What does the cost of the New Member Origination Fee cover?
The fee is not just to cover the expense of researching the status of the account and preparing the letter. This fee compensates management staff for the process of entering this new account into the association’s financial and database records, closing out the file of the previous owner and establishing a new file record, coordinating insurance coverage with the association’s insurance carrier (if applicable), prepare and distribute a Welcome Packet to the new owner, and other various duties needed to establish a new account. These services are not charged to the association, but rather are paid by the new owner as a “user pay” process.
