A private transaction or transfer fee is a charge that real property buyers are contractually required to pay to a private party, such as to the property’s developer or to a homeowner’s association. Developers sometimes attach these private transfer fees – different from public transfer taxes imposed by state or local governments – to new homes in order to pay for infrastructure or homeowner association costs, or to create a long-term revenue stream for the developer or original land owner. The fees are usually calculated as a percentage of the sales price and recorded in the property’s deed or covenant. Depending on the terms recorded, the fee may apply only the first time the property is sold or subsequent resale as well. This type of fee is relatively new and untested as a source of revenue for public agencies and would probably only be applicable where the public agency owns land (i.e., as part of a joint development deal).