In My Neighborhood in Azusa>Question Details

Gs4me, Home Owner in 91702

Undisclosed Transfer Fee for purchase of short sale property

Asked by Gs4me, 91702 Tue Feb 7, 2012

We bought a property via short sale in 2010 in Rosedale community in Azusa CA. Almost 2 years later we get a letter from a Miles Rosedale from the Canyon City Foundation demanding payment of a transfer fee. The amount is 1/2 percent of our purchase price. The property management company first denied knowledge of the Foundation but later sent a Master Disclosure Statement dated 9/5/07. We check all of our documents that came with the escrow documents and this was not in the packet. In one section of this document, it mentions a transfer fee that was agreed upon between the developer Azusa Land Partners and the Canyon City foundation which was approved by the City Attorney of Azusa. In the document it also A Transfer Contribution shall be paid by the transferor to the Foundation on or before the Close of Escrow of the Transfer. Is this fee legal? Can they charge a fee 2 years later?

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Gs4me’s answer
Thanks to all of you who answered my question. I went back and forwarded the information to our agent who then contacted the Escrow company. She informed us that the Escrow will send the check to the Canyon City Foundation to cover the 1/2 percent fee. I asked for a copy of the document that states we are released from this liability. Thanks again for all the advice.
0 votes Thank Flag Link Fri Mar 2, 2012
Gs4me:

I agree with Terri's recommendations below. Here are a few more thoughts:

1) Contact the Realtor® who represented you in the purchase to review the CAR Residential Purchase Contract as there is a section that determines whether the buyer or seller is responsible to pay transfer fees.

2) The answer to #1 above aside, note "Transfer Contribution shall be paid by the transferor...” A transferor is defined as "one who conveys a title or property"; hence, it appears the Seller should have paid this fee.

3) Contact the escrow company who handled the transaction and make them aware of the issue and ask if this issue is covered under the Title Insurance policy you paid for.

4) From your post it sounds like an HOA was involved. Ask your Realtor® to provide you with a copy of CAR Form HOA as this lists all of the CA Civil Code and CAR purchase contract disclosures a Seller must provide to a Buyer.

Hopefully you are able to straighten this out quickly.

-Steve
0 votes Thank Flag Link Tue Feb 7, 2012
We have fees like that in Santa Clarita. They are common and written into title. That should have been taken care of in escrow. You need to contact the escrow company and your Realtor/ Broker and let them know that they should have been responsible for first diclosing it and second making sure it was handled through escrow.
You may also want to seek legal council.
Good Luck.
Web Reference: http://www.laura4homes.com
0 votes Thank Flag Link Tue Feb 7, 2012
Did you purchase title insurance? Is this debt mentioned in the title report?
0 votes Thank Flag Link Tue Feb 7, 2012
Title and Escrow should have caught that if it was recorded. It's not uncommon for developers to make deals with city, county, etc. to pass on impact fees to buyers of property. These are usually found in the Preliminary Title Report, although I have seen them in recorded Maps.

As far as charging a fee two years later that would be a legal question and best asked of an attorney.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Tue Feb 7, 2012
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