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June 16. 2011 12:00PM - Last modified: June 16. 2011 12:21PM

Bill to ban private real estate transfer fees heads to Corbett

By Jason Scott

A bill spearheaded by state Rep. Sue Helm, R-Dauphin County, banning private transfer fees on real estate sales and requiring disclosure of existing fees in the commonwealth, passed this week in both the Senate and the House.


House Bill 442 heads to Gov. Tom Corbett’s desk for consideration. It is unclear whether he will sign the legislation, which received overwhelming support in the General Assembly.

A spokesperson for the governor did not immediately return a call seeking comment.

The private transfer fee, also known as a resale fee, is part of a covenant attached to the property deed that forces the seller to pay 1 percent of the purchase price to a private third-party entity every time the property sells over the next 99 years, the association said, adding to closing costs.

“A private transfer fee is unfair to the home buyer and home seller and only hurts the real estate industry, which is trying to make a recovery,” Helm said in a statement. “As a real estate broker, I know first-hand that most home buyers are unaware this fee even exists.”

The Pennsylvania Association of Realtors pushed hard for the bill’s passage over the last year. President Guy Matteo called the passage a win for consumers.

If the governor signs the bill, Pennsylvania will become the 28th state to prohibit private transfer fees.

 


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