Bill No.: HB0025 Drafter: LGC
LSO No.: 12LSO-0183 Effective Date: July 1, 2012
Enrolled Act No.: HEA0043
Chapter No.: CH0088
Prime Sponsor: Representative Stubson
Catch Title: Private transfer fee obligations.
Subject: Limitations on private transfer fee obligations.
Summary/Major Elements:
· Private transfer fee obligations are obligations arising under a declaration or covenant affecting real property that requires the payment of a fee upon the subsequent transfer of the property. The act defines various fees which are not private transfer fee obligations, notably including consideration payable upon a subsequent transfer of property based on any subsequent appreciation, development or sale of a separate mineral estate.
· This act requires the payee of a private transfer fee created prior to April 1, 2012, to record a notice in the county clerk’s office where the property is located. The act provides that a court will not have jurisdiction to enforce any private transfer fee obligation entered prior to April 1, 2012, which is not recorded as required.
· This recording requirement also applies to any fee, charge, assessment, fine or other amount payable to a homeowners’, condominium, cooperative, mobile home or property owners’ association or to a nonprofit land trust pursuant to a declaration or covenant or law applicable to the association or nonprofit land trust. However, the prohibition on jurisdiction to enforce this type of fee would not apply.
· This act prohibits private transfer fee obligations entered into after April 1, 2012, and before July 1, 2014.
Comments:
· Contains delayed effective/repeal date: Private transfer fee obligations will no longer be prohibited after July 1, 2014.