Homeowner's association fees, or HOA fees can sometimes pose financial surprises at closing.
If the property you are purchasing or selling is a condominium or within a neighborhood association, they may charge transfer fees, document fees, resale certificate fees*, upfront dues, capital contributions, or any combination of those, which must be paid at closing.
Escrow will automatically request information pertaining to this as part of the closing process from the Homeowner's Association and then charge the Buyer or Seller through closing, depending on who's responsibility the fee is. That's where it gets slightly more complicated...
If the property is in the Seattle area or Western Washington and a NWMLS (Northwest Multiple Listing Service) purchase and sale contract is being used, the Optional Clauses Addendum, form 22D stipulates whether the Buyer or Seller will pay these fees, if the HOA does not indicate who is to pay them on their HOA Demand Statement.
Sometimes fees can be illusive and the Homeowner's Association doesn't clearly define who is to pay them. It's always a great idea to do some advance research to find out what the HOA costs may be. This can be done via quick call (usually) to the HOA manager or treasurer.
Stop into one of our offices in Woodinville, North Seattle, or Everett or contact our office at 425.745.1952 with your HOA or closing questions