A New Way to Screw Real Estate Buyers and Sellers

Private Transfer Fees are a relatively new device in the real estate developer's toolbelt.  A private transfer fee results from a covenant filed in the property records that requires a payment to the original developer each time the lot is sold.  The typical fee is 1%  percentage of the purchase price and the requirement can last as long as 99 years!!!   This covenant creates a lien on the property, so title companies must collect the fee at closing or absorb the cost if they fail to do so. Developers justify the fee by saying it allows them to spread the costs … [Read more...]

DISCLAIMER: No attorney-client relationship is created between the website owner and the website visitors, no matter what. The owner makes no claims or guarantees about the accuracy or completeness of the website contents and expressly disclaims liability for errors or omissions. No warranty of any kind, express, implied or statutory, is given for any contents, hyperlinks or other internet resources. Those accessing this website assume full responsibility for its use and agree that the website owner is not liable for any claim, loss or damage arising from that use.