Imagine you bought a home from a developer 10 years ago. Now you want to sell it, and you find out that buried in the deed is a well-hidden stipulation that you have to pay the developer a percentage of your profit.
Developers have recorded hard-to-find transfer fees in deed restrictions that require payment of a percentage of future property sales back to that developer – for 99 years in some cases. Certain types of these restrictions have been prohibited, but loopholes still exist.
Even if your property isn't subject to such a transfer fee, you wouldn't want to purchase one that is. And since record of these fee requirements is usually well-hidden, sellers and their representatives may not know about them.
During the 82nd Texas Legislature, the Texas Association of REALTORS® supported measures that now prohibit most future private transfer fees and provide clarity and disclosure requirements to properties with existing transfer fees. These measures mean fewer surprises for homebuyers and homeowners.
If you're concerned about this issue, talk with your Texas REALTOR® and let them know you learned about it on TexasRealEstate.com.
