Texas Governor signs bill eliminating real estate transfer fees

Recently, Texas Governor Rick Perry signed a bill into law that forbids private transfer fees on real estate.

These fees are typically written into deed restrictions and kick back 1 percent of a home's selling price to the property's developer any time the deed is exchanged among the home's owners during the next 99 years.

Texas' House and Senate both overwhelmingly approved the bill, which Perry then signed into legislation. With the bill's passing, Texas is now among 36 other states that have banned or restricted the fees during the last several years.

According to a report, these fees are not common throughout Texas, however, they have seen an increase lately, as developers look for new ways to generate income during the recession.

With more sales taking place in the Houston real estate market, these developers could have stood to earn a reasonable income from the transactions. Houston's job sector has experienced significant increases, leading to greater home sales. However, with the bill's passing, the additional income will be abolished for the developers.

Courtesy of 2M Realty News