{"id":11507,"date":"2010-03-09T11:49:18","date_gmt":"2010-03-09T18:49:18","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11507"},"modified":"2010-03-09T15:45:56","modified_gmt":"2010-03-09T22:45:56","slug":"what%e2%80%99s-wrong-with-private-transfer-fees","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11507\/what%e2%80%99s-wrong-with-private-transfer-fees\/","title":{"rendered":"What\u2019s wrong with Private Transfer Fees?"},"content":{"rendered":"

Have you heard of Private Transfer Fees?\u00a0 A private transfer fee is a fee that is required to be paid each time a property is sold at closing.\u00a0 The transfer fee is attached to the property as a covenant that can run for a period, often 20 or 100 years.<\/p>\n

The fees are being used for a variety of purposes.\u00a0 In some cases, they have been used to satisfy demands from environmental groups.\u00a0 Developers have also used them, by securitizing them up front, to help pay mitigation costs and up-front infrastructure costs on new developments.\u00a0 Supposedly even private home owners might be able to add a 1% transfer fee to their homes with revenues serving as future household income.<\/p>\n

The NAR, American Land Title Association and the NAHB are all looking at ways to prohibit or limit private transfer fees.\u00a0 While that tends to make me like the idea of transfer fees on its own, I really don\u2019t see issues with them.\u00a0 Admittedly, I develop properties from time to time.\u00a0 Yes, I am frustrated with impact fees, mitigation and infrastructure fees that have climbed to the stratosphere in my little part of the world.\u00a0 This approach could really help to create some affordable homes that people might actually buy.<\/p>\n

Freehold Capital Partners is active in the reconveyance fee financing arena working with developers to structure financing for infrastructure improvements.<\/p>\n

Essentially, the concept is based on the premise that improvements which enhance real property are in the immediate and long-term public interest; and a system enabling present owners of private property to better and more fairly apportion present costs and profits amongst multiple future beneficial owners increases economic efficiency.<\/p>\n

Traditionally, initial buyers shoulder 100% of the burden of amenities, infrastructure and other improvements, which creates a high barrier to entry into the development. By utilizing this funding tool, developers can now more fairly apportion expenses incurred for permanent improvements among successive owners of the property who will be enjoying the amenities and improvements for years to come. (A familiar example would be bonds issued to finance new schools, where the bonds are paid off over time by Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Have you heard of Private Transfer Fees?\u00a0 A private transfer fee is a fee that is required to be paid each time a property is sold at closing.\u00a0 The transfer fee is attached to the property as a covenant that can run for a period, often 20 or 100 years. The fees are being used […]<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,5],"tags":[],"class_list":{"0":"post-11507","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-carnival-of-real-estate","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":13005,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13005\/nar-and-alta-further-attempt-to-stifle-private-enterprise-on-private-transfer-fees\/","url_meta":{"origin":11507,"position":0},"title":"NAR and ALTA further attempt to stifle private enterprise on Private Transfer Fees","author":"Al Lorenz","date":"August 16, 2010","format":false,"excerpt":"When the National Association of Realtors and the American Land Title Association claim to be doing something to benefit consumers, those same consumers can expect to be fleeced once again.\u00a0 Currently, they are trying to ban private transfer fees by getting the Federal Housing Finance Agency to amend rules so\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1041,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1041\/is-your-broker-profitable-rent-a-broker-shops\/","url_meta":{"origin":11507,"position":1},"title":"Is Your Broker Profitable? – “Rent-A-Broker” Shops","author":"Brian Brady","date":"February 13, 2007","format":false,"excerpt":"The 100%, desk fee model was made popular some 25 years ago by one HUGE national franchisor. There have been several companies that have adopted that model and had equal success. Essentially, the business model is along the lines of \"rent-a-broker\" for a flat fee per month. The term \"rent-a-broker\",\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":255,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/255\/gregs-toothsome-lease-addendum\/","url_meta":{"origin":11507,"position":2},"title":"Greg’s toothsome lease addendum . . .","author":"Greg Swann","date":"August 26, 2006","format":false,"excerpt":"I was out with investors today, and I mentioned this model lease addendum to them. I wrote this two summers ago. It is devised to permit out-of-state or arm's-length landlords to get along without a property manager, if they choose. Take note that this a model, an example for education\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1619,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1619\/hard-money-it-aint-stupid-money\/","url_meta":{"origin":11507,"position":3},"title":"HARD MONEY: It Ain’t STUPID Money","author":"Brian Brady","date":"July 2, 2007","format":false,"excerpt":"Hard money is not stupid money. Pragmatic underwriting guidelines are followed so as to insure the principle that the private mortgage really is a temporary loan, designed to solve rather than to perpetuate the underlying problem. I attempted to define this niche in one of my first posts on Bloodhound\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15383,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15383\/lower-va-funding-fees-as-of-november-18-2011-attract-year-end-veteran-buyers\/","url_meta":{"origin":11507,"position":4},"title":"Lower VA funding fees, as of November 18, 2011, attract year-end veteran buyers","author":"Brian Brady","date":"November 22, 2011","format":false,"excerpt":"N.B:\u00a0 On the day before I published this, HR 674 passed, reverting the funding fee amounts to the \"old\" levels.\u00a0 It was updated in VA Circular 26-11-19, published November 22, 2011.\u00a0 The \"new\" lower funding fee schedule was in effect for three days, from Nov 18-21.\u00a0 Sorry for the confusion.\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":550,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/550\/smashing-the-idols-understanding-market-value-in-full-context\/","url_meta":{"origin":11507,"position":5},"title":"Smashing the idols: Understanding market value in full context . . .","author":"Greg Swann","date":"October 17, 2006","format":false,"excerpt":"Nominate me Ikonoklastes, for I am come to raze this temple of half-baked ideas. I want to come back to the MLS later in the week, and I have a deep need to expose the motivations of brokers, as these are distinguished from the motivations of lesser licensees. But for\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11507"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11507\/revisions"}],"predecessor-version":[{"id":11509,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11507\/revisions\/11509"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}