SB 1174
Provides that covenants for transfer fees on real estate shall be unenforceable against subsequent owners
LR Number:
Last Action:
2/27/2008 - Second Read and Referred S Judiciary and Civil & Criminal Jurisprudence Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2008

Current Bill Summary

SB 1174 - This act provides that no covenant for a fee or charge to be paid upon the transfer of an interest in real property shall be enforceable against any subsequent owner, purchaser, or mortgagee of any interest in real property.

A transfer fee shall not include:

(1) Any consideration payable for the interest in real property being transferred;

(2) Any commission payable to a real estate broker under an agreement between the broker and the grantor or grantee;

(3) Any amount payable by a borrower to a lender pursuant to a loan secured by a mortgage against real property, including any fee payable to the lender for consenting to an assumption of the loan or a transfer of the real property subject to the mortgage any fees payable to the lender for estoppel letters or certificates, or any other consideration allowed by law payable to the lender in connection with the loan;

(4) Any amount payable by a lessee to a lessor under a lease;

(5) Any consideration payable to the holder of an option to purchase an interest in real property;

(6) Any amount payable to a governmental authority; or

(7) Any amount payable to a property owners' association under a declaration, covenant, or law applicable to such association.