HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform

Visit HOBB Forums

HOBB-Over 1M visits monthly
Daily Visitors Over 37,000
 Highest Daily 70,723

Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member

Enter Amount:
$

Who's Online
We have 5 guests online

Home Court Advantage
How the Building Industry Uses Forced Arbitration to Evade Accountability

OPINION:
Home Builder Profits will be Greater
 Pulte Legacy:
 What Pulte does not want the public to see
Pulte Clear Cut, Pulte Foundations split in two;Pulte Walls That Fall, Pulte's Tall Walls with No Foundations at all


 




Texas HOA Managemnt Charges $300.00-$500.00 for Resale Certificate
Friday, 22 April 2011

Ripoff Report: WHY IN THE HECK ARE RESALE CERTIFICATES AND TRANSFER FEES SO EXPENSIVE WHEN YOU SELL A HOME IN THE STATE OF TEXAS?
The truth of the matter is that the information in a Resale Certificate takes minutes to issue and deliver by an AGENT. Normally the Resale Certificate is sent to the title company in a form of a PDF file. There is NO copying, there is NO assembling and delivery is a mere click of a mouse. Keep in mind many AGENTS are charging $300.00-$500.00 for this service. How much is your AGENT charging?  In a nutshell, agents are doing everything wrong. Agents think that once they are hired to manage a HOA that they have inherent authority to: 1) Charge homeowners directly for fees related to resale-certificate and transfer, 2) Set the fee amount (whatever they want to charge) for the resale certificate and transfer 3) Collect the fees for their own account. 4) As a result, the respective fees have been increasing to unreasonable amounts. All of which are absolutely wrong on several levels!

WHY IN THE HECK ARE RESALE CERTIFICATE AND TRANSFER FEES SO EXPENSIVE WHEN YOU SELL A HOME IN THE STATE OF TEXAS?

YOU NEED TO READ THIS, IF YOU ARE A MEMBER OR BOARD MEMBER OF A HOMEOWNERS ASSOCIATION (HOA) IN THE STATE OF TEXAS AND YOUR HOMEOWNERS ASSOCIATION HAS HIRED AN AGENT (AGENT=HOA management company) FOR MANAGEMENT SERVICES.

BACKGROUND
In 2004 I purchased a home in an HOA community in South Austin. When I purchased the home in 2004, the HOA AGENT charged a $175.00 fee for a Resale Certificate and Transfer. When I sold the home in 2008, the HOA AGENT charged $500.00 for a Resale Certificate and Transfer. This is 185% increase over four years or a 46% yearly increase. The sad part was that the HOA board of directors had no idea why homeowners were being charged so much by the AGENT. How can this happen? A simple
explanation is that AGENTS are taking advantage of ignorant members of the HOA. In the process, AGENTS are breaking laws and making A LOT of money.

Texas residents need to be informed of this huge injustice that is occurring around the Austin, TX area and probably occurring throughout the state of Texas. There are many Agents participating in this scam that involves: 1) Conflict of interest 2) Extortion 3) Federal Tax Code violations and 4) Violating the Texas Property Code (Chapter 207); all related to RESALE CERTIFICATES and TRANSFER FEES. There are many companies that are participating in this racket and as an HOA member; you need to make sure your AGENT is following applicable Texas state statutes, Federal Tax Laws, and general business laws and ethics.

WHAT IS A RESALE CERTIFICATE?
Per the Texas Property Code (Chapter 207), a resale certificate is fifteen (15) items of information about the HOA; most of which is financial information. Information like: HOA fee assessments and frequency, operating budget, capital expenditures, amount of reserves, any pending lawsuits … etc … etc. My point being is the information in a Resale Certificate is very SIMPLISTIC. It is a mere 15 point questionnaire requiring SIMPLISTIC answers; much like a 3rd grade test. Most of the simple questions are established at the beginning of the fiscal year when the budget is prepared which is part of the AGENTS responsibility. Again, SIMPLE … SIMPLE … SIMPLE … INFORMATION!!!

The truth of the matter is that the information in a Resale Certificate takes minutes to issue and deliver by an AGENT. Normally the Resale Certificate is sent to the title company in a form of a PDF file. There is NO copying, there is NO assembling and delivery is a mere click of a mouse. Keep in mind many AGENTS are charging $300.00-$500.00 for this service. How much is your AGENT charging?

THIS IS WHAT HAPPENS WHEN YOU SELL A HOME IN AN HOA WHO IS MANAGED BY AN HOA AGENT

1. As part of a real estate contract to sell a home, there are potential fees which may be collected by an HOA for two services: 1) Resale Certificate and 2) Transfer.

2. In order for the seller to negotiate those fees with the buyer, the seller needs to know what the HOA is charging for those services. So you call your HOA president. Typically, the HOA president does NOT have a clue and refers you to the AGENT.

3. When you call the AGENT, you're SURPRISED when they charge $300.00-$500.00 (or more) for a Resale Certificate and Transfer. However, you ASSUME it's a legitimate fee and concede. You pay the fee/s and move on!

4. At closing, the AGENT directs the title company to have the fees paid DIRECTLY to the AGENT. This means the AGENT deposits the money directly into their own account!

WHAT IS THE AGENT DOING WRONG?
In a nutshell, AGENTS are doing EVERYTHING wrong. Agents THINK that once they are hired to manage a HOA that they have inherent authority to: 1) Charge homeowners directly for fees related to resale-certificate and transfer, 2) Set the fee amount (whatever they want to charge) for the resale certificate and transfer 3) Collect the fees for their own account. 4) As a result, the respective fees have been increasing to unreasonable amounts. ALL OF WHICH ARE ABSOLUTELY WRONG ON SEVERAL LEVELS!!!

1) CONFLICT OF INTEREST & IGNORING TEXAS PROPERTY CODE STATUTES: Agents imply (directly or indirectly) that they have the AUTHORITY to CHARGE and COLLECT Resale Certificate and Transfer fees DIRECTLY from home owners when an owner sells their property. Furthermore, Agents SET those fees to whatever they want; there is NO contractually agreed fee between the HOA and Agent. This is a CONFLICT OF INTEREST because the owner is a CAPTIVE audience and is FORCED to pay those fees at closing.

a. FACT 1- Based on sections 207.003 & 207.004 of the Texas Property Code, the Property Owner's Association is responsible and liable for issuing and delivering a Resale Certificate to a property owner. The Property Owners association has direct authority NOT the AGENT.
b. FACT 2- An HOA can authorize an AGENT to charge and collect on behalf of an HOA but an AGENT has NO direct authority to charge and collect from a home owner.
2) EXTORTION: Since Agents THINK they have the authority to SET the fee for resale certificates and transfer to a captive audience. Remember the captive audience is the unsuspecting owner that is FORCED to pay stated fees communicated to the title company by the AGENT. AGENTS have been increasing their fees by 25%-50% EVERY year; hence the HOA property owners have been experiencing exorbitant fees in the range of $300.00-$500.00 (or more) per sale.
a. FACT 3- The Agent completely keeps the HOA out of the loop financially, because the Agent tells the title company to make the checks out DIRECTLY to the Agent, which is clearly EXTORTION when they are establishing, charging, collecting for their own account and increasing those fees to a captive audience. In this case, there is no competitive market; no negotiation and property owners are forced to pay WHATEVER the AGENT communicates to the title company.
3) UNREASONABLE FEE & IGNORING TEXAS PROPERTY CODE STATUTES: As the AGENT continues to charge fees from a captive audience (the property owner), the fee/s have become beyond UNREASONABLE, and more like HIGHWAY ROBBERY. It takes a management company minutes to issue a Resale Certificate which is issued to the title company in PDF format yet they are charging home owners $300-$500.00 per occurrence.
a. FACT 4- Based on section 207.003.C, the Property Owner's Association may charge an owner a reasonable fee to copy, assemble and deliver a Resale Certificate.
b. This means an HOA may decide to charge a reasonable fee, which must be disclosed to its members; probably in the CC&Rs. Then the Property Owner's Association would have to determine what a reasonable fee is. Once a “reasonable fee” is determined and accepted by the Property Owner's Association they could start collecting that fee or they could authorize an AGENT to collect the reasonable fee on BEHALF of the Property Owner's Association.
c. Under Texas Property Code, to copy, assemble and deliver is NOT intellectual challenging work!! Add insult to injury, these AGENTS provide PDF files which don't include “copying” or “assembling”. “Delivery” is a mere email attachment which is why it takes minutes to issue and deliver.
4) FEDERAL TAX CODE VIOLATIONS: The Agent has the title company cut the checks directly to the Agent. There are 1099 tax code requirement for an HOA to disclose the AGENTS compensation and I can tell you that these fees TRIGGER the $600.00/year requirement to disclose this amount of compensation.
a. Based on the National average that a homeowner lives in his house about 7 years, a $300.00-$500.00 fee will amount to substantial yearly compensation; do the math.

In summary,
Homeowners Associations (HOA) in the state of Texas have the exclusive authority to charge a property owner a reasonable fee (NOT AN AGENT); an HOA is legally responsible to provide a property owner a resale certificate (NOT AN AGENT); an HOA must financially account for collected fees (NOT AN AGENT); an HOA must implement control of those fees to ensure the AGENT doesn't extort money from unsuspecting HOA members.

Stop the insanity!!!!

Anomymous
Austin, Texas
U.S.A.

http://www.ripoffreport.com/homeowner-associations/property-managment-c/property-managment-companies-i-273f2.htm
 
< Prev   Next >

 Texas, First Home Lemon Law Debated in the Nation

Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

 Beware of HOA Payment Plan! 

HOA Foreclosures Big Business 
ON THE COMMONS with Shu Bartholomew
Dr. Evan McKenzie HOA Governments

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

ATTENTION TAXPAYERS:
 
Pulte-Centex $900 MILLON Grant
Bad Guys at Countrywide Profit on Mortgage Toxins

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Arbitration Fairness Now!
Sen Feingold, Rep Johnson
Introduce Consumer Justice
 
Senate Passes Frankin
Binding Arbitration Amendment
  
   
Public Citizen Report 
Home Court Advantage
 

 (See photos) & Latest News

Judiciary & Civil Jurisprudence
 Arbitration Hearing,
Video of Homeowners
Testimony Advance to 1:55

Arbitration Bill Passes Senate
Four years to fight to get in court is not a day in Court, Jamie Leigh Jones 

 


Legislative
Watch
TEXAS ABOLISHES BUILDERS
PROTECTION AGENCY TRCC
 


Texas Regulates Homebuyers
 
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

HOBB Update Messages

Consumer Affairs Builder Complaints

 TRCC Implosion
 TRCC Shut Down
 Sunset Report

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

Perry's Gifts Keep on Talking
Sun Never Sets On Politicians Taking Homebuilder Money

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Homebuilder's Right-To-Repair Illusion

Builders Looking for Federal Handouts

How Texas Home Building Industry shaped the TRCC to regulate buyers 

SpotLight
LiveTalk Internet

Build it right the first time
An interview with Janet Ahmad

HUD's Broken System
From HUD's Deregulation to Disgrace
Did HUD Secretary Cisneros
 Mastermind Predatory Lending?

Take Action
Ban Binding Mandatory Arbitration

Send a message urging your Congressman to support all legislation banning this unfair practice

Voting Texas Style
What Lawmaker is Voting for you?

Most Read

 Give Me Back My Rights Campaign
Model State Arbitration Legislation
Fair Homebuyer Contract Model

Bad Binding Arbitration Experience?
conttribute@hobb.org
 or call 1-210-402-6800

NCPIRG
Homebuyers' Bill of Rights
Tips for a Better Built Home and to Protect Your Investment

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

Homebuilding Texas Style
And the walls came
tumblin' down

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 

Texas Homebuyers
Fight for Rights

TRCC Abolish or Fix
or Pass Home Lemon Law
or
Homebuyers Bill of Rights

POLICYHOLDERS OF AMERICA POLL
82% would not vote back in office any legislator, regardless of party, that is soft on bad homebuilders?

REWARD
MOST WANTED

ARIZONA REGISTRAR OF CONTRACTORS
Have you seen any of these individuals

Pulte Homeowner Survey
Warranty & Mortgage Experience
 Click to participate

Tort Reform Feature
Texas Monthly
 Hurt? Injured? Need a Lawyer? Too Bad!

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

Letters to the Editor
Write your letters to the Editor

Homeowner Websites

top of page

© 2014 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.