AR HB1388

Adds Arkansas Code § 18-12-107 to prohibit transfer fee covenants that run with the land or bind subsequent owners of real property in Arkansas.

Defines "transfer fee covenant" as a recorded or unrecorded provision imposing a fee upon transfer of real property, including liens to secure such fees.

Exempts from prohibition: fees in purchase contracts, mortgages, or listing agreements that are one-time only; loan assumption fees; real estate commissions; association fees used exclusively for authorized purposes; and fees to qualified nonprofits for cultural, educational, charitable, recreational, or environmental activities.

Makes transfer fee covenants recorded after the effective date unenforceable and unable to run with the title to the property against the property or subsequent owners or mortgagees.

Does not validate transfer fee covenants recorded before the effective date of this section.