Private Transfer Fees Lower the Cost of Homeownership


Attached please find an analysis regarding the impact of transfer fees on the cost of homeowership. Private transfer fees offer consumers the opportunity to pay less for their home today in exchange for the obligation to pay a transfer fee upon sale. A PTF changes the economics of the real estate transaction by lowering the cost of ownership; a buyer who pays less for a home today will save on various costs associated with homeownership, including closing, carrying, and opportunity costs.

Private Transfer Fees Lower the Cost of Homeownership

Attached please find an analysis regarding the impact of transfer fees on the cost of homeowership. Private transfer fees offer consumers the opportunity to pay less for their home today in exchange for the obligation to pay a transfer fee upon sale. A PTF changes the economics of the real estate transaction by lowering the cost of ownership; a buyer who pays less for a home today will save on various costs associated with homeownership, including closing, carrying, and opportunity costs.

Happy Birthday Wishes to the Data Quality Act

December 21, 2010 marks the tenth anniversary of the Data Quality Act (DQA), also known as the Information Quality Act, 44 U.S.C ยง 3516, note.

The DQA has deep roots developed over nearly a half-century as the result of a seed planted during the Johnson Administration which germinated in the Nixon Administration, was watered by the Carter Administration and whose product was harvested by the Reagan Administration, made available to the public in the Bush I Administration and subsequently enhanced by the Clinton Administration and promoted by the Bush II and Obama Administrations. See: http://thecre.com/ombpapers/SystemsAnalysisGroup.htm and http://thecre.com/quality/20010924_fedinfotriangle.html

New Jersey Bans Private Transfer Fees

On December 13, New Jersey became the 19th state to ban private transfer fees. New Jersey’s ban on private transfer fees contains a carve out exception for transfer fees paid to homeowner associations, cooperatives, and charitable organizations. In addition, New Jersey’s ban on private transfer fees does not apply to existing covenants established prior to the law. New Jersey’s law banning private transfer fees comes ahead of FHFA’s anticipation regulation on transfer fees.

Click here for the story

Click here to read the law

Revised, but Make A Positive Impact

1. Yes, a rule should be issued. A rule is definitive whereas guidance opens the door to various and vague interpretations.

2. Yes, an environmental impact statement on the transfer fee proposal will show the impact that will be felt by hundreds of thousands of Community and Property Associations around the country. It will also show the trickle-down effect that impacts employees of those associations as well as the residents that live in those associations.

Flip tax essential for most middle-class NYC co-ops

This proposed rule would effectively bar the use of the Flip Tax. In New York State, where I serve on the board of a pre-war, middle-class co-op building, the Flip Tax is used to build up reserve funds in order to make essential repairs to aging housing stock; repairs that would otherwise necessitate possibly unaffordable assessments to shareholders. The Flip Tax is not used as a way to make a quick buck in New York: rather, it is one of the few ways to maintain older buildings without placing undue financial burdens on middle-class shareholders.

Jenny Dubnau
Jackson Heights, NY

I was a coop buyer!

The flip tax deterred me from buying a coop. I understand most coop in NYC has flip tax and keep their maintenance fee low. However, many coop has insane flip tax, 10% of total sale price, 25% of profit are not uncommon. I understand long term coop residents who support flip tax. They never planning on leaving the coop, and never have to worry about resale or flip tax. For young people looking to buy their starter home and sell when they have kids, coop suppose to be the only affordable option in NYC, With flip tax, this option is gone.