INITIATION FEES
An initiation fee is a one-time capital contribution paid
to the association when a property transfers from one
owner to another. In new communities, these fees fund
association operations. More established communities
may use them to fund reserve accounts for future
improvement projects. The non-refundable fee is also
sometimes called a:
• Transfer fee
• Working capital contribution
• New owner fee
• Buy-in fee
Typically paid by the new homeowner at closing, HOA
governing documents provide precise details on payment
responsibilities and the amounts associations can charge.
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