These days we all have been hearing a lot about Private transfer fees, capital recovery charges, reselling fee and some private transfer fee.
Hidden Transfer fees
It’s seen that most of the hidden fees are already included in the price or either nicely mentioned on the document. Many Home owner associations associate transfer fees into the same document making it to be the home owner dues. The developers use stand alone equipment which is referred to as private transfer fee covenant and nicely expressed with a header in bold.
Homeownership: costlier or cheaper
It is believed that the cost of homeownership increases with an increase in transfer fees. This information can be termed as a myth as this cost lowers the cost of home ownership. Home owner gets benefitted as he pays less up front and in return he agrees to pay the fee at the time of future sale. At the time of a future sale, he is more likely to save more in the interest payments than the total transfer fee.
Transfer fees new or old?
It has been seen that people believe that transfer fees are recently introduced but they are unaware of the fact that these fees have been around for many decades. Across the country, various homes have transfer fees which are dedicated to a variety of uses from the maintenance to the charity and sometimes to infrastructure reimbursement.
Initial buyer and later buyer
It’s believed that each buyer who makes a purchase pays less up front and enjoys the savings on the transactions and interest can at a later stage sell the complete for the lesser price. When the fee expires, the value of home will automatically rise as the encumbrance will be removed.