Legislation Prohibiting Private Transfer Fee Expected in the House
March 22, 2011
Department: Michigan Association of REALTORS
MAR-supported legislation introduced prohibiting "private transfer fees" is expected to be taken up on the House floor this week. House Bills 4227 and 4228, introduced by Representative Paul Opsommer (R-DeWitt) and Representative Bruce Rendon (R-Lake City) are a pre-emptive strike on programs that have sprung up in other states whereby a private party collects a fee every time a property is sold in a development, similar to a transfer tax. Private transfer fees serve as an encumbrance upon private property rights. These fees are an excessive restraint on the transferability of property and also prey upon homebuyers.
