Arbitrary charge by HOA

[Goodfella]

What is the name of your state (only U.S. law)? TN

We pay about $60 per year for our homeowners association dues. It only about 45 homes, mostly to keep the grass cut in the common areas.
We found out recently that the president and vice president of the HOA have been calling real estate agents of houses that are for sale in the neighborhood and telling them that the new owners are to pay $250 to the HOA as part of the closing. There has never been any notification to the homeowners about this.

Is this legal?What is the name of your state (only U.S. law)?

 

[JETX]

Is this legal?

Telling them or actually collecting??
If they are actually sending a bill in that amount and collecting it, it sounds like it could be fraud.

 

[HomeGuru]

Further, are there any minutes of Board meetings reflecting Board approval to charge the $250 to new owners for HOA dues or whatever they are calling it.

 

[IC_deLight]

You will find that one of the new scourges in HOA-land is "transfer fees". In some areas of the country these fees are several percentage points of the sales price of the house.

Can't say whether this is the case in Tennessee, but a trade-lobby group made up of HOA attorneys and HOA management companies has been pursuing authorization for transfer fees in state after state. The fee might be paid to the HOA but is often paid to the management company under the pretext of being paid to the HOA.

The amount you refer to sounds like a "transfer fee" is being imposed.

Don't know where Tennessee is in the devolution of home ownership but other charges these organizations are imposing at sale include "entry fees", "transfer fees", "certificate of compliance fees", "resale certificate fees", etc. Generally it's whatever they think they can get away with.

I'm curious as to whether your HOA has a management company or not and whether you have access to the records of the HOA or whether such access is being denied.

 

[Zigner]

You will find that one of the new scourges in HOA-land is "transfer fees". In some areas of the country these fees are several percentage points of the sales price of the house.

Can't say whether this is the case in Tennessee, but a trade-lobby group made up of HOA attorneys and HOA management companies has been pursuing authorization for transfer fees in state after state. The fee might be paid to the HOA but is often paid to the management company under the pretext of being paid to the HOA.

The amount you refer to sounds like a "transfer fee" is being imposed.

Don't know where Tennessee is in the devolution of home ownership but other charges these organizations are imposing at sale include "entry fees", "transfer fees", "certificate of compliance fees", "resale certificate fees", etc. Generally it's whatever they think they can get away with.

I'm curious as to whether your HOA has a management company or not and whether you have access to the records of the HOA or whether such access is being denied.

So, what advice did you actually have for the OP?