Closing Costs – Who Pays and How Much?
Part 3 – HOA Related. If there is a homeowners association, the dues – whenever collected (monthly, annually, etc.) will be prorated between buyer and seller. If there is a transfer fee charged by the HOA, it is a negotiable item under the AAR contract, so either party may pay. Payment of special assessments, which can be a major expense, are also negotiable under our AAR contract form. The seller pays for the fee charged by the HOA for supplying information to the buyer by law and under the contract. Past due fees and assessments are the seller’s responsibility, and typically are paid off from the seller’s funds at close of escrow.