Property developer “gotcha’s” – Have you read your HOA CCRs lately?

Does your HOA have them?

A little thing like a “capital recovery fee” is planted in the covenant homebuyers agree with upon acquiring a property in a subdivision with homeowner’s association CCRs.

These fees are established by clauses in subdivision covenants that require sellers to pay a percentage (often 1%) to the original developer every time the property changes hands for a certain length of time (often 99 years).

Does your state outlaw them? If not, have you written your State Rep or Senator?

Source: WSJ, 7-31/8-1-2010, page A3 (Home Resale Fees under Attack).

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