AL SB441

Existing transfer fee covenants recorded before May 11, 2010 are void and unenforceable unless a notice of transfer fee is recorded with the applicable probate judge before January 1, 2011.

Transfer fee covenants recorded on or after May 11, 2010 are void and unenforceable unless a notice of transfer fee is submitted for recording simultaneously with the covenant document.

Required notice must be titled "Payment of Transfer Fee Required" in at least 14-point boldface and include the property owner name, legal description, tax identification number, and dollar amount or percentage of sales price for the transfer fee.

For residential property, the notice must include actual dollar cost examples showing transfer fee amounts for properties priced at $250,000, $500,000, and $750,000.

The notice must state the expiration date or circumstances for expiration of the transfer fee covenant, if applicable, and the act becomes effective on the first day of the third month following passage and approval.