Beware of HOAs charging excessive document fees. How to save your money….

CAR.org – Bundling’s Not Always Best! Earlier this month, Gov. Brown signed AB 771 into law, preventing home buyers in common interest developments (CID), such as condominiums or townhomes, from being charged excess document fees. 
Homeowner associations (HOAs) are required to provide specific documents to prospective purchasers of homes in a CID. Current law requires that this information come from the HOA and prohibits it from charging fees in excess of what is “reasonable,” not to exceed the actual cost of processing and producing these documents.  HOAs generally have provided the documents for approximately $75 to $250. Increasingly, HOAs have been delegating document preparations to third party vendors or contractors who, under a 2007 court decision, are exempt from this fee limitation. This delegation of responsibility by HOAs sometimes resulted in home purchasers being forced to pay additional fees, as much as $1,000, for other documents which were “bundled” with the required documents. AB 771 addresses this situation by specifying that only fees for the required documents may be charged when such documents are provided, effectively prohibiting any “bundling” of fees for other documents with these fees.
Contact Regina Singh at 714-883-5205 for more information.

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