Article 3Transfer Fee

Section § 4575

Explanation

This law states that, with certain exceptions, homeowner associations or similar groups can't charge you extra fees when you transfer a property title. The only fees allowed are those that cover the actual cost for the association to update its records or those permitted by another specific law.

Except as provided in Section 4580, neither an association nor a community service organization or similar entity may impose or collect any assessment, penalty, or fee in connection with a transfer of title or any other interest except for the following:
(a)CA Civil Law Code § 4575(a) An amount not to exceed the association’s actual costs to change its records.
(b)CA Civil Law Code § 4575(b) An amount authorized by Section 4530.
transfer fees title transfer homeowner association fees property title assessment limits penalty collection record change costs community service organization Section 4530 costs to change records real estate transaction fees association charges
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 4580

Explanation

This law explains that the rule against certain fees in Section 4575 doesn't apply to specific nonprofit or community service organizations. For an exception, an organization had to be created before February 20, 2003, and must engage in environmental work like wetland restoration as required by the government. Alternatively, if a group isn't covered by the first exception, it must have been set up, and it must have received fees before January 1, 2004. For sales after January 1, 2006, such organizations must offer buyers the choice to pay any applicable fees immediately or through installments over at least seven years. Buyers who choose installments must settle any remaining fees when selling their property before the plan ends.

The prohibition in Section 4575 does not apply to a community service organization or similar entity, or to a nonprofit entity that provides services to a common interest development under a declaration of trust, of either of the following types:
(a)CA Civil Law Code § 4580(a) An organization or entity that satisfies both of the following conditions:
(1)CA Civil Law Code § 4580(a)(1) It was established before February 20, 2003.
(2)CA Civil Law Code § 4580(a)(2) It exists and operates, in whole or in part, to fund or perform environmental mitigation or to restore or maintain wetlands or native habitat, as required by the state or local government as an express written condition of development.
(b)CA Civil Law Code § 4580(b) An organization or entity that satisfies all of the following conditions:
(1)CA Civil Law Code § 4580(b)(1) It is not an organization or entity described by subdivision (a).
(2)CA Civil Law Code § 4580(b)(2) It was established and received a transfer fee before January 1, 2004.
(3)CA Civil Law Code § 4580(b)(3) On and after January 1, 2006, it offers a purchaser the following payment options for the fee or charge it collects at time of transfer:
(A)CA Civil Law Code § 4580(b)(3)(A) Paying the fee or charge at the time of transfer.
(B)CA Civil Law Code § 4580(b)(3)(B) Paying the fee or charge pursuant to an installment payment plan for a period of not less than seven years. If the purchaser elects to pay the fee or charge in installment payments, the organization or entity may also collect additional amounts that do not exceed the actual costs for billing and financing on the amount owed. If the purchaser sells the separate interest before the end of the installment payment plan period, the purchaser shall pay the remaining balance before the transfer.
community service organization nonprofit entity common interest development environmental mitigation wetlands restoration native habitat maintenance predicate date February 20 2003 government requirement transfer fee payment options installment payment plan fee collection billing costs financing costs property transfer
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)