Initial Contribution Fees

We recently discovered that several of the home owners associations are now charging what is called an “initial contribution fee” to buyer’s when settlement occurs. In many market places this has been a common expense for years. So far the fees have been accessed for one full quarter of association dues. Those fees are dependent upon which association and or associations your property belongs too. Read your resale certificate closely as it will be noted there. These fees are required to be added to reserve funds. As financing rules have dramatically changed, higher reserves are greatly smiled upon by underwriters!

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