In another blog from March 30th, 2010, as reported in the San Antonio Express-News, transfer fees by developers is another revenue stream without end. This is seen by many as a detriment to current and future property owners. New developments on the federal level have been reported. 
Again, as reported in the San Antonio Express-News, the federal government proposes to stop developers from collecting transfer fees from owners on properties they (the developers) no longer own. Just what is a transfer fee?
A transfer fee is a percentage of the sale of real property, in this case a residential home, paid to the developer each time a property is sold. This stipulation is made a part of the deed and runs with the property for 99 years. This is a long-term revenue stream for the developer yearsafter the property was originally built and sold. This transfer fee may also become a commodity sold to an investor to whom the fee is then paid.
In 18 states these types of fees are illegal. Not so in Texas! A company in Austin has been marketing this plan across the nation. The buyers of the property do not have any idea this is part of the deal when they make a purchase. It is a hidden cost, some would opine will increase the cost of a home.
The federal government is considering, through the Federal Housing Fiance Agency, to disallow Fannie Mae and Freddie Mac from backing any loans with this type of a transfer fee included in the deal.
As always, your comments are appreciated.
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