PA Bans Private Transfer Fees

Private Transfer Fees


Pennsylvania became the 36th state to ban private transfer fees. On June 24, Governor Tom Corbett signed HB 442 into law, becoming Act 8 of 2011. Private transfer fees are part of a covenant attached to a property deed that forces the seller to pay 1 percent of the purchase price to a private third-party entity every time the property sells over the next 99 years. These fees would have cost unsuspecting homeowners thousands of dollars in additional closing costs.