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A transfer fee does serve a purpose. Perhaps your HOA found that it was incurring costs every time someone new moved into the community so they decided to charge a fee. This usually covers things like printing and mailing costs for the declaration and bylaws, handbooks, etc. I understand you’re mad OP, but the fee is necessary. Someone somewhere just made a mistake about not letting you know before you purchased the home. Just be glad it’s only a one-time fee and that your HOA doesn’t charge an exorbitant amount like many others.