Recently a movement has begun against the application of home transfer fees by some unlikely groups. 11 groups have joined together consisting of members from the National Council of La Raza, libertarian and property rights groups, and the National Association of Realtors to form one united group named “The Coalition to Stop Wall Street Home Resale Fees”.
The focus of the group is to urge the Obama Administration to pass legislation that would put an end to home transfer fees. Most Americans are not aware of the practice and application of home transfer fees. When a home builder wishes to draw additional capital for a project they entice Wall Street investors with the application of home transfer fees to their projects. What this means is that there is a 99 year lien placed against the home and every time the home is sold over the next 99 years a 1% fee must be paid to a trustee who represents the initial investor. This promise of additional cash beyond the investment is a draw to savvy Wall Street investors.
An example of how it works is; suppose a homeowner wants to sell their home for $300,000. Prior to the closing on the home a fee of $3,000 would have to be paid to the trustee’s account. This fee is in addition to all of the regular fees that are applicable at closing. The new home buyer would be remiss not to use the home transfer fee that is applicable at the future sale of the home as a bargaining chip. This could potentially end up costing the current seller thousands of dollars in home transfer fees.
The Coalition to Stop Wall Street Home Resale Fees is requesting that the Obama Administration prohibit the application of home transfer fees on loans that are handled by Fannie Mae, Freddie Mac and the Federal Housing Administration. Combined the three agencies account for an estimated 95% of all mortgages in the United States. One of the main complaints by the 11 group coalition is that the home transfer fee places an unfair burden on military personnel in particular who move every two to three years.
Bryan is a member of New Homes Section and a proud contributor to its blogging network. 
The taxes have to come from somewhere not sure of the state of deficit in the states but Europe is having to take tough meaures ro raise tax revenues.
Whilst you might agree with the sentiment where do you replace the money from?
It’s about time thes Transfer Fees are being questioned. And I don’t think you necessarily have to be belong to certain libertarian and property rights groups to do so. Jusat using common sense will do in this case.
Transfer fees in Marbella are close to 11% of the purchase price