Most homeowners know about HOA dues.
What catches people off guard are all the other fees that can show up when a house is bought or sold.
I've lived in Falls at Imperial Oaks since 2008 and serve on the HOA Board, so I see these fees from both the homeowner side and the association side. One of the biggest surprises for buyers and sellers is realizing there are costs beyond the annual dues that only show up when a home changes hands.
Annual Dues vs. Closing Fees
HOA costs usually fall into two categories.
The first is your annual assessment. That's the amount you pay each year while you own the home.
The second category only appears when a property is sold. These fees are less familiar because most people only deal with them when they buy or sell. By the time they show up on a settlement statement, many homeowners are seeing them for the first time.
Common HOA Fees at Closing
The most common fee is the resale certificate.
Texas law requires the association to provide information about the property and the community before a sale can close. The resale certificate includes details about the association's finances, any outstanding balance on the property, and whether there are known deed restriction violations.
Additional fees vary by community and management company.
They may include:
- Transfer fees
- Statement of account fees
- Resale inspection fees
- Capital contribution fees
- Community enhancement fees
- Reserve fund contributions
- Operating fund contributions
- Welcome fees
Some of these are flat fees. Others may be based on the sales price of the home. That's where buyers and sellers can be caught off guard.
Why Capital Contributions Surprise People
Capital contributions, foundation fees, and community enhancement fees can be especially confusing because different communities use different names.
In simple terms, these fees are usually collected when a property sells and are used to support the association's reserves, future improvements, or long term community needs.
The important thing to know is that some communities charge them and some do not.
When they are tied to the sales price, the amount can be much higher than buyers or sellers expect.
Who Pays These Fees?
It depends on the contract.
In many transactions, the seller pays for the resale package. Other fees, such as transfer fees or capital contributions, may be paid by the buyer or seller depending on how the agreement is written.
Nothing should be assumed.
These costs need to be reviewed early so both sides understand what they are agreeing to before closing.
The Cost Most Buyers Overlook
Ironically, the biggest long term expense usually is not the closing fee package.
It is the annual dues.
A community with more amenities, larger common areas, gated sections, lakes, trails, private streets, or additional maintenance responsibilities may have higher annual assessments.
Some neighborhoods also have layered assessments. Instead of one simple HOA fee, there may be a master association fee plus a separate section, street, lake, or maintenance assessment.
That is why the number you see advertised may not always tell the full story.
You need to ask what is included.
What I Tell Buyers and Sellers
Before you make an offer, ask for more than just the annual HOA dues.
You should also understand:
- What the resale package costs
- Whether there is a transfer fee
- Whether there is a capital contribution or enhancement fee
- Whether there are separate section assessments
- Whether there are any special assessments
- Which fees are buyer paid, seller paid, or negotiable
Every HOA is different. Fee schedules can change, boards can adjust assessments, and management companies may update administrative charges.
Always verify the current amounts with the association, management company, or title company before closing.
HOA fees are not automatically good or bad. They are simply part of understanding the real cost of owning a home in a particular community.
The more you know before you are under contract, the fewer surprises you will have when it is time to close.
