Understanding the Community Association Disclosure:

A Must for Georgia Agents
When representing a seller in Georgia, it’s critical to ensure the Community Association Disclosure is completed fully and accurately. This GAR form gives buyers a clear picture of the financial obligations tied to the property. Errors or omissions can create disputes, delay closings, or expose your client to liability.
Key Fees to Verify

• Initiation Fees – One-time charges when the buyer joins the association.
• Transfer Fees – Costs to update records at closing.
• Administrative/Move-In Fees – Orientation, inspections, or paperwork fees.
• Recurring Assessments – Monthly, quarterly, or annual dues.
• Special Assessments – Additional charges for projects or repairs.

Why Accuracy Matters

• Protects Your Client: Incorrect fee disclosure can result in claims of misrepresentation.
• Avoids Delays: Lenders and closing attorneys rely on these figures for settlement.
• Strengthens Trust: Accurate disclosures show professionalism and help buyers make informed decisions.

Best Practices for Agents

• Request a written fee sheet directly from the HOA/management company before listing.
• Double-check for pending or approved special assessments.
• Remind sellers that if fees change before closing, they must update the disclosure.
• Educate your clients: Emphasize that accuracy protects them just as much as the buyer.

 
Who Pays What? Understanding Transfer, Initiation, and Administrative Fees and who pays them?
Buyer Pays: Buyer shall pay any initiation fee, capital contribution, new member fee, transfer fee, new account set-up fee, fees similar to the above but which are referenced by a different name, one-time fees associated with closing of the transaction and fees to transfer keys, gate openers, fobs and other similar equipment (collective, “Transfer, Initiation, and Administrative Fees) to the extent the total amount due is accurately disclosed above. Advance assessments due at Closing for a period of time after Closing, shall not be Transfer, Initiation, and Administrative Fees and shall be paid by Buyer.
Seller Pays: Seller shall pay any Transfer, Initiation, and Administrative Fees in excess of the amount disclosed on the community association disclosure. In the event seller fills in the above blank with “N/A”, or anything other than a dollar amount, or is left empty, it shall be the same as Seller filling in the blank with $0.00. The seller will be required to pay any fee in excess of the amount disclosed.
Bottom line for agents: Take the lead on verifying HOA fees. Doing so prevents headaches, protects your seller, and ensures smoother closings.