The Coalition recognizes the long-standing principle in real estate law that any covenant that burdens the land should also benefit the land. Unfortunately, Freehold Capital Partners’ for-profit transfer fees provide no service or benefit to homeowners and only raise the costs of home ownership. These Wall Street Home Resale Fees direct money straight back to Freehold and other third parties, benefitting their bank accounts but not the land.
Resale fees levied by homeowners' and condo associations, in contrast, direct money back towards homeowners in the form of infrastructure and amenity improvements. This is what differentiates them from the private, for-profit transfer fee that the Coalition opposes.
Take it from some of the biggest news outlets in the country: the New York Times, the Washington Post, CNN, Forbes, the Wall Street Journal, and the Washington Examiner, have all reported on the danger of the private fee structure. The use of Wall Street Home Resale Fees has already been restricted in 18 states, and the Federal Housing Finance Agency has issued a guidance to restrict Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from investing in mortgages with these fees. The fees have been called “unconscionable” by the American Law Institute, and the US Department of Housing and Urban Development and the Federal Housing Agency have publicly opposed their use.
Don’t let Freehold muddy the water on this one—make sure that every homeowner knows the difference between their sneaky for-profit covenants and the communal amenities structure that HOAs and Condo associations use to benefit the property and the community.
Stay up-to-date by coming back to the site for the latest news and information. And if you’re facing a private transfer covenant on your property, make sure we hear from you!
