Some Home Builders Collect Cash Long After Job is Done

Some builders in other parts of the country are placing a "resale fee" in their sale contracts and some buyers are not picking up on it until after they sign. The fee obligates the buyer to give the builder one-percent of the sales prices every time the property is sold for up to 99 years.

KYW's Michelle Durham reports that David Perlman, president of the Building Industry Association of Philadelphia, says this isn't happening here, yet:

"To the best of our knowledge we do not have those fees on any of the large developers anywhere in the Philadelphia area."

Paul Finley is vice president of Nolen Companies, a King of Prussia, Pa. based builder offered this opinion:

"Sounds like something that buyers are just not paying attention too. It's just not good. Are they also going to share if the house goes down in value? Are they going to kick back in? It just doesn't seem right to me."

Finley's advice?

"Buyer beware. They should read everything and they should understand who they are dealing with. They should knock on doors of homes if the development is under construction. Knock on the door and find out about the builder. That's what we tell people to do."