Property Transfer Fee Investigation
A new predatory scheme to line the pockets of greedy home builders, developers and investors with homeowner's money, requires home sellers to pay fees up to 1% of the sale price of their home each time the house is sold for up to 99 years. Those fees are often in the thousands of dollars. We believe that transfer fees are illegal, and if you retain us, we will fight to have them refunded to you.
The obligations to pay Property Transfer Fees are placed on a property much like any other covenant in subdivisions where homeowners have to comply with certain rules. This fee is typically included in the "Conditions, Covenants and Restrictions" applicable to all homes in a particular community. Because those covenants apply to all homes and automatically transfer with the land, they cannot be waived by buyers and sellers. For example, if you sell your home for $200,000, you may pay a 1% or $2,000 transfer fee at the closing. Then if it's sold a decade later for $400,000, that seller may owe another 1% fee or $4,000. The 1% fee is then split between agreed upon parties, typically developers, builders and third-party investors. Groups that have come out against transfer fees include the National Association of Realtors and the American Land Title Association. Several states, including Arizona and Minnesota have recently passed laws confirming that transfer fees, when paid to third parties, like a property developer or builder, are illegal.
Property Transfer Fee is a common name for these fees, but there are many other names for them including, but not limited to: PFT's, Private Transfer Fees, Private Transfer Taxes, Reconveyance Fees, Capital Recovery Fees, Residential Transfer Fees, and Transfer Fee Covenants. Whatever the fee is called, if any part of it is paid to the builder, an investor, or other third party, we believe they are illegal. On the other hand, if the entire fee is paid to the seller's homeowner's association (HOA), it may be permissible.
How Can I Tell If My House Has A Property Transfer Fee?
The reality is, it's often difficult for homeowners to detect. But the attorneys at Zimmerman Reed can. And we'll do that review for free.
Simply provide Zimmerman Reed a copy of your final HUD-1 Settlement Statement from the closing of your property sale and a copy of your community "Covenants, Conditions and Restrictions" (CCR's) and we'll handle the rest - while keeping your personal data secure and confidential. Zimmerman Reed mortgage attorneys are experienced in detecting these fees and will pour over the paperwork line by line, cross checking every detail and fee to make sure everything was on the up and up. If it's not, we'll assist you in pursuing a claim.
Where Can I find Additional Information?
|Zimmerman Reed has a long track record of helping return hundreds of thousands of dollars to homeowners. We currently represent homeowners across the country dealing with financial loss due to illegal mortgage practices. If you would like more information, or would just like to talk with a lawyer experienced in this litigation, please call 800.493.2827 for a free consultation or click below to fill out an online free case review. We look forward to answering any questions you may have. |