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13 Mar 2018 -

UPDATE: Posted on March 22, 2018

HB 410 will be up for a vote by the Senate on Friday, March 23. Please click on the link below to contact your Senator now and urge him or her to pass HB 410!


UPDATE: Posted March 20, 2018

HB 410 has passed out of the Senate Judiciary Committee unanimously. In its current form, it will cap closing letters from HOAs at $100. Next, it's headed to the Senate floor as early as this Friday for a vote - REALTORS®, get ready for a Call for Action!

UPDATE: Posted March 19, 2018

We are in the final days of the 2018 Session with only five legislative days remaining.  We are making progress on HB 410 and hope to see it pass out of committee soon.  It has been brought to our attention that a few management companies have been refusing to speak with REALTORS®, citing our lobbying efforts. Fortunately, their efforts appear to be backfiring with the Senators.

While we see this situation as short lived, in the interim several members have been making any necessary requests to management companies through the client. You may want to consult with your broker to determine if this approach is an avenue you wish to adopt.

Again, we see the ceasing of communication as a temporary, last ditch effort from the other side of this issue.  Thank you for bearing with us as we seek to resolve the overall issue on behalf of homeowners.

ALERT - HB 410 - posted March 13, 2018

The GAR Lobbyists are currently working hard on your behalf to reign in the egregious charges and price gouging by HOA management companies for closing letters. On the other side of the issue, lobbyists are working hard to make the matter confusing and spread misinformation so that their clients can continue to get by with making a killing on the backs of the homeowner.  

HB 410 is a straightforward bill aimed at preventing the abusive and egregious charges being levied by HOA management companies for closing letters.  Here are a few of the key points:

  • Most important - current law sets a cap for the closing letter at $10;

  • Charges above and beyond the $10 are neither authorized, nor addressed under current law;

  • Some management companies have been charging well above $10 simply because they have been able to get by with using the law’s silence to additional charges;

  • Some management companies have notified REALTORS® that they have been asked not to speak to REALTORS® regarding the letter (because we are lobbying to reign in the outrageous charges to the consumer).  Current law addresses the letter and requires that it be produced when requested from the homeowner.

  • The REALTORS® are lobbying in the interest of the homeowners, the other side has been profiting off of the enormous fees and wishes to continue;  

  • Some management companies have implied that HB 410 would cause HOA dues to increase.  This is a scare tactic, HB 410 addresses the closing letter only (not dues, initiation fees, or assessments).

  • The lobbyist for the management companies would have you believe that we are reducing their fee and harming them.  Again, current law caps the fee at $10.

Despite the misinformation that is making the rounds, the REALTORS® are looking to provide a clear list of what is considered part of the closing letter and to establish a fair fee for the letter that is not open for tack-on charges (production fee, handling fee, research fee).  In essence this is one of the few instances that anyone is expected to pay for someone to tell them what they owe.

This message is to keep our members informed in regards to an important issue transpiring at the Capitol.

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