HOA Transfer Fees: What You Need to Know

April 17, 2023

  HOA Transfer Fees What You Need To Know If you’re looking to buy or sell a home that’s part of a homeowners association (HOA), you may have heard of HOA transfer fees. In this blog post, we’ll explain what these fees are, who pays for them, and how much you can expect to pay. We’ll also cover ways to avoid these fees and any legal protections that buyers and sellers may have regarding HOA transfer fees.

What is an HOA Transfer Fee?

An HOA transfer fee is a one-time fee that’s charged by the homeowners association (HOA) when a property changes ownership. The fee is usually paid by the buyer, but sometimes the seller may cover it as part of the closing costs. The purpose of the fee is to cover the administrative costs associated with transferring ownership of the property and updating the HOA records.

What does the HOA transfer fee cover?

The specific items that the transfer fee covers can vary from one HOA to another, but they typically include:
  • Administrative costs associated with transferring ownership
  • Updating the HOA records to reflect the new owner
  • Providing the new owner with information about the HOA and its rules and regulations
  • Verifying that the property is in good standing with the HOA, including any outstanding dues or violations

Who Pays for HOA Transfer Fees?

Who Pays for HOA Transfer Fees As mentioned earlier, it depends. The buyer usually pays for the HOA transfer fee. However, in some cases, the seller may agree to pay it as part of the closing costs. This is something that can be negotiated between the buyer and seller during the sales process. It really is market dependent, whether we are in a seller’s market or buyer’s market – who wants to close the deal the most?

How much is an HOA transfer fee?

The amount of the HOA transfer fee can vary widely depending on the HOA and the location of the property. Typically, HOA transfer fees range from a few hundred dollars to a few thousand dollars. It’s important to note that this fee is in addition to the regular HOA dues that the new owner will be responsible for paying.

How to Avoid HOA Transfer Fees?

While it may not be possible to completely avoid HOA transfer fees, there are a few things that buyers and sellers can do to minimize them. For example:
  • Negotiate with the seller to cover the fee as part of the closing costs
  • Ask the HOA if they offer any discounts or waivers for first-time buyers or sellers
  • Consider purchasing a property that’s not part of an HOA, if possible

Are there any legal protections for buyers and sellers regarding the HOA transfer fee?

In some states, there are legal protections for buyers and sellers regarding the HOA transfer fee. For example, in Arizona, HOA transfer fees are capped at $400. However, some communities or homeowners associations may charge other fees like Capital Improvement Fees, etc., which can increase the costs at closing time. Buyers and sellers should check with their state’s real estate laws to see if there are any similar protections in place.


HOA transfer fees are an additional cost that buyers and sellers should be aware of when buying or selling a property that’s part of an HOA. While it may not be possible to avoid these fees altogether, there are ways to minimize them or get the other party to pay for them.

Heywood Community Management specializes in homeowners' association (HOA) management in Arizona and surrounding areas such as Gilbert, Chandler, Tempe, Mesa, Queen Creek, Scottsdale, Phoenix, and more. Heywood HOA Management has actively been a part of Arizona's Real Estate market since 1933. With a single focus on community association management, Heywood Community Management is dedicating its resources to raising the community management standard of quality.

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