03/12/2026
Homeowner Alert: Some private transfer fees currently being assessed in certain Utah county subdivisions can follow the land for up to 99 years.
There is a type of fee that occasionally appears in subdivision documents called a Private Transfer Fee, sometimes administered through organizations such as Covenant Clearinghouse.
These fees were often created by developers to distribute the cost of infrastructure improvements across the life of the community. In many cases, the covenant requires that 1% of the sale price be paid each time the property transfers, and the obligation runs with the land for up to 99 years.
This is SEPARATE from any reinvestment or transfer fees assessed through an HOA.
Yes — when properly recorded in the property’s covenants, this fee is enforceable and must be paid at closing.
What many homeowners don’t realize is that these types of obligations are usually disclosed in two important places:
• The CC&Rs (Covenants, Conditions, and Restrictions) for the subdivision
• The Preliminary Title Report issued during the escrow process
Unfortunately, some homeowners are unaware these fees exist until they are preparing to sell their property.
This is why it is so important to read and understand your CC&Rs and carefully review your Preliminary Title Report. These documents outline the rights, restrictions, and financial obligations tied to your property ownership.
If something in your title report is unclear, ask your escrow officer to walk through it with you so you fully understand how it impacts your property.
I am currently working with a client whose Eagle Mountain property has this assessment attached, and the fee is close to $20,000. Crazy!
Your Title Gal is always here to help protect your property rights and keep you informed. 🏡📑
