Resale Fees ?
Recently, The New York Times published an article entitled Resale Fees That Only Developers Could Love . The article does a nice job describing what resale fees are and how they are created and even the securitization of future resale fees so we will not go into it here. Briefly, resale fees run with the land as covenants binding all subsequent owners to their conditions. The typical place you would find them, if created for a project, would be in the project declarations of covenants, conditions and restrictions. Since this is a somewhat novel concept just starting to receive the attention of law makers and regulatory agencies, if you are a developer considering resale fees, make sure that your state does not prohibit them and that your buyers have full disclosure of the issue to avoid any possible future problems. Also, lenders might consider the existence of resale fees and receiving an assignment of the same as collateral for a project's financing. Creative and novel so caveat emptor !
