Pennsylvania Senate Votes to Ban Private Transfer Fees

Mar 2, 2011

The Pennsylvania State Senate has just passed, unanimously, Senate Bill 353 banning private transfer fees. CAI’s Pennsylvania Legislative Action Committee supports this Bill and is working with a coalition of interest groups across the state including the PA Realtors Associations, PA Land Title Association and PA Bankers Association to seek its adoption.

Senate Bill 353 would prohibit the use of certain private transfer fees (PTFs) which are covenants attached to the deed of a property that force the seller to pay one percent of the sale price to a developer, in conjunction with an out-of-state privately held company, for 99 years. PTFs constitute an unreasonable restraint on the transferability of real property, and are a private investment vehicle without any valid development purpose designed only to benefit the developer who imposes them. SB 353 preserves the rights of community associations to levy transfer fees for capital improvements which help fund replacement reserves necessary for the maintenance and improvement of the community, as well as fees which may be charged by an association, or its agent, for the statutorily-required resale certificate.

The Bill will now be considered by the PA House of Representatives and CAI will keep you advised of its progress. Please monitor your email in the event CAI needs you to contact your state representative regarding this Bill.

For more information, read the statement released today by Senator Wayne Fontana, chief sponsor of the Bill.

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