ID S1086

Adds Chapter 31 to Title 55 of Idaho Code to prohibit transfer fee covenants, declaring state public policy favors free transferability of real property without unreasonable restraints on alienation.

Defines "transfer fee covenant" as any provision in a document that requires a property transferee or transferor to pay a fee to a third person upon transfer, regardless of whether the fee is a fixed amount or percentage-based.

Makes transfer fee covenants recorded after the effective date of this section unenforceable and not binding on affected property or subsequent owners, purchasers, or mortgagees.

Exempts from the prohibition: loan assumption fees, broker commissions, typical closing costs, mortgage-related provisions, and association fees used exclusively for authorized purposes without third-party pass-through requirements.

Imposes liability on persons who record transfer fee covenants or file liens to secure such fees, requiring payment of all damages including transfer fees paid, plus attorney's fees, expenses and costs.