In the grand scheme of things, 1% doesn’t seem like a lot. But if you plan to sell a home down the road, it can be thousands of dollars — $2,000 on top of the rest of the fees that come with selling a home, including the closing costs that the seller usually pays. But what is this 1% fee? It’s called a “transfer” fee, and it is gaining popularity. While homeowners might use this device, it is mostly the province of developers and home builders right now. KSL in Salt Lake City, Utah, reports on transfer fees:

Transfer fees tacked on to subdivisions, condominiums, even single homes. Buyer beware: You could have these fees tied to your property.

If you do, when you go to sell you will owe someone — either the developer, Builder, or the most recent homeowner - 1 percent of your gross sale price. …

But that’s not all, there’s also a 99-year payout. KSL saw hundreds of documents filed on thousands of acres of property across the Wasatch Front: all span 99 years. That means not only will you owe 1 percent of the gross sale price, but so will the person you sell to and the next, and the next for 99 years. …

“There is going to be somebody really, really mad when they have to pay that,” Ott said.

Mad because many believe buyers who aren’t lucky enough to get the fees removed simply aren’t being told up front about the fees they will eventually have to pay.

Indeed, most of these transfer fees are stuffed into the Covenants, Conditions and Restrictions (CC&Rs) portion of the paperwork you fill out when you buy a home. And most people don’t labor through all of the paperwork. However, it is important that you, or some legal counsel that you trust, take the time to make sure there are no surprises hidden in the CC&Rs. Otherwise, you may find yourself paying an additional fee when you go to sell your home.