More home buyers are being asked to pay a developer a fee—called a private transfer fee—at closing even if the home has transferred ownership several times since the developer initially sold it.
Help buyers understand—and possibly negotiate away—private transfer fees by sharing free information from “Private Transfer Fees Affect Home Pricing & Marketability” from the November “Home Ownership Matters” theme now available at the REALTOR® Content Resource. Here’s just some of the information:
The issue. A private transfer fee, also known as a reconveyance fee, is generally added as a covenant to the deed on each new home a developer sells. So every time the property is sold, often for as long a period as 99 years, new buyers have to pay the developer a fee equal to a set percentage of the sales price until the covenant runs out.
What opponents say. A home with private transfer fees may be harder to sell, or the owners may have to lower the sales price since their house will be more expensive than a comparable home when you factor in the price of the private transfer fee.
With new enhancements to the REALTOR® Content Resource, you can now share “Home Ownership Matters” and other articles with consumers via Facebook, Twitter, and email directly from the REALTOR® Content Resource. You can also search more easily for content by themes (formerly “Collections”) or keywords.
The REALTOR® Content Resource, brought to you by the NATIONAL ASSOCIATION OF REALTORS®, is a member resource that entitles you to download free home ownership content from HouseLogic to your marketing materials.
HouseLogic is the NATIONAL ASSOCIATION OF REALTORS’® comprehensive consumer website geared to helping home owners make smart decisions to enhance, maintain, and protect the value of their home.