Hi Mr. Gray,
We are a local Condominium Association, and have a question about application fees. We have been charging an application / background check fee for prospective buyers and tenants. We raised the fee recently to $250, which includes all document requests, background check, estoppels, etc. Is there a cap by the State of Florida on the fee amount? If so, what is it?
Thank you for your help. A local association manager speaks very highly of you and your program and suggested we contact you.
Sincerely,
AS
Palm Beach, FL
Dear AS,
The condominium act provides that a condominium association may charge a maximum $100.00 transfer fee. The language from the statute follows.
718.112(2)
(i) Transfer fees.—No charge shall be made by the association or any body thereof in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless the association is required to approve such transfer and a fee for such approval is provided for in the declaration, articles, or bylaws. Any such fee may be preset, but in no event may such fee exceed $100 per applicant other than husband/wife or parent/dependent child, which are considered one applicant. However, if the lease or sublease is a renewal of a lease or sublease with the same lessee or sublessee, no charge shall be made. The foregoing notwithstanding, an association may, if the authority to do so appears in the declaration or bylaws, require that a prospective lessee place a security deposit, in an amount not to exceed the equivalent of 1 month’s rent, into an escrow account maintained by the association. The security deposit shall protect against damages to the common elements or association property. Payment of interest, claims against the deposit, refunds, and disputes under this paragraph shall be handled in the same fashion as provided in part II of chapter 83.
I know many associations are charging more than the fee allowed in the statute. I would suggest checking with the association attorney to see if the fees you are suggesting may be enforced. I do not think the association can enforce charging more than $100.00.
I hope this helps. Let me know if you need additional information.
Fred R. Gray
President
Gray Systems, Inc.