TITLE 55

PROPERTY IN GENERAL

CHAPTER 31

PROHIBITION OF TRANSFER FEE COVENANTS

55-3103.  real estate transfer fees unlawful. (1) A transfer fee covenant recorded after the effective date of this section, or any lien to the extent that it purports to secure the payment of a transfer fee, is not binding upon or enforceable against the affected real property or any subsequent owner, purchaser or mortgagee of any interest in the property.

(2)  Nothing in this section shall imply that a transfer fee covenant recorded prior to the effective date of this section is valid or enforceable.

(3)  A person who records a transfer fee covenant, files a lien that purports to secure payment of a transfer fee or enters into an agreement imposing a private transfer fee obligation shall be liable for:

(a)  Any and all damages resulting from the imposition of the transfer fee obligation on the transfer of an interest in the real property, including the amount of any transfer fee paid by a party to the transfer.

(b)  All attorney’s fees, expenses and costs incurred by a party to the transfer or mortgagee of the real property to recover the transfer fee paid or in connection with an action to quiet title.

History:

[55-3103, added 2011, ch. 107, sec. 1, p. 275.]