Somersett Private Transfer Fee Obligation (PTFO) Explained

FHFA defines a Private Transfer Fee as any fee or payment required at time of sale of a property by a deed or covenant restriction.

In English: A Private Transfer Fee Obligation is an encumbrance on real property, created by a declaration, covenant, or any contractual agreement that requires the payment of a transfer fee upon the sale of the property.

SELLER REQUIRED TO DISCLOSE:

Question #15 on the Nevada Seller’s Real Property Disclosure addresses this. For all properties in Somersett, the seller is required to answer yes to this question: “This property is subject to a Private Transfer Fee Obligation.” In the additional remarks, they may add the amounts if they choose.

Per Nevada law, the seller is required to disclose a PTF.

NRS 113.085 Required disclosures by seller of real property subject to private transfer fee obligations.
1. A seller of real property that is subject to a private transfer fee obligation shall furnish to the buyer a written statement which discloses the existence of the private transfer fee obligation, includes a description of the private transfer fee obligation and sets forth a notice in substantially the following form:

A private transfer fee obligation has been created with respect to this property. The private transfer fee obligation may lower the value of this property. The laws of this State prohibit the enforcement of certain private transfer fee obligations that are created or recorded on or after May 20, 2011, (NRS 111.865) and impose certain notice requirements with respect to private transfer fee obligations that were created before May 20, 2011 (NRS 111.870).

2. As used in this section, “private transfer fee obligation” has the meaning ascribed to it in NRS 111.845.
(Added to NRS by 2011, 321)

SOMERSETT FEES EXPLAINED:

Somersett does have a PTFO in place which is $150 as of the date of this publication. Upon closing, the $150 PTFO is paid to the developer every time the house sells. If the buyer doesn’t agree to pay it, the seller is obligated to pay.

In addition, there is a Capital Contribution Fee of $400 which must be paid every time the house sells. It is 1/10th% of gross selling price of the home and these funds are put into a community account as protection for the community.

TO VERIFY FEES OR IF YOU HAVE QUESTIONS:

Contact the Somersett Home Owner’s Association directly.

P: 775-787-4500
E: soa@mysomersett.com

DISCLAIMER: Please be sure to verify the amounts and do not rely upon this publication. As of the date of this publication,
the fees were accurate and verified. We cannot guarantee them beyond that date. Date of Publication: July 19, 2012

2012-08-02T09:42:41+00:00 By |
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