Charlotte television station WSOCTV (Channel 9) published a story on May 23 delving into an HOA fee from Baxter Village in Fort Mill. The story, entitled “South Carolina HOAs can charge substantial fee to leave neighborhood”, focuses on a residential seller who was shocked to find a more than $1,700 charge from her owners’ association on her closing statement.
The line item read “HOA Service Fee to Baxter”, and the fee was almost double the annual regular assessment of $950. According to the story, the covenants provide that the sale of a home will result in a fee which shall not exceed the greater of $500 or .25% of the gross sales price. The reporter interviewed a spokesman for the subdivision’s management company who said the fee has been in place since 1998. The sales price for the home highlighted in the story was $685,000.
The reporter interviewed a lawyer familiar with homeowners’ association issues in North Carolina as well as South Carolina. He said that North Carolina’s legislature had passed a Planned Community Act in 2010 that banned exit fees except in a few specific cases. South Carolina, of course, does not have similar legislation.
As with every residential purchase, the buyer should be advised by the attorney of the existence of covenants and should be encouraged to read them in their entirety to avoid surprises.
What do you think, dirt lawyers? Should we pass similar legislation in South Carolina?