American Land Title Association Applauds Ohio Legislature

Posted by Orb Staff on June 16, 2010 No Comments
Categories : Residential Mortgage

erican Land Title Association (ALTA) is praising legislative action taken earlier this week by Ohio Gov. Ted Strickland. On Monday, Strickland signed House Bill 292, establishing a new law that places a ban on Wall Street Home Resale Fees (also known as ‘private transfer fee covenants’). Developers, in consultation with Wall Street advisers, are attempting to add language to home-purchase contracts requiring that a percentage of the sales price be paid to the original corporate owner of a property every time the property is sold, typically for 99 years, explains ALTA in a statement. The right to collect these Wall Street Home Resale Fees would then be securitized and sold to enrich investors at the cost of stealing equity from consumers, forcing homeowners to pay a large fee to sell their homes and adding a complicated legal roadblock to the home-sale process, ALTA says. ‘There was a broad coalition of organizations – including the Ohio Land Title Association, Ohio State Bar Association, Ohio Association of Realtors and Ohio Bankers League – who saw the danger this hidden financial burden places on home buyers,’ says Kurt Pfotenhaur, CEO of ALTA. ‘ALTA is stressing the importance of organizations taking quick action to protect home buyers." With the passage of H.B.292, Ohio becomes the 12th state to have restricted the use of Wall Street Home Resale Fees, ALTA adds. SOURCE: [link=http://www.alta.org/index.cfm]ALTA

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