Sale and Lease Transfer Fee’s for Condominium and
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Last updated: Wednesday, February 20, 2008

In the event of a sale in a planned community, the mortgage company is required to collect an approval from the association as part of their escrow process. However, approval of a sale is not required if the community declaration, articles or bylaws do not provide for. Along with the sale approval, a current updated commonly asked question & answer form is required which should be attached to the rules & regulations and documents.

If the authority to do so appears in the declaration or bylaws, the association should also approve leases. Security deposits up to one months rent can be collected to protect against damages to the common property. Again, check the applicable documents.

For processing and administrative fees, the association can charge for sale/lease forms, up to the amount stated in the community documents. However, if the lease is a renewal from the same party, then no charge can be applied. 

If any of these provisions are not stated, then it is time to update those rusty old community documents. See, “How to Amend Community Documents”.  For supporting documents, click here.

718.112  (i)  Transfer fees.–No charge shall be made by the association or any body thereof in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless the association is required to approve such transfer and a fee for such approval is provided for in the declaration, articles, or bylaws. Any such fee may be preset, but in no event may such fee exceed $100 per applicant other than husband/wife or parent/dependent child, which are considered one applicant. However, if the lease or sublease is a renewal of a lease or sublease with the same lessee or sublessee, no charge shall be made. The foregoing notwithstanding, an association may, if the authority to do so appears in the declaration or bylaws, require that a prospective lessee place a security deposit, in an amount not to exceed the equivalent of 1 month’s rent, into an escrow account maintained by the association. The security deposit shall protect against damages to the common elements or association property. Payment of interest, claims against the deposit, refunds, and disputes under this paragraph shall be handled in the same fashion as provided in part II of chapter 83.

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