AUSTIN, Texas, March 21, 2011 /PRNewswire-USNewswire/ -- The Texas Association of Realtors (TAR) today acknowledged leaders throughout the Texas Capitol for advancing a measure that would protect homeowners from hidden fees when buying and selling a home.
The legislation, included within House Bill 8 and Senate Bill 1459, would prohibit private transfer fees on real estate. These fees require a buyer to pay a percentage of the sales price of the home to a private entity each time the property is sold for a designated period of time, frequently 99 years.
The Texas Association of Realtors has actively supported this legislation. TAR Chairman Dwight Hale explained, "Private transfer fees are simply a scam. They serve no public purpose and provide no benefit to buyers or communities while decreasing housing affordability. Private transfer fees have no place in Texas real estate, and I applaud Representative Darby and Senator Harris for their leadership in eliminating them."
The legislation addressing these private transfer fees was authored by Representative Drew Darby (R – San Angelo) in the House and Senator Chris Harris (R – Arlington) in the Senate. Today, the House Business and Industry Committee, led by Chairman Joe Deshotel (D – Beaumont), heard House Bill 8.
Private transfer fees on real estate are a growing problem in Texas. They're often not discovered until a real estate transaction closes, and they can cloud a property's title, making it difficult to sell. The proposed legislation addresses this problem by implementing disclosure and transparency requirements on existing private transfer fees and prohibiting future fees, with limited exceptions, such as homeowners associations.
To learn more about this topic or other ways in which Texas Realtors advocate for homeowners, please visit www.TexasRealEstate.com.
About the Texas Association of REALTORS®
With more than 80,000 members, the Texas Association of REALTORS® represents all aspects of the real estate profession. Texas REALTORS® have championed a number of legislative issues enhancing the lives of Texans, including playing a role in the passage of meaningful property tax appraisal reform, ensuring consumer protection in home equity lending laws and advocating for billions in property tax reductions. To learn more about Texas REALTORS®' legislative advocacy on behalf of its members and homeowners, visit TexasRealEstate.com.
SOURCE Texas Association of REALTORS