New Laws Concerning HOA (Homeowners Association)

New Law Regarding HOA Fees

Effective December 31, 2011


    Under this new law HOAs may charge a homeowner no more than $400.00 as a fee for preparing documents related to the disclosures an HOA must deliver during the sale of a home.  Additionally, the HOA may not collect this fee earlier than the close of escrow and may only charge the fee once to a homeowner for a transaction.  A.R.S.§ 33-1260 (C, D); A.R.S.§ 33-1806 (C, D); SB1149.


There has been some confusion regarding whether this new law applies to transfer fees charged by an HOA on the sale of a home. Transfer fees can be thousands of dollars, and are frequently a percentage of the sales price of the home.  Transfer fees are authorized by A.R.S.§ 33-442, which does not impose a limit on transfer fees.


The new law only specifically limits fees for HOA disclosure documents.  Therefore, there is still no limitation on the amount of transfer fees.

By:  Christopher A. Combs, Esq. ( Combs Law Group)