Taxes relative to the real estate transaction, such as the realty transfer tax, and those associated with homeownership, such as the property tax, are a major burden to buyers and homeowners alike. An increase in any industry-related tax would have a negative impact on housing costs and the industry as a whole.

 

PAR successfully passed House Bill 442 (Helm) into law on June 24, 2011. Act 8 of 2011 prohibits private transfer fees during the transaction of real estate. A private transfer fee (PTF) is a 1% fee paid to a third party private company every time the property transfers for 99-years. Unlike the realty transfer tax, this money is put in the hands of private investors and not to a governmental body. Act 8 also creates burdensome disclosure and communications requirements that must be met by the entitled third-party.