For Immediate Release: Contact: Rachel Wolf
April 14, 2011 (202) 331-2120
Virginia Becomes 24th State to Restrict Dangerous Wall Street Home Resale Fees
Broad, Bipartisan Coalition Thanks Governor McDonnell, Senator McDougle and the Legislature for Standing Up for Homeowners by Banning Fees
RICHMOND, Virginia – Governor McDonnell took swift action to protect Virginia homeowners by signing SB 931 to restrict Wall Street Home Resale Fees (also known as “private transfer fees”). The new law sponsored by Senator McDougle (R-Mechanicsville) 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 Virginia consumers,” said Senator McDougle, who sponsored the legislation. “They have no place in the Virginia real estate market. We’ve made sure that when a homeowner buys a new property, he or she owns that home free and clear.”
“The Governor and Legislature stood up for homeowners by protecting consumers from these predatory fees,” said Tim Akers, Virginia 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.”
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.
Virginia becomes the 24th 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. Virginia joins Arizona, Arkansas, California, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Oregon, South Dakota, Texas and Utah 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.
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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.
For more information, go to www.stophomeresalefees.com or visit us on Twitter or Facebook.
