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Private transfer fees are a rip off
HOA’s and Transfer Fees for Colorado Springs Townhomes
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One of my pet peeves is the amount of money HOA’s charge to potential home sellers and home buyers for transfer fees and status letters. I 
recently had a closing where the status transfer fee cost $350.00 for a home in Colorado Springs that was governed by a HOA. Sounds to me that I should manage an HOA, as it probably took them 15 minutes to do the status letter, and they charged $350.00. Essentially every time a property is sold, the private transfer fee must be paid.
There currently is a bill in the Colorado legislature that looks like it is going to address these fees, it’s Bill SB 234; which would change these charges. I’ve received conflicting information on what the bill will and will not allow but it does look like it will only be for covenants recorded on or after July 1, 2011.
These private transfer fees are typically paid by the seller, or split by the seller and the buyer, and is typically a a fixed amount. The original property owner (which could have been a real estate developer) records a covenant subjecting the property to a private transfer fee. As long as the covenant is in place, this private transfer fee must be paid.
One of the problems with these transfer fee is that they are often times hidden; and don’t surface until a couple of days before the closing. It does look like the bill will still allow management companies to charge a fee related to work performed by the management company in relation to the conveyance of a unit.
Regardless of what it does or does not cover, it’s still a step in the right direction.
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Kathy (719-287-1049) KTorline@msn.com
Signs of Stability In the Colorado Springs Townhome Market
Colorado Springs Townhomes
Market update for September 2009
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The Colorado Springs Townhome market continues to be a BUYERS Market, as there is currently an 8.1 month of supply of homes on the market, but the supply of townhomes on the market continues to decline, which is a sign of stability. A 6 month supply of houses on the market is considered a “NEUTRAL MARKET”. 819 townhomes have been sold in 2009 vs. 869 for the same period in 2008; a decrease of 6%. Average Pricing has continued to decline from 2009 to 2008.
