What the PTF***?

In one of my previous posts titled "Private Transfer Fees - A Hidden Tax", I described Private Transfer Taxes or Private Transfer Fees, as they are now called. The California Association of REALTORS (C.A.R.) coined these terms, but don't expect that wording when looking to see if you have it. Developers are very creative in disguising the name with terms like Endowment Fee, Trust Fee, Open Space Conservatory Fee, etc. The key is that it's going to be a fee that shows up in the title search and not on your property tax bill. The following is an update to that post:

I have found 2 developments in Ventura County that have imposed this Private Transfer Fee. One in Camarillo at Addison Lane in Village at the Park. The other in Ventura at the Melody Condominiums - where Telephone Rd. and Saratoga Ave. intersect. Both developments were built by Lennar.

If you are a homeowner in either of these developments, you have an added, legally-required disclosure to make to any interested buyer regarding the existence of a Private Transfer Fee. You may not recall or even know that you have this fee attached to your property, but I assure you, a simple title search on your property will reveal not only the existence of the fee, but the method for calculating the fee which must be paid prior to transfering your property.

In the case of these Lennar built homes, the Private Transfer Fee is specifically named an "Endowment Fee" in the title record with the profits from such fees going to the Lennar Charitable Housing Foundation. And the kicker...This fee will be applied to all transfers of these properties - in perpetuity!

If you are a prospective buyer for one of these homes, you'd better beware. You will inherit the obligation to pay the "Endowment Fee" should you decide to move forward and make the purchase. I hope you really love that home 'casue you may have a harder time selling it in today's market!

Lennar's website describes the Lennar Charitable Housing Foundation and specifically states, "Lennar is pleased to have been a founder in this unique program of giving back to our Community, and looks forward to its expansion in other areas of Lennar Community development." No kidding - their seed has definitely been spread around. Lennar has developments throughout Southern California - some as close to Ventura County as Valencia and Santa Clarita. And, its a safe bet that Lennar has at least some of these developments contributing to their foundation.

Need help in determining "What the PTF***?, I'm just a phone call or email away.