Arizona · A.R.S. §33-442Arizona private transfer fees: which resale fees are void and which are allowed
Arizona voids private transfer fee covenants. A provision in a declaration, covenant or other document is not binding or enforceable against the property or any later owner, buyer or lienholder if it both binds successors in title and obligates the buyer or seller to pay a fee to a declarant or third person on a transfer, or for allowing one (A.R.S. §33-442(A)). Such a provision is unenforceable whether or not it was recorded, and any lien based on it is invalid (§33-442(B)); covenants executed after July 29, 2010 are not binding, and older ones aren't validated either (§33-442(D)). Regular fees owed whether or not the property is sold aren't transfer fees (§33-442(A)(2)). Allowed: a lender's loan assumption fee, a broker's commission, a fee to an association that touches and concerns the land and is used only for the purpose the document authorizes, lease charges, payments to release an option or right of first refusal, club membership transfer fees, fees to a nonprofit for recreation in the association, government fees and taxes, and price adjustments payable to the seller (§33-442(C)). An association can't charge those allowed fees on certain exempt conveyances listed in §11-1134(B)(3) or (7), except managing-agent records fees (§33-442(E)).
The rules
1. Void (§33-442(A)–(B))
Covenants charging a declarant or third party a fee on each transfer; no lien.
2. Timing (§33-442(D))
Not binding if executed after July 29, 2010; older ones not validated.
3. Allowed (§33-442(C))
Association fees for the land, assumption fees, commissions, government charges.
4. Regular dues (§33-442(A)(2))
Fees owed whether or not the property is sold aren't transfer fees.
What the TC can do
- Read every transfer fee on the HOA disclosure and the settlement statement and ask who it is paid to.
- Question a fee payable to a developer or a third party on each sale – it may be unenforceable.
Questions about Arizona transfer fees
Are private transfer fees legal in Arizona?
No. A covenant that binds future owners to pay a declarant or third party a fee on transfer is unenforceable and creates no lien, whether or not it was recorded (A.R.S. §33-442(A)–(B)).
Can an Arizona HOA still charge a transfer fee?
A fee to an association that touches and concerns the land and is used only for the purpose the document authorizes is allowed, unless it must be passed through to a declarant or unrelated third party (A.R.S. §33-442(C)(3)).
Related guides
Add a task in ClosingCode to review each transfer fee on the settlement statement before closing.
Start free trialSource: A.R.S. §33-442 (azleg.gov, read October 28, 2026).
General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.