Anderson, SC – June 14, 2010 – (RealEstateRama) — Private transfer taxes are a new and troubling development in real property law. Private transfer taxes allow for private parties to impose real estate transfer taxes or fees on the sale of real property. Private transfer taxes are similar to the real estate transfer tax, except that it is a private party that collects the fee upon every single sale of a particular home, rather than a governmental entity.
As bad as this sounds, the good news is that the South Carolina REALTORS® are seeking to proactively protect consumers from the imposition of private transfer taxes or fees. SCAR is opposed to private transfer taxes since they will cause problems for people in South Carolina who want to purchase a home, from higher costs to a potential difficulty in obtaining title insurance.
Legislation that would enact a prohibition on private transfer fees was successfully attached to S.879 when it was considered on the House floor. The Senate removed that amendment and sent the bill back to the House where it remains pending. On Tuesday, June 15th House members will have the opportunity to consider S.879 as returned to them by the Senate. SC REALTORS® are asking House members to non-concur with the Senate amendments and force the bill to a conference committee.
Crazy isn’t it? That somehow a developer or builder would be paid a fee or tax every time a property is sold?
Please contact your South Carolina state representative and let them know how you feel about this controversial subject.