This legislation benefits consumers by banning the enforcement of private transfer fees. It has the support of the Colorado Association of Realtors.
SB 234 Residential Real Property Transfer Fee Covenants by Sen. Cheri Jahn (D-Wheatridge) and Rep. Tom Massey (R-Poncha Springs) passed 3rd Reading in the House this week. Senate Bill 234 bans the enforcement of non-exempted private transfer fee covenants recorded after the effective date of the bill and requires all non-exempted covenants in place prior to enactment be recorded.
CAR has been concerned about private transfer fees paid to a third party upon the transfer of real property. The fee is usually paid by the seller and can either be a fixed amount or a percentage of the sales price. In a typical situation, a property owner records a covenant subjecting the property to a private transfer fee (often, the first sale is exempted). For as long as the covenant is in place, which can be up to 99 years or longer, every time the property is sold the private transfer fee must be paid to the original owner and/or third party. And at least one out-of-state company that markets private transfer fees to property owners takes part of the private transfer fee payments that result from its marketing efforts. SB 234 is now headed to the Governor’s desk to be signed into law.
SB 234 Residential Real Property Transfer Fee Covenants by Sen. Cheri Jahn (D-Wheatridge) and Rep. Tom Massey (R-Poncha Springs) passed 3rd Reading in the House this week. Senate Bill 234 bans the enforcement of non-exempted private transfer fee covenants recorded after the effective date of the bill and requires all non-exempted covenants in place prior to enactment be recorded.
CAR has been concerned about private transfer fees paid to a third party upon the transfer of real property. The fee is usually paid by the seller and can either be a fixed amount or a percentage of the sales price. In a typical situation, a property owner records a covenant subjecting the property to a private transfer fee (often, the first sale is exempted). For as long as the covenant is in place, which can be up to 99 years or longer, every time the property is sold the private transfer fee must be paid to the original owner and/or third party. And at least one out-of-state company that markets private transfer fees to property owners takes part of the private transfer fee payments that result from its marketing efforts. SB 234 is now headed to the Governor’s desk to be signed into law.
