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North Dakota is the 27th state to restrict home resale fees, also known as ""private transfer fees."" Governor Jack Dalrymple recently signed bill SB 2149 to ban them.
[IMAGE]""These fees infringe on property rights and hurt North Dakota consumers,"" said Sen. Tony Grindberg (R-Fargo), who sponsored the legislation. ""They have no place in the North Dakota real estate market. We've made sure that when a homeowner buys a new property, he or she owns that home free and clear.""
[COLUMN_BREAK]Private transfer fees require that a private third party receive a percentage of the final sale price of a home every time the property is sold, typically for 99 years.
""The governor and legislature stood up for homeowners by protecting consumers from these predatory fees,"" said Paula Bachmeier, VP of the ""North Dakota Land Title Association"":http://www.ndlta.org/. ""This bill is an important step in enhancing consumer protections, safeguarding the real estate market, and protecting our property rights system in North Dakota.""
The bill is the latest in a series of government actions across the country to limit the fees. North Dakota joins Arizona, Arkansas, California, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Carolina, Ohio, Oregon, South Dakota, Texas, Utah, Virginia, and Washington, in banning transfer fees.
On the federal level, the ""Federal Housing Finance Agency"":http://www.fhfa.gov issued a proposed rule that would prevent government-sponsored entities from investing in mortgages with these fees.
