How about this for a new and ingenious real estate money machine? Every time a house sells during the next 99 years, 1 percent of the price goes back to the original developer or is shared among investor partners. Ka-ching!

The levy won’t be subject to haggling between future buyers and sellers, either. That’s because it’s a covenanted mandate — a novel type of lien on the underlying real estate — called a private transfer fee. It’s not a government transfer tax. Nor is it a homeowner association or environmental protection covenant. It’s purely a private requirement that runs with the land. If a seller refuses to pay it to a third-party trustee at closing, the sale won’t proceed.

“Read the Full Story”