Without getting into a debate about the validity, enforceability, or merits of private transfer fees, I'd simply comment on how important it is for title and settlement agents and attorneys to carefully read the documents discovered in a full title search or reported in a title report updating reliable back title information. Only an attorney can advise a prospective purchaser about the effect of private transfer fees covenants (or anything else disclosed by the title work, for that matter) but all settlement agents and attorneys can at least inform their customers and clients about the existence of such covenants in the chain of title--but only if they've been discovered. And putting the risk off onto an owner's title insurance policy really misses the point--our clients and customers rightfully expect us to assist them in obtaining title without such problems.

Ron Wiley, Jr., Of Counsel, MartinWren, P.C., Charlottesville, Va.