Overview
In the 2024 Utah Legislative Session, lawmakers passed updates for private transfer fee laws, which imposed additional requirements for notice filings and future filings for organizations such as clearinghouses, developers or homeowners to preserve a private transfer fee.
A private transfer fee covenant is a legal instrument that is recorded against a property requiring that a small percentage of the sales proceeds be paid to a third-party upon the sale of the property. There has been recent litigation regarding the validity of private transfer fees charged by local clearinghouses under both 2010 and 2024 laws and the legality of transfer fees in general.
Parsons’ real estate attorneys employ their deep and relevant experience in private transfer fees to advise landowners and developers on ways to navigate the claims of private transfer fees, including exploring title insurance coverage matters and advising on options to remove the encumbrance from title. Parsons’ attorneys also represent landowners in litigation, when needed, to challenge private transfer fees. Whatever your needs to resolve a private transfer fee, Parsons’ multidisciplinary team of attorneys can assist you in finding the solution. To contact our dedicated private transfer fee attorney team, send an email to ptf@parsonsbehle.com.