The main purpose of the transfer fee program is to create financing to get the real estate and building industries back on their feet again by generating jobs to revitalize the economy.  A secondary benefit is to help spread out the costs of the infrastructure facilities over 99 years instead of charging the costs to the first homebuyer. In California there is a Mello Roos tax which is added to the annual property taxes, payable each year equal at approximately 1% of the original cost of the property plus your normal property taxes. A transfer tax paid ten times over 99 years would be considered a huge bargain. A transfer fee is a way to create financing in a destroyed real estate market. A financial source, such as Wall Street or the U.S. government, lends a builder funds to re-start their existing projects. They fund these projects because they will earn back their invested dollars from the transfer fees. The transfer fees do not go into the builder’s pocket – they pay back the investor, (Wall Street – The U.S. government). In most regulated states there are no surprises about hidden transfer fees when you purchase or sell a home. It is a recorded document that all parties sign-off on at point of sale – with full disclosure by all parties. The purpose and fiduciary duty of a title company is to insure that all parties are fully aware of these fees. There are no surprises.