Consider the following scenario: you are in the process of selling your home. You've found a buyer who is willing to pay you $200,000. Your realtor has assured you that everything is going smoothly-- she says that the buyer has lined up financing and there were no problems with the home inspection and the appraisal.
Then, days before the closing, your realtor gives you a call. "Uh, something has turned up during the title search that is going to be a problem," she says. "I don't know if you were aware, but your property has a private transfer fee covenant on it."
"What does that mean?" you say.
"It means you will have to pay an extra $2,000 fee at the closing," your realtor informs you. "And the buyer is demanding that you reduce the sale price by $10,000 or the deal is off because of this."
Pay $2,000? to who? And the buyer wants a ten grand discount?? What the heck is a private transfer fee covenant?
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