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Transfer Fees – Equal Application to Owners and Tenants

Posted by Bradley Schuber | Nov 04, 2013 | 0 Comments

Associations are allowed to charge transfer fees that they incur when residents move in or move out of the community.  However, transfer fees cannot be more than what is necessary to cover an association's costs, and in no event are they meant to generate a profit for an association.  A typical example of a transfer fee might be costs incurred with updating an association's records.  

However, if an association adopts a rule regarding transfer fees, the rule should apply equally to both resident owners and an owner's tenants alike.  The reasoning behind this is twofold.  First, the costs associated with a resident Owner, as opposed to an Owner's tenant, moving in or moving out of a community are the same or similar in nature.  Thus, it is difficult to justify charging one and not the other.

Second, a rule which applies to both equally is more consistent and less subject to challenge by the membership. As a result, if an association chooses to adopt a rule of this type, it should make the rule equally applicable.

About the Author

Bradley Schuber

Senior Associate Practice Areas: Community Association Counsel Construction Litigation Civil Litigation Brad Schuber is a Senior Associate with the Kriger Law Firm, APC, and is licensed to practice law in the states of California and New York. He is also admitted to practice in the United State...

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