"Seller. Buyer. Split Equally Between Buyer and Seller. Other." Those four options sit in Section 4.3(c) of Utah's Real Estate Purchase Contract. The section covers fees that a homeowners association charges because a home changed hands. The form names these fees outright: "transfer fees, community enhancement fees, HOA reinvestment fees, etc." Then it leaves the payer blank.
In most of South Jordan, few deals ever reach that blank. In Daybreak, every resale does. The Daybreak Community Association charges a one-time Community Enhancement Fee of 0.5% of the gross sale price, "paid at closing and transfer of title." Daybreak's own materials say when the fee is due. Neither the association's closing page nor the state form says who pays it. That choice belongs to the buyer and seller, and the box they check is worth as much as a modest price concession.
What the half-percent pays for
The money doesn't go to the general budget. Daybreak's Community Enhancement Fund overview explains that the founders created a nonprofit called LiveDAYBREAK to run community programming. The founders set up this transfer fee to fund it. The association lists events like the Summer Concert Series, Dragon Boat Festival and Pumpkin Regatta. It also says the fund has supported projects at area schools and started a public art program in Daybreak.
That background shapes the negotiation. The fee pays for programming the buyer is about to join, and for programming the seller has already used for years. Both sides can make a reasonable case, and the contract leaves the answer to whatever terms they write in.
The checkbox in dollars
The fee is a percentage, so it grows with the price. The math below uses round example prices, not market data:
| Example sale price | 0.5% fee | If split equally |
|---|---|---|
| $500,000 | $2,500 | $1,250 each |
| $700,000 | $3,500 | $1,750 each |
| $900,000 | $4,500 | $2,250 each |
At $700,000, moving the fee from one side to the other shifts $3,500. Splitting it moves $1,750 off whichever side would otherwise pay. That amount is in the range of a small repair credit after an inspection. It is also the kind of gap that decides whether two parties who are close on price actually sign.
The REPC treats this fee as its own line, separate from three similar items:
- Regular HOA dues are prorated as of the Settlement Deadline, unless the parties agree otherwise in writing.
- Special assessments for capital improvements, approved before the Settlement Deadline, get their own four-way checkbox in Section 4.2.
- Escrow fees are paid by each party for its own share, unless agreed otherwise.
So a Daybreak offer carries two separate HOA checkboxes, one for special assessments and one for the enhancement fee. Settling one doesn't settle the other. The REPC footer says the current form took effect December 4, 2024, and the form states that Utah law requires licensees to use it.
Why the buyer's side of the box looks bigger than 0.5%
A buyer deciding whether to take on the fee is weighing it against dues that never stop. Daybreak's 2026 quarterly assessment rate sheet, updated February 20, 2026, shows the master base assessment at $334.50 a quarter, up $6.00. Quantum Fiber internet adds $99.00, for a total of $433.50 a quarter, or $144.50 a month. Homes in Founders Village Phase 1 don't pay the internet charge and choose their own provider, so they pay $334.50 a quarter.
That's the minimum. Many homes also belong to a sub-association or benefited service area, which bills separately. The rate sheet says master and sub-association payments must be made separately and can't be moved between accounts. Here are a few 2026 quarterly figures from the same sheet, each charged on top of the master assessment:
- Cottage Courts: $45 a quarter
- Garden Park Village single-family homes: $426 a quarter, including $180 in clubhouse dues
- Heights Park townhomes: $507.90 to $636.33 a quarter, depending on builder
- SoDa Row: $699 a quarter, with 20 lots also paying $25 a month for garbage
- Garden Park condos: $1,341 a quarter
A SoDa Row home with internet service pays $1,132.50 a quarter in combined dues before the garbage charge. Over a single year, that is more than the full enhancement fee on a $700,000 sale. So a buyer comparing two Daybreak homes is comparing two different cost structures, and the checkbox is one of the few costs they can negotiate. The master rate is "non-negotiable," the sheet says. Some condo and townhome groups, including Carriage Home, Eastlake Village, Lake Village condos, Tempo and Townhome 1, have their own managers. The Daybreak sheet doesn't list their amounts.
Timing matters too. Master assessments come due January 1, April 1, July 1 and October 1. A closing this fall lands inside the quarter billed October 1. The REPC's default proration as of the Settlement Deadline then sorts out who owes whom for that quarter, separately from the enhancement fee.
Where the numbers at closing come from
Daybreak requires agents to get all closing documents through Homewisedocs. The rate sheet says that includes confirming assessment rates, the current account statement, Community Enhancement fees and "other fees due at closing." It also warns that rates can change without notice. The posted rate sheet is a reference. The Homewisedocs statement is the figure the settlement statement uses.
Utah law sets limits on the payoff side. Under Utah Code 57-8a-106, an association can charge for payoff information only if its governing documents specifically authorize the charge. Even then, the charge can't exceed $50 or be required before closing. If the association doesn't respond within five business days to a qualifying request from the closing agent, it can't enforce its lien for amounts due at closing. Daybreak sellers should also expect the association's Seller Violation Disclosure Form, which is posted next to the closing instructions.
What the 2026 law did and didn't change
This spring the Legislature passed H.B. 306, "Reinvestment Fee Amendments," sponsored by Rep. Ariel Defay and Sen. Kirk A. Cullimore. It took effect May 6, 2026. Under the amended Utah Code 57-1-46, reinvestment fee covenants recorded on or after May 6, 2026 can't charge more than 0.5% of the property's value. The cap drops to 0.25% in a "low-amenity" association, meaning one made up only of detached single-family homes that doesn't provide capital-intensive infrastructure maintenance. Property in a "large master planned development" is exempt from the cap. That term means an approved development of at least 500 acres or 500 units with commitments such as community programming, open space or recreation amenities.
The cap applies by date of recording. Daybreak's governing documents index lists a "Reinvestment Fee Covenant 05.02.2013." The new percentage limit applies by its terms to covenants recorded on or after May 6, 2026. Daybreak's fee is also already at 0.5%. The law also added process rules. On or after May 6, 2026, imposing a reinvestment fee requires authorization in the governing documents and approval by a majority of voting interests. Associations outside large master planned developments must put at least half of the fee into reserves. Members can also vote to remove or amend a reinvestment fee at a special meeting. That takes at least 51% of voting interests attending and voting, and a majority of those voting in favor. Older-style "transfer fee covenants" recorded on or after March 16, 2010 are void under the same section. Reinvestment fees are a separate category.
None of the new law chooses a box on the REPC. Who pays at settlement is still a term the parties set.
This is general information, not legal, tax or financial advice. Confirm how these rules apply to your sale with a Utah real estate attorney, your title company or your lender.
Quick answers
Is the Community Enhancement Fee the same as a special assessment? No. The REPC handles them in different sections with different checkboxes: 4.3(c) for change-of-ownership fees and 4.2 for special assessments.
Does the fee apply to the price before or after seller concessions? Daybreak describes it as 0.5% of the "gross sales price." The Homewisedocs statement for the specific sale shows the exact figure.
Where can I compare Daybreak with the rest of the city? Our South Jordan neighborhood page and our guide to buying in South Jordan's master-planned communities cover the bigger picture. If you're selling one home and buying another in the same city, coordinating a sell-and-buy move within South Jordan covers the timing.
If you're planning a Daybreak sale, the enhancement fee, the sub-association dues and the prorated quarter all belong in your net proceeds before you set a list price. Tricia Vanderkooi can go through those line items with you and plan how to handle Section 4.3(c) when an offer comes in. Start with a free home valuation.
