SB178 Summary

• Prohibits creation of private transfer fee obligations on real property transfers on or after the bill's effective date; any such obligations are void and unenforceable.

• Defines private transfer fees as charges due upon property transfer, excluding real estate commissions, loan-related fees, governmental taxes, homeowners association dues, and similar legitimate costs.

• Requires payees of private transfer fee obligations imposed before the effective date to record a "Notice of Private Transfer Fee Obligation" by December 31, 2011, containing specific details including fee amount, purpose, contact information, and property legal description.

• Imposes liability on persons who record or enter into new private transfer fee obligations after the effective date, including damages for any fees paid and all attorney fees and costs incurred in recovery actions.

• Allows property owners to transfer property free of unrecorded or non-compliant pre-existing obligations by recording an affidavit, rendering the obligation void.