Private Transfer Fee Prohibition ProposedMarch 2011 – Newsletters In the Zone
Pennsylvania State Senator Wayne Fontana (D-Allegheny) has introduced legislation, Senate Bill 353 , that would prohibit private transfer fee obligations in Pennsylvania and provide for notice and disclosure of existing private transfer fee obligations.
Private Transfer Fees are also known as resale fees or capital recovery fees and allow the developer or builder of a home or commercial property to collect a percentage of the sales price—typically one percent—from the seller every time the property changes ownership for the succeeding 99 years. It has been utilized as a tool by some builders to create a re-occurring source of revenue off their product.
Opponents of Private Transfer Fees claim they take equity from consumers, depress home prices, create a disincentive to sell or purchase property, reduce transparency for buyers, create lien issues for lenders and increase the risk of title claims.
This legislation was also introduced in the last legislative session and was unanimously passed by the Senate. However, it was not considered by the House before the end of the session.
For more information, please contact Carrie B. Nase at 215.299.2030 or [email protected]