FACTS:

The Seller is being transferred out of state and has a relocation company assisting with the move. The HOA wants to charge disclosure fees twice because there’s a relocation company and a seller.

ISSUE:

Can an HOA charge a $400 disclosure fee twice because there are “two” parties selling?

ANSWER:

No.

DISCUSSION:

A.R.S. § 33-1806(C) allows an HOA to “charge the member a fee of no more than an aggregate of four hundred dollars to compensate the association for the costs incurred in the preparation of a statement or other documents furnished by the association pursuant to this section for purposes of resale disclosure, lien estoppels and any other services related to the transfer or use of the property.” However, in this case, the HOA seeks to charge a cumulative resale disclosure fee of $800.00, which exceeds the statutory cap.

Additionally, the relocation company is not a member “of an HOA,” therefore charging a disclosure fee to the relocation company is likely not allowed.

Note: If there is a transfer of ownership to the relocation company, and the relocation company to a buyer, the HOA could charge two separate fees.