Posted on 03/30/2010 8:10:56 AM PDT by Responsibility2nd
If a transfer fee allows a home buyer to get into a home for less money - realizing years later there will be a 1 percent fee to be repaid - then I don’t see a problem with this.
Didn’t read the whole article but it would seem there would issues around title to property or clouds of encumbrance.
I wouldn’t buy it.
If a dead Elvis can generate income, why can’t developers enter into a contract to share the future sales?
“The home building industry has made screwing people into a fine science!”
Well, they see the government doing it daily and no one stops them so why should private industry not get on the gravy train.
Eventually I would expect Goldman Sachs to own each and everyone of these encumbrances. Or maybe Disney. It likes this sort of revenue stream.
It ain’t the home building industry that has made screwing people, it’s the home MORTGAGE industry.
(Thanks Bawney!)
So basically it seems they want to equate building or designing to copyright. Okay. You sold the home, it's now under the first-sale doctrine of copyright. You don't get a penny from subsequent resales.
So let’s say I substantially improve the property buy building myself an addition to the house the developer built. Why should I have to pay the full transfer fee if I did much of the work that created the upgraded value myself? This is a lawsuit waiting to happen.
Umm....well...maybe because you sold the house????
Maroons.
This is just going to encourage people to go further into debt for homes and home improvements based on some phonus-balonus pipe dream of price appreciation, which is one of the main things which got us into the mess we are in now.
Suppose the developer sells me a house in 2007 for $500,000 with one of these 1% clauses in the deed. If in 2013 I have to sell the house at $375,000, is he going to kick in one percent of my loss?
No problem as long as it is not buried in some document but rather fully disclosed and specifically accepted by the buyer.
Developer appears to be a synonym for thief.
They can do whatever they want, I suppose. Hell will freeze over before I buy such a tainted property.
And P.T. Barnum's corollary - - “There's a sucker born every minute”.
If you sign a contract with this in it, or purchase the property from someone who did, you're hosed.
Just make sure that the property is not encumbered with this. It ought to show up in a title search. That's what they are for.
Excellent point. Unfortunately if someone is sufficiently retarded (I’m not afraid to use the word!!) to buy a house with this specific encumbrance in the deed, I doubt that first-sale is a defense.
This is a great way for politicians to get the Developers in their pocket - and get major "donations" from that group.
When you rob Peter to pay Paul, you can count on Paul's support.
It’s simple. Simply refuse to buy any property that has the transfer fee written in. I know some idiots will buy anyway but if most people won’t then these fees will go the way of the DoDo bird when the “developers” find out they can’t sell the crap they build.
>>“Maybe you planted a tree, added on a room or rehabbed a home,” the Web site said in 2007. “Fifty years from now, when a family is enjoying the property that you improved, and making a profit by selling the property you improved, why shouldn’t you benefit? Of course you should.” <<
Yeah! And what about all the people that actually held hammer in hand to do the work. What if, as a condition of employment, they said they wanted .01% of every sale for 99 years? I suspect they would not get the job.
And what about ME! I was a programmer for a bank for years, writing programs that they benefited from for many years after that. I should get a piece of it!
IOW, it is true. All you have to do is get the buyer to buy into it. Sometimes that might be a challenge. :)
But if someone is stupid enough, well...
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