AUSTIN (San Antonio Express-News)
– Gov. Rick Perry has signed legislation banning private transfer fees attached
to home purchases, the San
Antonio Express-News
reported yesterday.

Such fees throw a percentage of a home’s sale price back to the
original developer each time the home is sold.

Under the new legislation, new private transfer fees will not be allowed.
Developers who have existing fees on properties must file a notice of the
obligation in county property records by Jan. 31, 2012, and update it every
three years. If they fail to meet this requirement, the transfer fee is void.

Real Estate Center attorney Judon Fambrough and Research Economist Dr.
Harold Hunt discussed private transfer fees on the Real Estate Red Zone
(episode 26).