Recent sale spurs questions regarding resale transfer fee

Sun City – When John Cox, a former resident of Neighborhood 12 in Sun City, recently sold his home, he paid more for the transaction than was legally required.

He paid a resale transfer fee, even though his home was exempt from the fee because of its location and the date it was built.

He emailed information about his experience to the Sun Day, and it revealed a situation in the Declaration documents that Cox’s attorney may have overlooked. This mistake may also have affected other homeowners selling their Sun City homes.

“The resale fee shall be charged to the grantor of the dwelling unit, shall be payable by grantor or grantee, as their contract provides, to the association at the closing of the transfer,” the Declaration language reads.

In 2002, shortly after Del Webb Corporation and Pulte Homes merged, a home resale transfer fee was added to the supplement to the Sun City Declaration documents by Del Webb. The fee is applicable in all neighborhoods added to Sun City properties after 2002. This means the fee applies to home sales in Neighborhoods 1C, 14, 16-31, and 33-41.

In essence, the fee applies today to all Pulte-built homes. Del Webb-built homes are exempt.

The fee is 1/3 of one percent of the gross selling price of the dwelling unit, including all improvements, upgrades, and premiums, according to the Declarations language. On a $250,000 home, the fee would be about $833.

Resale fee income is used to help meet the general operating needs of the association.

“Resale fees may be used to fund operating and maintenance costs for recreational facilities, common areas, open space preservation, and all other funding needs for operating the association,” according to the documents.

Cox’s email warns owners to make sure their attorneys and the title company are aware of this distinction before the sale of their home goes to closing.

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