Private transfer fees are fees that are tacked on, for example, by a builder doing a new development to cover various fees that the developer may have incurred to meet, for example, an environmental requirement or some other unusual fee that was required during the construction period. It is paid by the buyer, and attached to the deed of the home, typically for a period of 20 years or so. The PTT can go on for perpetuity, depending on the type of fee that it is.
It is not an optional payment once the first home is sold, and this PTT is attached to the deed. This is typical of newer home developments… not so common with older homes.
This fee can also cover lawsuits, or requirements to keep a certain amount of land open and undeveloped in a community.