Does anyone know anything regarding FHFA Notice of Proposed Guidance...

[amyrose2712]

I just received a letter from my condo association asking us to send a letter petitioning congress to stop it. I think it has something to do with "transfer fees" ? They state that if passed our condo would be unmarketable. I think And we do intend to sell eventually. To be perfectly honest even after reading about it I still dont know exactly how it will effect people because I'm not at all knowledgeable in real estate or economics. Any help would be appreciated. Thanks.

[msanthrope]

1. Is this the transfer fee Notice???

I cannot give you legal advice over the Internets....I will not give you legal advice over the Internets.

But, having read the notice, it seems to me that the Obama administration wants to end your developer, or condo association, being able to charge a fee (per the housing covenants) every time you transfer the property....

Fees are great, per the government, if they fund development projects or upkeep. BUT, if they go to individuals, like let's say the developer, to provide an income stream, they don't help your community, and give the developer profits long after their job is done.

http://www.fhlbsf.com/about/wa/regulations/pdf/081610PrivateTransferFeeCovenants.pdf

When I worked in a state that had 'leasehold' interests, it was not uncommon for developers to collect fees DECADES after building. This was done to provide a tax-free income.

You might wish to ask your condo association where the fees go, and make up your mind from there.

ALSO--consult a lawyer. People on the Internets are NOT legal counsel.

[amyrose2712]

2. Thanks....

I didn't realize I was asking for legal advice. I just wanted to understand the terms and what it all means to the people that own property. Does it actually help or hurt people? Not so much me in particular.

[msanthrope]

3. Well, I think it depends who the fees are going to.

I would find out who the fees are going to, from the condo association, and make your decision from there.

[suston96]

4. Google this: FHFA Notice of Proposed Guidance

We have fees in our community payable at acquisition of property. One of them is a transfer fee. I am looking into them as we speak.

Your condo association should explain to you in more detail what they are talking about.

[amyrose2712]

5. Thanks. im still not sure. it seems

Like a scare tactic