What Is A Private Transfer Fee? Learn More About This Important Real Estate Term
Are you planning on selling your Austin Texas home? If so, one fee that you can expect to pay is a private transfer fee.
What exactly is a private transfer fee? It’s a fee that has to be paid each time a home is sold and it must be collected along with any HOA fees.
Are Private Transfer Fees Still Enforceable?
In 2019, some home buyers, sellers and Realtors® may feel that private transfer fees are not enforceable, the reality is that some Private Transfer Fees (PTFS) that were created before 2012 may still be enforceable due to the following statutorily process mentioned here:
“Each owner of a Lot, upon the transfer of title to such Owner’s Lot, will pay a one-time assessment to Developer in the amount of Five Hundred and No/100 Dollars ($500.00) per Lot.”
“This property is subject to a Private Transfer Fee. The private transfer fee is equal to ONE PERCENT (1%) of the SALES PRICE paid in connection with each transfer of title to all or any part of the real property.”
How and When Are Private Transfer Fees Calculated?
Private transfer fees are calculated at the time of closing then paid by the homeowner.
Most homeowners who have to pay private transfer fees will be shocked, especially if their home is worth $500,000 or more because the higher the value of the home, the PTF could amount to $5,000 or more so it’s understandable that a homeowner could face the sticker shock of having to pay this fee.
One of the best thing’s homeowners can do before closing is to work closely with their title company to review their title commitments and verify if they will be expected to pay a private transfer fee or not.
To learn more about Private Transfer Fees, or to speak with me about selling your home, contact me today by calling (512) 944-7378 or click here to connect with me online.