Title search companies from the title insurance market have joined a coalition comprised of government employees, labor unions, property rights associations, veterans and the National Association of Realtors among others. The group aims to campaign against housing resale fees and has named their effort, Coalition to Stop Wall Street Home Resale Fees.
The coalition's focus is transfer fees attached as liens to house foreclosures for sale. This means that every owner who subsequently owns the property had to pay the dues every time the dwelling is resold within a 99-year period. According to the proponents of the resale fee, the concept attracts investors and helps developers raise money for projects. On the other hand, critics of the fees argued that these liens cause the equity of properties to decline and also add confusion to the process of real estate selling.
The National Association of Realtors has been known as a staunch critic of the resale fees. It has led campaigns seeking to ban private resale fees or transfer fees. So far, more than a dozen areas have restricted or put a stop to the concept of transfer fees, including Ohio. The coalition, including its title search companies members, has recently brought the battle to the federal stage when it asked the U.S. administration to weed out transfer fees from all mortgages supported by Freddie Mac, Fannie Mae and the Federal Housing Administration.
The Freehold Capital Partners of New York, an advocate of the transfer fee, has earlier explained that the private resale fee is a way to pay for costs of development in an era when builders are not able to secure funding for such developments in any reasonable manner. Other groups that support the concept have also asserted that the transfer fees are good for the overall condition of the housing and construction markets.
Meanwhile, each group member of the coalition has their own reasons for participating in the campaign against transfer fees. Title search companies, labor unions and consumer advocates all believe that the fee concept is bad for consumers and represents a public policy that is thoughtless and harmful to consumers.
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