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HOA Transfer Fees: What are they & Who pays them
Selling a home within an HOA involves unique considerations, including transfer fees, which play a vital role in the closing process and vary depending on the community’s governing documents.
Each association is different, and its governing documents drive the HOA transfer fees collected at the close of escrow.

Examples of fees that could be charged at the closing are:
Working Capital/Initial Capital Contribution/Community Enhancement Fee
- The association collects this part of the transfer fee and deposits it into its operating account for the board’s use. If the governing documents do not require a reserve fund fee, the board often designates the working capital fee to fund reserves. The CC&Rs or a board-adopted resolution specifies the amount collected. The buyer typically pays this fee at closing
Reserve Fund Fee
- The association collects this fee to fund the reserve account. It supports the maintenance and replacement of capital improvements outlined in the CC&Rs. The association deposits the fee into the reserve account for future use. The Board of Directors hires third-party vendors to identify assets and develop funding strategies to maintain them. The buyer typically pays this fee.
HOA Transfer Fees
- The association collects this fee, and the board of directors decides how to use it. Governing documents grant the board this authority. The board may allocate the fee to reserves or the operating account. In some states, the fee offsets the cost of updating owner records. The buyer typically pays this HOA transfer fee.
Resale Disclosure Fee/Statement of Account Fee/Certificate of Assessment
- The managing agent typically collects this fee, with the amount determined by the management contract negotiated by the board. State statutes often set the fee amounts. The seller usually pays this fee.

The fees listed above do not count as advance payment of assessments and are not refundable for future property sales.
While HOA transfer fees may initially seem complex, understanding their purpose and how they are allocated can simplify the process and reduce surprises during closing. Whether negotiated between buyer and seller or dictated by the HOA’s governing documents, these fees ensure the smooth transition of ownership and the continued financial health of the community—an investment that benefits all residents.