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Delaware · 25 Del. C. §319Delaware private transfer fees: covenants recorded since July 27, 2010 do not bind buyers or lenders

Delaware defines a private transfer fee as a fee payable on the transfer of an interest in real property, or for the right to make or accept a transfer, whether a fixed amount or a percentage of the value or price (25 Del. C. §319(a)(1)). The definition excludes the price itself and seller financing, fees to personal representatives, guardians and trustees, broker and auctioneer commissions, bankruptcy trustee fees, amounts owed to a lender under a bona fide mortgage loan, rent and lease charges, payments to release an option or right of first refusal, government charges, and fees payable to a condominium or common interest community association, including resale certificate charges (§319(a)(1)(b)). A transfer fee covenant recorded on or after July 27, 2010, or unrecorded, does not run with the title and is not binding on or enforceable against any owner, later owner, purchaser or mortgagee, and any lien securing such a fee is void (§319(b)). The Attorney General may charge its use as a consumer law violation, and it may be enforced by private action (§319(c)).

What the statute sets

  1. Covered fee (§319(a)(1))

    Any fee payable on a transfer, fixed or a percentage of value or price.

  2. Not covered (§319(a)(1)(b))

    Price, commissions, loan charges, rent, government charges, association and resale certificate fees.

  3. Effect (§319(b))

    Covenants recorded from July 27, 2010, or unrecorded, bind no owner, buyer or lender; liens void.

  4. Enforcement (§319(c))

    Consumer law violation charged by the Attorney General, or a private action.

What the TC does when a Delaware title commitment shows a transfer fee

  • Check the recording date of the covenant against July 27, 2010.
  • Separate association charges and resale certificate fees, which the statute excludes, from a private transfer fee.
  • Ask the title company to remove or insure over a covenant the statute makes unenforceable.

Questions about Delaware private transfer fees

Are private transfer fees enforceable in Delaware?

Not under a covenant recorded on or after July 27, 2010, or an unrecorded one: it does not bind owners, purchasers or mortgagees, and a lien securing it is void (25 Del. C. §319(b)).

Do Delaware HOA resale certificate fees count as a private transfer fee?

No. Fees payable to a condominium or common interest community association, including resale certificate charges, are excluded (25 Del. C. §319(a)(1)(b)).

Related guides

Track title objections such as transfer fee covenants as tasks on the deal in ClosingCode.

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Source: 25 Del. C. §319 (delcode.delaware.gov), read October 31, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.