Property OwnershipIntermediateDelaware Exam

What is a 'private transfer fee covenant' (deed covenant) and its legal status in Delaware?

AA deed provision requiring payment of a fee to a private party every time the property is soldCorrect
BA government transfer fee assessed on every property deed recorded
CA deed restriction preventing property transfer without HOA approval
DSimply a private covenant requiring the property to transfer only to one specific named beneficiary upon death

Why A deed provision requiring payment of a fee to a private party every time the property is sold Is Correct

Answer A: A deed provision requiring payment of a fee to a private party every time the property is sold

Private transfer fee covenants require a payment (typically 1% of sale price) to a private third party each time the property transfers. They can last decades and encumber title.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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