We, the undersigned Realtors, urge the NAR Leadership to reverse its decision opposing private transfer fee transactions for the following reasons:
1. Economist who have studied the impact of private transfer fees concur they result in MORE affordable housing. More affordable housing stimulates sales for buyers, sellers and Realtors.
2. Private transfer fees make it possible to put hundreds of thousands of tradespeople back to work. Tradespeople who are out of work don't buy houses.
3. With traditional lending sources for Developers drying up or non-existent, Realtors have an opportunity to introduce them to private transfer fees which is a more equitable way to allocate costs of constructing long-term infrastructure, instead of front-loading the first buyers. This creates a Win-Win for Realtors and Developers. It also creates a Win-Win for all future buyers because private transfer fees make the homes more affordable. This raises the level of the relationship to a partnership between the Realtor and the Developer thereby resulting in greater sales opportunities for both.
4. The current efforts by NAR to bring legislation that would prevent private transfer fees is hurting both Realtors and Developers. Banks have stopped or reduced the funding available to Developers. As a result many Developers are going out of business. Private transfer fees offer a better way to allocate the cost of long-term infrastructure. This gives Developers a second chance in this challenging economy.
5. On the tail end of financial failure for many small business owners, private transfer fees provide a way to stabilize the economy. Private transfer fees give Developers a way to make properties more affordable and raise needed funding, create and protect jobs, build more homes and pay off or pay down debt.
6. Private transfer fees are a fiscally-responsible way to stimulate housing growth and bring back the American Dream of Home Ownership. With proper disclosure (which we support) every single person benefits and not a single person is disadvantaged in a typical transaction involving a private transfer fee. Instead of apposing private transfer fees, we urge the NAR leadership to instead promote enactment of legislation to insure proper disclosure of all transfer fees both private and public.
7. 95% of the Title Insurance Underwriting market already provides standard procedures for closing on a transaction with a private transfer fee. Accordingly the NAR's original concern about such procedures being difficult is no longer an issue. As stated above, we encourage NAR to support legislation that would require formal disclosure of all private transfer fees. With full disclosure, everyone benefits.
8. Our current banking structure is at risk with hundreds of bank failures each year. Private transfer fees offer one of the few options available for banks to protect and recover core capital without taking on more debt.
Private transfer fees are a Win-Win in this challenging economy. We encourage the NAR Board of Directors to reverse its decision apposing this much needed economic stimulus.
PS: ALL REALTORS PLEASE PUT YOUR NRDS# & STATE WHERE YOU ARE LICENSED IN THE COMMENT FIELD. General comments you wish to share with others should be made on the petition blog by selecting the blog tab at the top of this page.