The answer to the question of when are fees unreasonable is simple: when a court says they are. Fairfield Ridge Homeowners Association (association) is an HOA in Ohio. The association entered into a management agreement with Elite Management Services, Inc. (EMS) to manage the association, including providing closing certification letters to sellers just before the closing on a sale. EMS charged a unit owner $395 for these letters along with a $100 fee if they needed expedited service. The association declaration provided that a “reasonable charge” could be assessed to a unit owner for these letters. Ms. Barger viewed the $495 in charges as unreasonable and filed a class action suit against EMS. Continue Reading When Are Fees Unreasonable?
The principal purpose of 2017 Wisconsin Act 303 was to set limits on the amount of fees that an association can charge its unit owners. Those fees are the following:
- The actual cost of, but not more than $50, for providing the Sec. 703.33(1)(1m) & (2) Wis. Stat. disclosures from a Seller to a Buyer (See, Sec. 703.20(2)(a) Wis. Stat.);
- The actual cost of, but not more than $15, for providing any change to item 1 above as required by Sec. 703.33(3m) Wis. Stat. (See, Sec. 703.20(2)(a) Wis. Stat.); and
- No charge for a payoff statement, but if a second one is requested in a 2-month period, then not to exceed $25 (See Sec. 703.335(4)(a) Wis. Stat.).
The sole exception to these limits is if the association has a unit owner meeting where a greater fee is approved and the appropriate notices are provided both before and within 48 hours after the meeting. (See Sec. 703.205(2) Wis. Stat.).
There is no limit on the amount that may be charged as a transfer fee, but the new law does require that these amounts be disclosed in the Executive Summary. Continue Reading 2017 Wisconsin Act 303 – New Law on Fees and What You NEED to Do
Important Notice: Our May 10, 2018 post, Notice to Wisconsin Community Association & Property Managers, advised unit owners, boards and property managers of the three new laws that passed on April 18, 2018. In that post, we described how one of those laws provided that any association looking to charge a fee in excess of $50 for complying with the disclosure requirements of Sec. 703.33 Wis. Stat. or to charge any fee for providing the first pay-off statement to a unit owner needed to comply with the new law. (See, Sec. 703.205 Wis. Stat.). At the time, we did not advise specifically how this compliance could be achieved. We are now providing that information. Continue Reading Notice to Wisconsin Community Association & Property Managers – IMPORTANT UPDATE
As a result of the new legislation that passed, in three different bills, for each of your condominium associations you need to deal with the following:
- Disclosure Requirement Fees. If your association currently charges or intends to charge a fee for complying with some or all of the disclosure requirements under Sec. 703.33 Wis. Stat., despite the $50 language in the statute amendment, we recommend that the association do all of the following: Continue Reading Notice to Wisconsin Community Association & Property Managers