Ohio outlaws developer transfer fees

COLUMBUS (AP) — Ohio has barred property developers from collecting a transfer fee whenever a home in one of their developments changes hands.

In a relatively new real estate practice, a provision written into developments’ deed papers requires 1 percent of a home’s sale price to be paid to the developer no matter how many times the property is sold, for up to 99 years.

Gov. Ted Strickland on Monday signed a bill outlawing the practice in Ohio, though developers had not yet sought the fees here.

Developer Ted Thieman of the Dayton area says Ohio and 11 other states with restrictions may now find it more difficult to get financing for developments.

Real estate agents, lawyers and title agents oppose the 99-year covenants, saying they make sales more complicated.