Selling a condo, townhome or house inside a community association in metro Atlanta means one document has to arrive before anyone signs: the HOA closing letter. Georgia closing offices treat it as a standard item, and a late letter can put the settlement date at risk. If you have been searching "HOA closing letter Georgia," this guide covers what the letter is, what Georgia statutes say about it, the other association charges that show up at closing (transfer fees, capital contributions, management company fees, prorated dues and fines), how the purchase contract allocates those charges, and what a seller can gather early.
This is an overview of the process only. For advice on your contract, your association's documents or a specific charge, speak with a Georgia real estate attorney.
What Is an HOA Closing Letter in Georgia?
An HOA closing letter is a written statement from a community association, or its management company, showing what is owed on a specific lot or condominium unit as of closing. It typically lists regular dues, any past due balance, late charges, interest and fees that must be collected at settlement. The closing office uses it to make sure association amounts are paid out of the sale proceeds.
The same document may be called a statement of account, a clearance letter, a settlement letter, a resale certificate or an estoppel letter. Georgia law creates a narrow right to a statement of past due amounts, described below, but many management companies deliver a broader package. A national management company's Georgia guide, published in May 2025, describes resale certificates as covering "past-due HOA fees, unpaid assessments, or charges owed," pending violations or fines, and "any fees that must be paid upon closing."
Who Requests the Closing Letter, and When?
The closing attorney's office commonly orders the letter once the purchase contract is in place, although some management companies take the request from the seller. The request goes to the association or its management company, and the resulting figures appear on the settlement statement. Sellers can speed the process by giving the closing office accurate association and management contact details at the start.
The website of O'Kelley and Sorohan, an Atlanta closing law firm, says that for sellers in an association it needs a letter from the HOA showing dues paid or owed and any initiation fees or special assessments owed, and that "most associations charge a fee to provide us with an account status letter that will appear on the settlement statement." Title insurers look for the letter too. A Stewart Title underwriting bulletin for Georgia, issued in February 2010, states that issuing agents must confirm assessments are paid current or obtain a satisfactory written statement of current amounts from the association, and that the company will not insure over these assessments unless all amounts due are paid in full through the date of closing.
What Does Georgia Law Require of the Association?
Two parts of O.C.G.A. Title 44, Chapter 3 address this: Section 44-3-232(d) of the Georgia Property Owners' Association Act and Section 44-3-109(d) of the Georgia Condominium Act. Both give owners, contract purchasers, mortgagees and prospective lenders a right to a written statement of past due amounts, with a five business day deadline and a stated fee limit.
Property owners' associations: O.C.G.A. 44-3-232(d)
Under the 2025 Code of Georgia text of O.C.G.A. Section 44-3-232, a lot owner, mortgagee, contract purchaser or prospective lender is entitled to a statement "setting forth the amount of assessments past due and unpaid together with late charges and interest." The request must be in writing, delivered to the association's registered office, and must state an address for the response. The association has five business days from receipt to furnish the statement. If it fails to, the statute says the lien for assessments is extinguished "as to the title or interest acquired by the purchaser or lender" in that transaction. The statement is binding on the association and every lot owner, and a fee "not exceeding $10.00" may be required "if the instrument so provides."
This statute applies to communities that have submitted to the Property Owners' Association Act, and not every Georgia HOA has. A Georgia real estate attorney can say which rules govern a particular community.
Condominiums: O.C.G.A. 44-3-109(d) and 44-3-110
Section 44-3-109(d) of the Georgia Condominium Act is nearly identical. Unit owners, mortgagees, contract purchasers and prospective lenders may request a written statement of past due assessments, late charges and interest, with the same five business day deadline, binding effect and lien consequence, and a fee limit of $10.00 where the condominium instruments provide for it.
Section 44-3-110 adds a second statement some condo sellers need. If the condominium instruments create a right of first refusal or another restraint on resale, the association must provide, on request, a recordable statement certifying any waiver of or failure to exercise that right. The deadline is 30 days or a shorter period set in the instruments, the fee may not exceed $25.00, and failure to furnish it makes those rights inapplicable to that sale.
What changed for Georgia associations in 2026
The Georgia Property Owners' Bill of Rights Act, Senate Bill 406, passed the General Assembly on March 31, 2026, and was signed by Governor Brian Kemp on May 12, 2026. The Secretary of State's Property Owners' Associations Division FAQ says associations, including condominium developments, must register on or after January 1, 2027, and must keep an active registration to collect fines or fees, file or record liens, or start foreclosure. Atlanta News First reported in May 2026 that the law also doubles the minimum in unpaid dues, not counting fines or fees, that an association generally needs before it can file to foreclose, to $4,000.
What Other Association Charges Can Appear at Closing?
Beyond the dues balance, a Georgia settlement statement can include transfer fees, initiation or capital contribution fees, new account set-up fees, management company document and rush fees, prepaid or prorated dues, special assessment installments and unpaid fines. Most of these come from the association's governing documents or its management arrangements rather than from statute, which is why amounts vary from one community to the next.
Transfer, initiation and capital contribution fees
Many associations charge a one time fee when ownership changes. It may be called a transfer fee, initiation fee, new member fee, new account set-up fee or capital contribution. The Georgia REALTORS Community Association Disclosure Exhibit is where a seller discloses association fees to the buyer, and the Georgia REALTORS summary of its 2026 forms changes notes that different types of fees are now grouped in separate sections of that exhibit. The declaration, bylaws, board policies and the management company's fee schedule are the places to confirm the amount before listing.
Management company document and rush fees
The statutory fee limits apply to the statutory statement, and many management companies charge more for a full closing package. A Georgia REALTOR magazine article in the Spring 2020 issue by Kara Cook and Heather James stated that "Many HOA management companies charge in excess of $250 in fees to prepare this letter" and that, if delayed, "some management companies have been known to charge an additional fee that can often be up to $150." The May 2025 management company guide put the average resale certificate cost at $100 to $450, depending on the company and documents included.
Prorated dues and outstanding fines
Dues are divided around the closing date, and the closing letter supplies the billing cycle and paid-through date needed to do it. Fines matter too: under both Section 44-3-109(a) and Section 44-3-232(a), sums lawfully assessed against an owner, including fines, become a lien on the property from the time they are due. A closing letter may therefore list unpaid violation fines alongside dues, and a seller who has received violation notices should raise them with the closing office early.
Who Pays Which Charges, Buyer or Seller?
Allocation is set by the purchase contract. In a sale on Georgia REALTORS forms, the purchase and sale agreement and its Community Association Disclosure Exhibit are where the closing letter cost, transfer and initiation fees, capital contributions, prorated dues and special assessment installments are assigned to the buyer or the seller. The parties negotiate that split, and the signed contract controls.
Because the terms come from the contract, the practical step is to read the version both parties actually signed, including any special stipulations, rather than relying on what another sale used. The charges that typically need an answer in writing are:
- The cost of the association account statement or closing letter.
- One time fees, such as an initiation fee, capital contribution, new member fee, transfer fee or new account set-up fee.
- Prepaid dues for a period after closing, and dues that came due before closing.
- Installments of any special assessment, both those due before closing and those due after.
Accurate figures on the disclosure exhibit help both sides negotiate from the same numbers, and the closing letter confirms them before settlement. A Georgia real estate attorney can explain how the language in a specific contract applies. Our guide to selling an Atlanta condo with a pending HOA special assessment covers how assessments are disclosed and divided in more detail.
What Should Sellers Gather Early to Avoid a Delayed Closing?
The most useful step is to collect association details before listing: the association's exact legal name, the management company and its resale contact, your account number, current dues and billing cycle, the transfer or capital contribution amount, and any open violations or fines. With those in hand, the disclosure exhibit can be completed accurately and the closing office can order the letter right away.
- Your most recent account statement and paid-through date.
- The management company's fee schedule, including rush or update fees and its posted turnaround.
- The declaration, bylaws, amendments and rules, including any right of first refusal that would call for a Section 44-3-110 statement.
- Any approved or proposed special assessment and its installment schedule.
Closing letters show figures as of a date, so if a closing date moves, ask the closing office if a new letter is needed. Building the five business day window and the management company's posted turnaround into the contract timeline reduces the chance of a last minute rush. Leasing rules are another association item buyers check, and our article on HOA leasing restrictions and rental caps in metro Atlanta explains what buyers typically verify.
FAQ
How long does a Georgia association have to provide a statement of amounts due? Under O.C.G.A. 44-3-232(d) for property owners' associations and 44-3-109(d) for condominiums, five business days from receiving a written request delivered to its registered office. Management company closing packages may follow their own posted turnaround times.
Is the fee for a closing letter capped at $10 in Georgia? The 2025 Code of Georgia text of both statutes allows a fee "not exceeding $10.00" for the statutory statement where the association's documents provide for it. Many management companies charge more for broader closing packages. A Georgia real estate attorney can explain how the limit applies to a specific request.
Who pays the HOA transfer fee or capital contribution in an Atlanta sale? The purchase contract and its community association exhibit allocate these fees. The buyer and seller negotiate the split, and the signed contract controls. A Georgia real estate attorney can explain how the terms in a specific contract apply.
Conclusion
The HOA closing letter is a small document with a large effect on timing. Sellers who collect their association details early, disclose fees accurately and plan for the letter's turnaround give their closing a better chance of staying on schedule. If you are preparing to sell a condo or a home in an association in metro Atlanta, contact The Agency Atlanta for a conversation about your property and your timeline.
