Governor Jerry Brown signed a bill Friday to ban hidden property fees.
The bill was written by Central Coast Assemblyman Jordan Cunningham. AB 3041 restricts the use of hidden property transfer fees.
Private Transfer Fees were put in place by real estate developers. The fees require homebuyers to pay a percentage of the sales price anytime the property is transferred. Cunningham’s office says these fees can increase the home by up to $10,000. In some cases, that could disqualify buyers from obtaining certain mortgage loans.
"Housing prices are making homeownership an unreachable goal for ordinary Californians. Here on the Central Coast, housing is particularly expensive," said Assemblyman Cunningham. "My bill will reduce costs for buyers and helps people qualify for federally-backed loans to purchase a home."
The California Association of Realtors and the California Escrow Association both supported the bill.