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.
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.
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.