Law Commons^™

Private Transfer Fees: Developer Exploitation Or Legitimate Financing Vehicle, Burke T. Ward, Jamie P. Hopkins

Villanova Law Review

A private transfer fee (PTF) is typically created when a developer or homeowner decides to attach a covenant to the title of the home. This covenant, the PTF covenant, attaches the PTF to the real property. These covenants require payment of a fee—typically stated as one percent of the property's sale price—upon each resale or transfer of the property and often survive for a period of ninety-nine years. The recipients or owners of the PTF (PTF beneficiaries) can be almost anyone, including property developers, PTF developers, home owner associations (HOA), private investors, state governments, and non-profit charities. Usually, the PTF …