Glossary
What is a capital contribution?
A one-time payment a buyer makes to the association at closing, where the declaration provides for it, often equal to a few months of assessments. Not a prepayment of dues.
Also called working capital contribution, initiation fee, transfer fee.
In Havn
The closing demand Havn prepares lists the capital contribution and any transfer fee the declaration sets, so the title company collects the right amount.
Demand letters and payoff statementsThe capital contribution funds reserves or working capital as homes change hands. It is set by the declaration, collected by the title company at closing, and listed on the closing demand. Some states cap transfer-related fees or require them to be disclosed in the resale package.
A transfer fee is sometimes the same thing and sometimes a separate administrative charge for processing the sale; the governing documents say which.
Keep Reading
Guides
- HOA Transfer Fees: Who Pays and What They CoverThree different charges show up on a closing statement under the association's name.
Templates
- HOA Welcome Letter TemplateA free HOA welcome letter template for new owners: who runs the community, how dues work and how to pay, the rules that matter most, and how to reach the board or the office.
Laws and Documents
- HOA laws by stateEvery state's association statutes and resale rules on one map.
- HOA letter templatesFree notices, ballots, and letters a board can copy and send.
See how Havn handles it with your own community.
HOA management software with a homeowner portal owners actually use. Resale documents are included; the requester pays for each one.