North Dakota Becomes 27th State to Restrict Dangerous Wall Street Home Resale Fees
Broad, Bipartisan Coalition Thanks Governor Dalrymple, Senator Grindberg and the Legislature for Standing Up for Homeowners by Banning Fees
BISMARCK, North Dakota – Governor Dalrymple took swift action to protect North Dakota homeowners by signing SB 2149 to restrict Wall Street Home Resale Fees (also known as “private transfer fees”). The new law, sponsored by Senator Grindberg (R-Fargo), places a ban on these fees, a dangerous new financial scheme that steals home equity, lowers home resale values and adds another layer of difficulty to selling a home.
“These fees infringe on property rights and hurt North Dakota consumers,” said Senator Grindberg, who sponsored the legislation. “They have no place in the North Dakota real estate market. We’ve made sure that when a homeowner buys a new property, he or she owns that home free and clear.”
“The Governor and Legislature stood up for homeowners by protecting consumers from these predatory fees,” said Paula Bachmeier, Vice President North Dakota Land Title Association. “This bill is an important step in enhancing consumer protections, safeguarding the real estate market and protecting our property rights systemin North Dakota.”
Manhattan-based Freehold Capitol Partners is leading the push to add these fees to home purchase contracts. The fees require that a percentage of the final sale price of a home be paid to a private third party every time the property is sold, typically for 99 years. Freehold is attempting to then sell the right to collect these fees on Wall Street—all the while padding investors’ pockets while stealing equity from homeowners.
North Dakota becomes the 27th state to have restricted the use of Wall Street Resale Fees.
The bill is the latest in a series of government actions to limit Wall Street Home Resale Fees. North Dakota joins Arizona, Arkansas, California, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Carolina, Ohio, Oregon, South Dakota, Texas, Utah, Virginia and Washington in restricting the dangerous fees. On the federal level, the Federal Housing Finance Agency has issued a proposed rule that would prevent government-sponsored entities from investing in mortgages with these fees.