New Idea: Free Hold Licensing

Howdy All:

Here is a new idea a friend asked me to investigate. I would like input from members.


Ted Jr

Interesting. My first question would be how many title companies will be open to do this type of deal?

My question would be if this type of transaction did occur would only one person be elligiable (sp) to collect the fee or could each owner do the same thing creating multiple transfer fees? My understanding of mineral rights are than only one person can collect them.

I wonder if they have a referral fee if you send developers or other investors to them?

I have a closing on Monday and I will try and remember to ask the title company on what their thoughts are.

Very interesting and possiably profitable?

Thanks for pointing it out Ted!


This does not seem to be an ethical thing to do to me. I would not do it.

Why should a former owner collect 3% every time it sells? After a few times, the sale price would be raised so much it would be out-priced and could not sell.

Run this by a real estate attorney before proceeding. You may be jumping into a legal quagmire that may take more $ to get out of than you will ever make.

It just seems like a scam both to you and any future buyers.


An interesting concept. Like mineral rights, you could offer part of the freehold covenant as an incentive. For rehabbers and flippers it could be a gold mine of residual, passive income. I like it and the potential.

My thoughts are to see what an attourney has to say because you know it’s only a matter of time before that will be another one of a banks standard fees! I disagree that it is unethical.