News release from Tennessee Land Title Association:
NASHVILLE, Tennessee – Governor Haslam took swift action to protect Tennessee homeowners by signing SB 1845 and HB 1644 to restrict Wall Street Home Resale Fees (also known as “private transfer fees”).
SB 1845, sponsored by Senator Lowe Finney (D-Jackson) and HB 1644, sponsored by Representative Vance Dennis (R-Savannah), places a ban on these fees, a dangerous new financial scheme that steals home equity, lowers home resale values and adds another layer of difficulty to selling a home.
“These fees infringe on property rights and hurt Tennessee consumers. They have no place in the Tennessee real estate market,” said Senator Finney sponsor of SB 1845.
“We’ve made sure that when a homeowner buys a new property, he or she owns that home free and clear of any unreasonable and unnecessarily burdensome liens,” said Representative Dennis sponsor of HB 1644.
“The Governor and Legislature stood up for homeowners by protecting consumers from these predatory fees,” said Mark Rosser, Tennessee Land Title Association President. “This bill is an important step in enhancing consumer protections, safeguarding the real estate market and protecting our property rights system in Tennessee.”
Manhattan-based Freehold Capitol Partners is leading the push to add these fees to home purchase contracts. The fees require that a percentage of the final sale price of a home be paid to a private third party every time the property is sold, typically for 99 years. Freehold is attempting to then sell the right to collect these fees on Wall Street–all the while padding investors’ pockets while stealing equity from homeowners.
Tennessee becomes the 35th state to have restricted the use of Wall Street Resale Fees.
The bill is the latest in a series of government actions to limit Wall Street Home Resale Fees. Tennessee joins Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia and Washington in restricting the dangerous fees. On the federal level, the Federal Housing Finance Agency has issued a proposed rule that would prevent government-sponsored entities from investing in mortgages with these fees.
—
The Coalition to Stop Wall Street Home Resale Fees has organized to fight the dangerous financial scheme of transfer fee covenants and to protect homeowners across the country. Together, we are fighting to ensure that homeowners keep full equity in their home, and have the freedom to buy or sell their home without paying-off a private third party.