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4575 - 4580 Transfer Fee

SECTION 4575-4580

Transfer Fee

4575.  Except as provided in Section 4580, neither an association
nor a community service organization or similar entity may impose or
collect any assessment, penalty, or fee in connection with a transfer
of title or any other interest except for the following:
   (a) An amount not to exceed the association's actual costs to
change its records.
   (b) An amount authorized by Section 4530.

4580.  The prohibition in Section 4575 does not apply to a community
service organization or similar entity, or to a nonprofit entity
that provides services to a common interest development under a
declaration of trust, of either of the following types:
   (a) An organization or entity that satisfies both of the following
   (1) It was established before February 20, 2003.
   (2) It exists and operates, in whole or in part, to fund or
perform environmental mitigation or to restore or maintain wetlands
or native habitat, as required by the state or local government as an
express written condition of development.
   (b) An organization or entity that satisfies all of the following
   (1) It is not an organization or entity described by subdivision
   (2) It was established and received a transfer fee before January
1, 2004.
   (3) On and after January 1, 2006, it offers a purchaser the
following payment options for the fee or charge it collects at time
of transfer:
   (A) Paying the fee or charge at the time of transfer.
   (B) Paying the fee or charge pursuant to an installment payment
plan for a period of not less than seven years. If the purchaser
elects to pay the fee or charge in installment payments, the
organization or entity may also collect additional amounts that do
not exceed the actual costs for billing and financing on the amount
owed. If the purchaser sells the separate interest before the end of
the installment payment plan period, the purchaser shall pay the
remaining balance before the transfer.

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