SB 2373 - Prohibition of Transfer Fees

• Prohibits deed restrictions or covenants that require property transferees to pay fees to a declarant, other person imposing the restriction, or a designated third party in connection with future property transfers.

• Declares such deed restrictions, covenants running with the land, and liens securing prohibited transfer fees void and unenforceable.

• Exempts from the prohibition: lender fees, condominium/cooperative/planned community association fees, lessor fees, payments for waiving options or rights of first refusal, developer/affordable housing payments, government fees, and fees from court-approved litigation settlements.

• Voids any deed restrictions or covenants filed/recorded on or after the effective date that impose prohibited transfer fees; does not imply validity of restrictions filed before the effective date.

• Prevents recovery of transfer fees paid prior to the effective date of the Act.

• Effective date: July 1, 2050.