HB184 Summary

• Prohibits creation of private transfer fee obligations on real property transfers in Alabama effective upon passage, making any such obligations recorded or entered after the effective date void and unenforceable.

• Establishes that private transfer fees violate public policy by impairing marketability and transferability of real property and constituting an unreasonable restraint on alienation.

• Imposes liability on persons who record or enter into private transfer fee obligations after the effective date, including damages resulting from the fee and all attorney fees and court costs.

• Requires disclosure of existing private transfer fee obligations in real estate sales contracts; contracts lacking such disclosure are unenforceable against buyers and buyers are entitled to return of all deposits.

• Mandates payees of private transfer fee obligations created before the effective date record a "Notice of Private Transfer Fee Obligation" by December 31, 2011, with specific required information; failure to comply renders the obligation void and property transferable free and clear of the fee.