Post by Admin on Jul 4, 2017 11:11:31 GMT -5
Members who are using a title company to close a home sale are reminded that an estoppel fee cannot lawfully be collected by the Title Company at closing for an estoppel certificate prepared by the HOA. The LAW will increase the allowable estoppel fee to $250 (homeowner was charged $100 unlawfully) but the law requires that the HOA must have a written resolution, adopted by the Board and incorporated into the official record, permitting the HOA and/or management company to collect a fee.
As it stands now, there is NO such written resolution and the money being collected is done so without complying with the law. The Title Company does not know this and is not involved. It is a matter between Owners and their HOA. SLohA get no part of the fee collected. It is just more money for the Management Company for...advising the Title Company that you are up to date with assessments.
BTW. the Title Company also told the Seller that they owed $4.98 on the estoppel certificate. The Seller had no idea what this was for and neither did the Title Company. SLohA never advised the owner that they had an unpaid amount on account. Seller apparently never asked or checked their account.
So this is a warning to all that you might be in for a nasty surprise that could upset your home closing plans unless you keep a watchful eye on what SLohA is doing. Do your due diligence BEFORE the closing table! Hold SLohA accountable for complying with the LAW on estoppel fees!
As it stands now, there is NO such written resolution and the money being collected is done so without complying with the law. The Title Company does not know this and is not involved. It is a matter between Owners and their HOA. SLohA get no part of the fee collected. It is just more money for the Management Company for...advising the Title Company that you are up to date with assessments.
BTW. the Title Company also told the Seller that they owed $4.98 on the estoppel certificate. The Seller had no idea what this was for and neither did the Title Company. SLohA never advised the owner that they had an unpaid amount on account. Seller apparently never asked or checked their account.
So this is a warning to all that you might be in for a nasty surprise that could upset your home closing plans unless you keep a watchful eye on what SLohA is doing. Do your due diligence BEFORE the closing table! Hold SLohA accountable for complying with the LAW on estoppel fees!
720.30851 Estoppel certificates.—Within 15 days after the date on which a request for an estoppel certificate is received from a parcel owner or mortgagee, or his or her designee, the association sH all provide a certificate signed by an officer or authorized agent of the association stating all assessments and other moneys owed to the association by the parcel owner or mortgagee with respect to the parcel. An association may charge a fee for the preparation of such certificate, and the amount of such fee must be stated on the certificate.
(1) Any person other than a parcel owner who relies upon a certificate receives the benefits and protection thereof.
(2) A summary proceeding pursuant to s. 51.011 may be brought to compel compliance with this section, and the prevailing party is entitled to recover reasonable attorney’s fees.
(3) The authority to charge a fee for the certificate sH all be established by a written resolution adopted by the board or provided by a written management, bookkeeping, or maintenance contract and is payable upon the preparation of the certificate. If the certificate is requested in conjunction with the sale or mortgage of a parcel but the closing does not occur and no later than 30 days after the closing date for which the certificate was sought the preparer receives a written request, accompanied by reasonable documentation, that the sale did not occur from a payor that is not the parcel owner, the fee sH all be refunded to that payor within 30 days after receipt of the request. The refund is the obligation of the parcel owner, and the association may collect it from that owner in the same manner as an assessment as provided in this section.
(1) Any person other than a parcel owner who relies upon a certificate receives the benefits and protection thereof.
(2) A summary proceeding pursuant to s. 51.011 may be brought to compel compliance with this section, and the prevailing party is entitled to recover reasonable attorney’s fees.
(3) The authority to charge a fee for the certificate sH all be established by a written resolution adopted by the board or provided by a written management, bookkeeping, or maintenance contract and is payable upon the preparation of the certificate. If the certificate is requested in conjunction with the sale or mortgage of a parcel but the closing does not occur and no later than 30 days after the closing date for which the certificate was sought the preparer receives a written request, accompanied by reasonable documentation, that the sale did not occur from a payor that is not the parcel owner, the fee sH all be refunded to that payor within 30 days after receipt of the request. The refund is the obligation of the parcel owner, and the association may collect it from that owner in the same manner as an assessment as provided in this section.