SB417 Summary

• Prohibits the recording of transfer fee covenants against real property in Alabama and declares them unenforceable against subsequent owners, purchasers, or mortgagees as of the bill's effective date.

• Establishes that transfer fee covenants violate Alabama public policy by impairing the marketability and transferability of real property and constituting an unreasonable restraint on alienation.

• Defines transfer fee as any charge required upon transfer of real property interest, but explicitly excludes consideration between parties to the same conveyance, real estate broker commissions, mortgage-related fees, lease payments, and governmental taxes.

• Voids any liens attempting to secure payment of transfer fees under covenants recorded after the effective date, though the bill does not presume transfer fee covenants recorded before the effective date are valid or enforceable.

• Exempts environmental covenants and remediation-related restrictions from the definition of transfer fee covenants.