The newest rip off in housing.

[dixiegrrrrl]

Would you be willing to pay the original builder a fee when you resell your home?
That's an obligation some developers are trying to slap on homeowners in their communities.


"But in some new developments, homebuilders are including in contracts a 1% fee to be paid to them every time the house is sold -- for 99 years. !!!! And the money doesn't go for improvements or upkeep: It's just money in the builders' pockets."


snip...............

"The company's plan is to monetize that future income -- essentially allowing developers to get paid now rather than later. To do that, Freehold would bundle together the estimated income from the future fees and sell that package to investors. It claims this new "asset" would be worth about 5% of the original home prices."

so not only will your mortgage be turned into a derivative, so will your "tax" to the builder.
which he will get every time the house is sold.

More, much more:

http://money.cnn.com/2010/08/23/real_estate/home_resale_fee/index.htm?hpt=T2