Park City Property Guide - Park City and Deer Valley Real Estate News

Transfer Fees in Park City Real Estate - What You Need To Know

When helping buyers find real estate in Park City and Deer Valley, we’re frequently asked about transfer fees.  Many out of state buyers are used to seeing these fees applied in real estate transactions in their home state – charged by municipalities, counties or the state.

In Utah and the Park City area, we most commonly have transfer fees charged by Homeowners Associations (HOA), or the Master Homeowners Association (MHOA), if there is one.  These fees are also sometimes referred to as HOA Reinvestment Fees, and Change of Ownership Fees.

In Park City and Deer Valley, we have many HOAs that are located within a MHOA.  For example, there are several condominium communities located in Empire Pass, each has their own HOA, within the Empire Pass MHOA.  The Empire Pass MHOA charges a 1% transfer fee for all real estate transactions in Empire Pass, located within the Empire Pass MHOA.  Some of the individual HOAs may also charge a transfer fee, in addition to the MHOA fee. 

The transfer fees are becoming more common, as many HOAs see the sales of property as an opportunity to add to their reserves.  The fees vary greatly – from a nominal fee of less than one hundred dollars, all the way up to 2% of the sales price of the property.  With the high prices in our communities, these fees can be substantial. 

A couple of steps are taken to make buyers and sellers aware of these fees: 

       1. The existence of the fees and amount should be disclosed in the property listing. 

2.  The party responsible for payment is negotiated in the standard Real Estate Purchase Contract.  See below.  *Builders and developers will have their own contract, which almost always state the buyer is responsible for payment of any transfer fees.
   
   

      3. During the buyer's due diligence process, there are opportunities to verify if there is a fee, and the      amount.

Who usually pays - buyer or seller?  In a resale transaction,  it's negotiable and varies, but it’s important for buyers and sellers to be aware of the fee, and negotiate with the amount in mind. Occasionally, HOAs that have existed for decades will implement a transfer fee, and an owner / seller isn’t aware of it.   

Working with an experienced,. local Realtor can help you avoid surprise expenses.   

Questions about buying or selling real estate in Park City, Deer Valley or surrounding communities?  Contact Quinn Eichner at 435-640-1854 or Dena Eytan at 435-659-9347 - or use the form below to reach out.  We're local, Park City Realtors with decades of experience, and are happy to help!