The Dark Secrets of Gated Communities: How Homeowner Associations are Ripping You Off
Are you thinking of selling your dream home in a gated community? Better think twice. Homeowner Associations (HOAs) are hiding a nasty little secret that could cost you dearly.
The Agent Whoring
HOAs have a new way to line their pockets, and it’s called charging agents "accreditation fees". In essence, they’re extorting money from real estate agents just for the privilege of selling a house in the community. And get this, the money goes straight into the HOA’s coffers, courtesy of the poor agent who gets shafted.
The Irony
You see, according to the Property Practitioners Act of 2019, this is illegal. Yep, you read that right, ILLEGAL. But HOAs don’t care, they’re in it for the benjamins, and they’ll do whatever it takes to get their hands on that cash.
The Consequences
Agents who refuse to pay these illicit fees are blacklisted, and it’s a free-for-all to ruin their reputation. Sellers are then left with a limited pool of "approved" agents to choose from, resulting in lower commissions and a longer sale process. And if that’s not enough, the HOA has been known to hold up the sale’s conclusion, just to get their greedy little hands on that fee.
The Legal Loophole
It’s a classic case of predatory pricing, and the Property Practitioners Regulatory Authority (PPRA) is seemingly powerless to stop it. The fines may seem steep, but for corrupt HOAs, it’s just a slap on the wrist. And if an agent continues to pay these exorbitant fees, they risk losing their license to practice.
The homeowners get screwed
In the end, it’s the homeowners who suffer, paying higher prices for their properties due to the inflated fees. Meanwhile, the HOA gets richer and more powerful, all while the agents take a hit. It’s a rotten deal, and it’s time the HOAs are held accountable.
Are you ready to take on the HOA monolith and fight for your right to a fair sale?
