ID S1123

Establishes Chapter 31 of Title 55, Idaho Code to prohibit transfer fee covenants, declaring that such covenants violate public policy by impairing real estate marketability and constituting unreasonable restraints on alienation.

Defines "transfer fee covenant" as any provision in a recorded or unrecorded document requiring a transferee or transferor to pay a fee to a third person upon real property transfer, with specific exceptions for loan assumptions, real estate commissions, closing costs, and association fees.

Declares transfer fee covenants recorded after the effective date unenforceable against affected real property and subsequent owners, while stating nothing implies validity of covenants recorded before the effective date.

Makes persons who record transfer fee covenants, file related liens, or enter into private transfer fee agreements liable for all damages including amounts paid, plus attorney's fees, expenses, and costs incurred by affected parties or mortgagees.

Declares an emergency, making the act effective immediately upon passage and approval.