Saturday, July 31, 2010

Home-Resale Fees Under Attack

As reported in today's Wall Street Journal, home-resale fees (also known as "reconveyance fees" or "private transfer fee covenants") are under attack by a group led by the National Association of REALTORs® and the American Land Title Association. Home-Resale Fees are set by a developer to trigger when any subsequent homeowner sells the property, with the typical 1% of the sales price going to the developer. 12 states, including Maryland, have outlawed this type of transaction fee, but if this group is successful there will be a federal ban on such a practice.