Frequently Asked Questions

What types of properties are eligible?

Virtually any real property, including (but not limited to) residential, commercial, industrial, warehouse, retail, office, etc.

How does this appear on a title commitment?

In the same manner as other common encumbrances such as deed restrictions.

How are funds administered?

At each closing, the closing agent collects and remits the fee to a central Trustee.

How many properties have sold with a Reconveyance Fee in place?

Freehold estimates that over 100,000 properties have sold with a Reconveyance Fee in place.

What is the size of Freehold's portfolio?

We have partnered with the owners of an estimated three hundred billion dollars in real estate projects, including retail, hotel, residential, commercial, high rises office buildings, condominiums and more, owned by some of the largest real property owners in the United States. (As of July 2009)

Do future buyers benefit?

Yes. Property encumbered by a 1% fee should sell for less than property with no fee. A buyer paying less today will have lower acquisition costs, lower carrying costs over time, and the ability to sell for less. The savings are modest, but the Reconveyance Fee is equally modest.

Is this a patented process?

Freehold has multiple patent filings pending in relation to the imposition of reconveyance fees on a "for profit" basis. Reconveyance fees for non-profit use, including use by homeowner associations, co-op associations, environmental initiatives, etc., are excluded from Freehold's claims.

What do Realtors think?

Freehold works closely with Realtors.

Can future owner's also impose a Reconveyance Fee on the same property?

No. Our instrument prohibits additional Reconveyance Fees.

Can homeowners work with Freehold?

No. Freehold only works with the owners of very large real estate portfolios in order to help them restructure the economics in an efficient way.