A new, creative way for real estate developers to make continued profits from property owners is through a "transfer fee" back to them when a property is sold. This is written into the Deed Restrictions and may last as long as 99 years. If the owner refuses to pay this fee, a lien may be filled which encumbers clear title.
A very in-depth article can be found in the San Antonio Express News. This method of continued profit for developers is not in the best interests of consumers and home owners. It increases the cost of the sale and decreases the profit to the seller. It may also cast a shadow on a neighborhood, causing buyers to purchase somewhere else due to this added cost.
The National Association of REALTORS (NAR) has developed sample legislation for use by any of the legislative bodies who want to use them. All home owners are encouraged to contact their legislative representatives and other elected officials and ask for their support in stopping this practice.
Comments(4)