Private Transfer Fees Recorded on Homes in CA Must Be Disclosed to All Buyers

The real estate developer at Ladera Ranch at South Orange County and other areas in CA have imposed and recorded Private Transfer Fees that are required to be paid by all buyers (PTFs) each time the home is sold.

These PTFs require subsequent purchasers of real property to pay a fee to a private entity upon future sales of the property.

This is a recorded covenant running with the land.

CA Assembly Bill 980 was made law in CA on October 14, 2007, and defines disclosure and recording obligations regarding PTFs.

Private transfer fees (PTFs) are fees imposed by private parties that require the payment of a specified amount of money (usually a percentage of the sales price) upon subsequent sales of the real property. Such fees are normally recorded on new common interest subdivisions by the developer to pay either the developer or a third party entity (sometimes created by the developer).
PTFs could increase the cost for buyers to purchase a property. If a buyer discovers the existence of such a fee and that additional dollars must be paid in order to purchase the property, the buyer may choose to cancel the contract.

Source of information is the California Association of Realtors.

Coldwell Banker residential brokerage

By Harrison K. Long. We provide professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Contact us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

About Harrison K. Long

Real estate and business attorney. CA State Bar Association attorney member #69137. Professional real estate representative, REALTOR®, GRI, Real estate broker, CALBRE #01410855. Broker associate, HomeSmart Evergreen Realty, Irvine, CA. Providing real estate legal information and services for property owners, estate trustees, executors and administrators, fiduciaries, bankers, investor group managers, with their best decisions about homes and real estate. Orange County REALTORs® (member and prior service on its board of directors). "Realtor of the Year 2016" award by the Orange County REALTORs®. California Association of REALTORs® (now serving on its board of directors). National Association of REALTORs® member. Contact by cell or or text at 949-701-2515.
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