Transfer fee
Also called: Resale fee; capital contribution
A transfer fee is a charge collected when a home in the association changes hands, normally paid at closing. Two different charges go by the name. One is an administrative fee for the work of a sale: updating the owner roster, issuing resale documents, setting up the new owner's account. The other is a capital contribution or working-capital fee, a set amount or a multiple of monthly dues paid into the operating or reserve fund.
The authority to charge either should appear in the CC&Rs or a recorded resolution, and many states regulate them — capping document and estoppel fees, requiring disclosure, or restricting private transfer fees payable to third parties.
Whether the buyer or seller pays is negotiated in the purchase contract, but the association should state the amount on the estoppel certificate so nothing is missed at closing.