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Homeowners Associations Management Companies Increase Fees by 325% to Home Sellers

July 9, 2007 by Danilo Bogdanovic  
Filed under Seller Resources

Virginia House Bill 2016 went into effect on July 1, 2007.  Among other things, the bill allows management companies of Homeowners Associations to increase the fee they charge to provide a resale disclosure document to a home seller from a maximum of $100 to $325.  Almost all of the associations in Loudoun County use the services of a management company, so this price increase will effect a majority of home sellers in our area.

The full bill can be found here:  HB 2016

In a nutshell, what has happened is the lobbyists for the association management companies were able to convince our elected officials that the cost to make some copies and drive by and inspect the exterior of a home somehow leaped from $100 to $325.  And not only that, they can send the documents over the internet so the cost of the copying actually went down. 

So why is it that it now costs 325% more to do the same thing they did for $100 just one week ago?

So to sum up what the our state legislators and officials have done for home sellers in the last couple of months:

1.  Increased the property tax rate.

2.  Allow for the increase of the grantors tax by 400%.

3.  Increase the liability of the seller when selling a home.

4.  Increase the fee for resale disclosure documents.

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