Such fees throw a percentage of a home’s sale price back to the original developer each time the home is sold.
Under the new legislation, new private transfer fees will not be allowed. Developers who have existing fees on properties must file a notice of the obligation in county property records by Jan. 31, 2012, and update it every three years. If they fail to meet this requirement, the transfer fee is void.
Real Estate Center attorney Judon Fambrough and Research Economist Dr. Harold Hunt discussed private transfer fees on theReal Estate Red Zone podcast (episode 26).