Local & Community
Court Rulings Question Palm Valley Country Club Transfer Fees
Several homeowners at Palm Valley Country Club in Palm Desert are winning refunds after challenging transfer fees that were charged when they sold their properties.
The fees, which now total nearly $10,000, have been part of the community's governing documents for decades. While the transfer-fee provision appears in the homeowners association's CC&Rs, attorneys say the money is collected by the separately owned golf club, not the HOA.
According to attorney Julie Balbini, California lawmakers significantly restricted private transfer fees nearly two decades ago through Civil Code sections 1098, 1098.5, and 1098.6. The law allowed certain older transfer fees to remain in place only if a required disclosure was recorded with the county recorder's office.
Balbini says that disclosure was never recorded for the Palm Valley fee, making it unenforceable under California law.
One homeowner said he was charged approximately $9,500 during the sale of his condo and paid the fee under protest rather than risk delaying or jeopardizing the transaction. After the sale closed, he filed a small claims case and won a full refund.
Since then, several other homeowners have taken similar legal action and also prevailed. Balbini said local judges have repeatedly ruled in favor of homeowners seeking reimbursement, including one case that was appealed and later upheld in Superior Court.
The issue remains complicated because the transfer-fee language still exists in the community's CC&Rs. Balbini says the HOA is required to disclose the provision during escrow transactions even though courts have found the fee itself is not enforceable.
For now, homeowners who pay the fee can seek refunds through small claims court. Balbini says a more permanent solution would likely require a separate court action to remove the transfer-fee provision from the governing documents altogether.
Palm Valley Country Club was contacted for comment regarding the court rulings and the continued collection of the fees. A response had not been received at the time of publication.
By: Caitlyn Kelley
June 1, 2026
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