Private Transfer Fees - What you should know.

Private transfer fee covenants, referred to as a “PTF” or “PTF covenant” have been around several years in Texas. A PTF covenant requires the seller to pay a fee to a third party when a property is sold. These covenants are usually found in the restrictive covenants for a subdivision but may also be contained in a deed or separate document. Typically, it requires the payment of a transfer fee of 1% of the sales price each time the property is sold. The covenants usually have a life span of 99 years.

This is typically seen in the newer subdivisions and can impact the sale or purchase of a property. For more details, you may read entire article at http://tiny.cc/xb4ax