uncommon for homeowners associations to charge a transfer fee or resale certificate fee, even in Texas. Such fees typically range from $100 to $400, though they can still vary from one association to another. Membership in an HOA is usually mandatory upon the purchase of a home in an HOA-run community.
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