The imposition of private transfer fees is prohibited when conveying land from one person to another.
Rep. Gail Kulick Jackson (DFL-Milaca), who sponsors a new law with Sen. Linda Scheid (DFL-Brooklyn Park), said private transfer fees are “a future stream of income created by developers in restrictive covenants.” The covenants usually dictate that a percentage of every future sale of the property for up to 99 years be paid back to the original developer. She said these are being sold as securitized instruments in other states where such fees have popped up.
Without the change, there would be additional expenses with private transfer fees included in each successive sale. Jackson is aware of one case in Minnesota, and said that 43 other states are addressing the issue.
Jackson said the builders, land title, realtor and state bar associations support this, as does the U.S. Department of Housing and Urban Development. The law is effective May 20, 2010.
The law also changes an effective date contained in Chapter 238 enacted earlier in the session from Jan. 1, 2011, to July 1, 2011. It applies to a provision that would provide for a 20-year period during which an action to collect a child support judgment could be maintained, rather than the existing 10-year period provided in law. This change is for technical real estate search reasons.
No related stories found