Add Tennessee to the long list of states that have banned private transfer fees.
The Volunteer State is now the 35th state to outlaw the fees, which are attached to property deeds and force sellers to pay a share of the purchase price to a private third-party entity each and every time the property changes hands. The charge is often 1% of the price, and remains as a covenant for up to 99 years.
In addition, Texas has changed its law, which now requires notification and re-filing of the liens every three years for fees that were in place prior to passage of the legislation. Advocates are hopeful that by requiring a re-filing, private transfer fees will be cleared from titles if the beneficiary fails to act and keep payee information current.
The across-the-board success in prohibiting the fees is largely the handiwork of a national coalition of organizations called the Coalition to Stop Wall Street Home Resale Fees. The group includes the National Association of Realtors, American Land Title Association, Consumers Union and the Consumer Federation of America.
