jeudi 13 juin 2019

Seller Disclosure: How Does House Front Foot Fee Impact Real Estate Transaction

My question involves real estate located in the State of: Maryland, Baltimore County.

How does House Front Foot FEE impact real estate transaction ?
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Thanks for responding to my threads.

I am in the home buying process in Maryland. As I reviewed the draft contract doc, a weird clause caught my eye. It states :

Quote:

The property is subject to fee or assessment charged under authority grated to developer pursuant to section 32-4-310 of the Baltimore County Maryland code. Which purports to cover or defray the cost of installing all or part of the public water or sewer facilities constructed by the developer of the sub division known as .... This fee or assessment is $500 - 900/year. I did not see any dept in state or county as oversight to this Front Foot FEE.
It looks like much more than water consumption bill and throwing $ in drain. I did go after this property, because it did not have HOA. This item is surfacing now. The seller/agent did not provide any addendum related to this. It is bothering me.

I did google it and learned that it was called a Front Foot Fee being assessed to the buyer. Sometimes it is called a Front Foot Assessment (FFA) or Front Foot Benefit.

What is the benefit for the owner, who buy this property and pays $500 - 900/year?

Are there ways to avoid/remove this lien hold on this property?

Does this Front Foot Assessment has impact on sale price/offer of the property?

If there is no Front Foot Assessment for a house, will it sell it for more $?

Quote:

After talking with Seller agent, they disclosed:

$550/year for next 13 years (remaining term). The original term is 33 years , xxx/year. I am not aware about original term, that is why I put xxx/year.

The house is coming to me with mini mortgage ($550/year, for 13 years).

What is the best way/strategy to factor this into offer/sale price?


I did not see the additional info/addendum for this.

I did see the amount/term higher compare to other properties. Is it because of seller's default payment caused to readjust?

Technically , this property coming with 13 year term debt . How do address this in real estate transaction?

What will be the liability of utility infrastructure attached to this property after 13 years (fully paid)?

Who is responsible for maintenance /break fix of attached utility infrastructure now and after 13 years (fully paid)?

What is the document to show this info?

Who is the oversight in state/county for this Front Foot FEE arrangement?

Thanks for your guidance.


Seller Disclosure: How Does House Front Foot Fee Impact Real Estate Transaction

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