Transaction Fees: Home Builders Want To Rob Homebuyers For 99 Years
• Money.CNN.comBut in some new developments, homebuilders are including in contracts a 1% fee to be paid to them every time the house is sold -- for 99 years. And the money doesn't go for improvements or upkeep: It's just money in the builders' pockets.
The 1% fee home builders are demanding they be paid every time the house is sold -- for 99 years will cost home sellers more than 1%. Historically, home sellers try to reduce the listing/selling broker's commission to make up such costs. That generally results in reducing brokers' incentive to show their property. Consequently causing home sellers to drop their asking price to get buyers and brokers interested in their property. Lenders will have to consider the 1% fee as a primary lien against a property's equity when making mortgages to subsequent buyers.