Who pays for HOA resale and estoppel documents?

The seller almost always pays, and in most states the money goes to the Management Company rather than the association. That is legal and normal, and it is also the single most misunderstood revenue line in community management.

Several states cap what can be charged. Florida caps the estoppel certificate fee by statute and sets a shorter deadline for delivery; Texas regulates resale certificates and their fees; California limits what can be charged for the document package under the Civil Code. Where there is no cap, charges of $200 to $500 per closing are common, and rush fees on top of that.

Two questions to ask in a proposal. Who keeps the resale and estoppel revenue — the association or the company. And what is the full schedule including rush, update, and lender questionnaire fees.

Some Boards negotiate a split, and a few negotiate the revenue back to the association entirely. Neither is unusual to ask for. What you want to avoid is finding out at the first closing that a fee schedule you never saw is being charged to your owners under your association's name.