The Colorado Legislature is embroiled in a controversy over ‘transfer fees’, a mysterious item that appears on closing papers when a homeowner is trying to sell his property.
What’s a transfer fee? It’s a mandatory fee the seller has to pay. It’s not related to any specific kind of work. It was recently outlawed on all real estate sales EXCEPT those in Homeowners associations. It can range from the hundreds…even into the thousands of dollars, and there are no state controls. A transfer fee doesn’t benefit the HOA, it just drops into the pockets of HOA management companies. Pure profit.
When CAI lawyers were asked, “Why do you charge these fees? The answer was stunning, “Because we can!” That kind of unmitigated arrogance is beyond appalling. Why do you steal cars? Because we can. Why do you steal little old ladies’ retirement money? Because we can. And legislators turn their heads the other way! Unbelievable.
With that in mind, here’s a recent blog from ColoradoHOAForum.com
First let’s thank Leslie Stevens, the victim of a transfer fee of over $1,000, for contributing to the news story and Channel 4 News (KCNC, Denver).
Transfer fees when real estate documents were exchanged are ILLEGAL in Colorado EXCEPT when a Homeowners Association is involved. If they’re so illegal for all other homes, what’s the difference with HOA homes? In a word, NOTHING!
Note, once again the CAI never attempts to explain what these costly, laborious, and time consuming tasks are that require hundreds to over one thousand dollars in transfer fees only “that is the way it is” (because of them). They got away with this by slipping an exception into SB 11-234 and now again in 2014 with HB 14-1254 by actually crafting this Bill to ensure, if passed, nothing will change in picking the pockets of home sellers.
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Because this is a breaking story in Colorado, there’s more to come on the subject tonight. We’ll post on NeighborsAtWar.com