On July 1, 2011, Governor Corbett signed House Bill 442 into law. This law prohibits private transfer fees entered into on or after July 1, 2011. Private transfer fees are fees future land owners are obligated to pay to prior owners upon the transfer of the real property or for the right to make or accept the transfer of real property. These obligations run with the title to real property. A private transfer fee obligation recorded or entered into prior to July 1, 2011 is enforceable provided that the fee is disclosed in the contract for the sale of the real property and the holder of a private transfer fee obligation complies with the notice requirements of the new law by recording a separate document with the recorder of deeds office for the county in which the property is located before January 1, 2012.
If you hold a right to a private transfer fee please contact
the author of this article, Wayne S. Martin, by calling (717) 763-1383 or
via email at WMartin@ReagerAdlerPC.com to have the
proper notices prepared and timely recorded.