The Consumers Union and the Consumer Federation of America—two of the most recognized and influential consumer protection organizations in the nation—joined the Coalition to Stop Wall Street Home Resale Fees. Adding their voices to the diverse coalition of groups opposed to predatory private transfer fees is a major milestone in the growing momentum to stop these fees.
Wall Street Home Resale Fees are incorporated into the sales contract for homes, often without the knowledge of the home buyer. The scheme inserts language into home covenants that requires a percentage—usually 1%—of the sales price to be paid to a private third party every time the property is sold, typically for 99 years. The fee is paid even if a homeowner has no equity remaining, or if they are losing money on a home sale. The fee is paid on the entire sales price, even if the seller made renovations or additions to the property that significantly increased the value of the property.
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