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Selling condo, have purchase agreement. Now escrow co. tell…

Selling condo, have purchase...

Selling condo, have purchase agreement. Now escrow co. tell us we need to pay $$$ for Statement of Account and another $$$ for Covenant Compliance Inspection. I am suspicious of these two fees.

Lawyer's Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?

Continued: The HOA Doc Fees - which were going to be $790, are being waived for us. Question - are these two items above included in the waived $790 HOA Doc Fee and they are just calling them different names to milk more $$$ out of us? We have not paid this so called upfront $$$. Escrow first said it was $530 for fees, next day changed it to $345, puzzling. These two fees are not on our closing statement estimates.

Lawyer's Assistant: Where is the condo located?

Palm Springs CA, however we are Nevada residents.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I tried to make it clear, what do you think?

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Answered in 11 minutes by:
12/21/2017
legalgems
legalgems, Arbitrator
Category: Real Estate Law
Satisfied Customers: 13,965
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Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

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In 2011 laws were passed to protect buyers as for the HOA Doc fees as the HOAs were charging inflated prices in many instances. So they enacted a provision that is codified in the Davis Sterling Act which requires the HOA to not charge more than the actual cost of producing and delivering the HOA transfer docs.

Unfortunately there is not much teeth in the legislation since it only provides for a $500 penalty plus the award of legal fees;

this is codified here:

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CIV&division=4.&title=&part=5.&chapter=4.&article=2.

The Statement of Account is typically the escrow agent's fee;

the Inspection for the Covenant Compliance is to ensure no covenants are being violated.

Neither of these are included in the documents that are listed in the statute so they are not included in the HOA doc fees.

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Customer reply replied 8 months ago
The escrow charges are $550 and included in our Seller's Closing Estimate
Customer reply replied 8 months ago
The escrow charges are $550 and included in their Seller's Closing Estimate.

Then one should inquire as to what that specific line item is as that is normally the escrow agent's fees. It may be a duplicate.

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legalgems, Arbitrator
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