Most people haver heard of a transfer tax. This "Private Transfer Tax" is something far worse. Basically, it allows developers of homes to add something to the deed of the home they sell. This addition to the deed states that every time the home is sold, the PRIVATE developer will get some percentage of the purchase price. Thats right, the company that built that new home gets a piece of the action whenever that homes is sold - EVERY TIME IT SELLS! That means that 40 years down the road, whoever buys that house will have to pay this private tax to whoever built it.
Does this make sense to you? It shouldn't! Check out this weeks podcast where we talk about this strange beast and about the law presented in California to stop it.
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