HI HB1383

Prohibits transfer fee covenants recorded in Hawaii on or after July 1, 2009, from running with title to real property or binding subsequent owners, purchasers, or mortgagees.

Voids and makes unenforceable any liens purporting to secure payment of transfer fees under covenants recorded on or after July 1, 2009.

Defines "transfer fee" to exclude consideration paid to the grantor, real estate broker commissions, mortgage-related fees, lease payments, options/right of first refusal payments, government taxes/fees, homeowners association fees, club membership fees, and environmental covenant payments.

Establishes that transfer fee covenants impair marketability of real property and constitute unreasonable restraints on alienation, contrary to public policy.

Declares the Act takes effect upon approval.