Since the property (I presume) is held (or was held) for rental use, I would deduct it if the transfer fee was a nominal amount (e.g., a hundred or even a few hundred dollars).
I find it perplexing that the HOA has a transfer fee for the transferor rather than the transferee (i.e., the buyer). Such transfer fees (aka capital contributions) are typically imposed on the buyer, in which case the cost could be added to the basis.
