Real Estate Central

AUSTIN, Texas, Aug. 26 /PRNewswire/ — Freehold Licensing
(http://www.FreeholdLicensing.com) comments upon the recent passage of California
Assembly Bill 980 (Cal. Civ. Code 1098).

AB 980 relates to private transfer fees (also called “reconveyance
fees”), an increasingly popular way to restructure rising development
costs. In passing AB 980 the California legislature overwhelmingly rejected
a proposed ban on transfer fees, opting instead for separate written notice
to prospective buyers regarding the existence of a transfer fee.

Freehold Licensing Vice President Michael Gagne commented, “By
permitting transfer fees while including important consumer protections,
the California legislature struck a well-reasoned balance between the
benefits this important economic tool can provide and the need for adequate
disclosure.”

During vigorous debate over AB 980 a spokesman for the California
Building Industry Association remarked, “If builders weren’t allowed to
pass along costs in a transfer fee, they’d have to make up for it by adding
thousands of dollars to their homes’ initial selling price, shutting out
buyers.” Julie Snyder, Policy Director for non-profit “Housing California”
stated, “Reconveyance financing helps keep home prices low by spreading
costs over all beneficiaries of a project.”

According to Land Economist Dr. Thomas McPeak, Ph.D., who in 2000 began
teaching at the University of Georgia Terry College of Business with the
theme “Integrity is Profitable”, “transfer fees represent an equitable
alternative to the current practice of forcing one hundred percent of
development costs onto first time buyers. By spreading costs over time
buyers can buy for less, prices can be kept more affordable and costs are
distributed over those who benefit from improvements to property. I admire
the way Freehold leverages private sector efficiencies to create long term
funding for non-profits and both the ethics and the economics of Freehold’s
system are to be commended.”

Freehold Licensing helps developers more efficiently apportion costs
while extracting additional value from their real estate portfolios. In the
process, Freehold helps create long-term funding for non-profits, including
funding for affordable housing, open space, clean air and more. By creating
substantial value for its clients while also helping to build better
communities Freehold Licensing has become one of the fastest growing
privately held companies in the United States.

DISCLAIMER: Although the Company believes all information in this
release is accurate, no reliance shall be made thereupon. The Company
undertakes no obligation to update information contained herein.

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[Via Real Estate Newswire]