Indiana Governor Mitch Daniels recently signed legislation to restrict Wall Street home resale fees, also known as ""private transfer fees."" Indiana is the 28th state to ban the use of these fees.[IMAGE]
""These fees infringe on property rights and may hurt Indiana consumers,"" said state Rep. Mike Speedy (District 90), who sponsored the legislation. ""They have no place in the Indiana real estate market. We've made sure[COLUMN_BREAK]
that when a homeowner buys a new property, he or she owns that home free and clear.""
The 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.
""In passing this law, the Indiana Legislature is protecting homeowners from these predatory fees,"" said Wendy Gibbons, president-elect and government affairs committee chairperson, ""Indiana Land Title Association"":http://www.indianalandtitle.org. ""This law safeguards the real estate market and protects the property rights of Indiana homeowners.""
Indiana joins Arizona, Arkansas, California, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Texas, Utah, Virginia, and Washington in restricting the 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.