associaton capital contribution

Asked by Daniel, Brigantine, NJ Mon Dec 7, 2009

Hi everyone , this is my question, when i bought my condo in 2007 i paid 3 months of association fees as capital contribution, now im selling my place and i want to know if i get those 3 months back? or they just keep that money and i walk out without a dime of that thing called CAPITAL CONTRIBUTION!


Alex

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6
Chantalle Di…, , Miami, FL
Tue Jan 5, 2010
Capital contribution is just a fee that you pay up front to cober a certain amount ofn months worth of maintenance fees (usually 1 to 3 months) so if you've lived there since 2007 im pretty sure you didnt have to pay maintenance the first few months since you paid them at closing with the capital contributions so you basically "lived out" the fee during the first few months. Your settlement statement will give you a detail on the amount of months of maintenance fees that the capital contribution covered.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Dec 7, 2009
PS Denise is correct - it is often referred to as an "application fee".....used to fill the capital reserve coffers
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Debra (Debbi…, Agent, Livingston, NJ
Mon Dec 7, 2009
Hi Alex.....or Daniel

It is very common (in my area, anyway) for condominium associations to collect anywhere from 1-3 month's maintenace fees for the "capital reserve fund" - a one time, non-refundable fee collected at closing, paid for by the buyer. . Notice I said non-refundable!
This is customary and usual here, and apparently, it is customary and usual where you are, too.

I haven't closed on any condo without having this type of fee included. it is even listed on our MLS forms, so that buyers know about it in advance..

Hope this helps!
Best wishes
Debbie Rose
Prudential NJ Properties
0 votes
Denise Guet…, Agent, Chester, NJ
Mon Dec 7, 2009
This is sometimes just a fancy name for application fee. Just like when you join a gym there is an upfront fee that is non refundable. Without know the exact details of your association, it is a way for home owner association to keep "reserves". There is one community I know that charges 1/10 of 1% is paid at closing to become a member. A home that sells for $300,000 would have a $300 fee paid a closing to the association. I have never heard of any upfront fees being refunded when a home is sold. Good luck but I think the "capital contribution" is just that a contribution. Call the association and ask.

Denise Gueterman Weichert Realtors 142 Main Street Chester, NJ 07930
908-303-2472 Cell 908-879-7010 office denisegueterman@hotmail.com
0 votes
Keith Sorem, Agent, Glendale, CA
Mon Dec 7, 2009
Daniel
I would see if you can "transfer" the fee to the new owner. Sort of like how property taxes work. You pay the property tax "in advance", so the same might work with this. Talk with your Realtor, the HOA. If you price and demand is right, it might work.

It never hurts to try.
0 votes
Ian A. Wolf, Agent, Morristown, NJ
Mon Dec 7, 2009
Nothing is standard as each offering plan is different. Sometimes you get it back and sometimes you don't, it depends on the rules and by laws of the association. I would call the management company and ask them, they should be able to direct you accordingly. Also, if you are using and attorney, he/she could find out for you too. Hope that helps.
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