MI HB4228

Prohibits transfer fee covenants executed on or after May 24, 2011 from running with the title to residential real property or binding subsequent owners, purchasers, or mortgagees.

Voids any lien purporting to secure payment of a transfer fee under a transfer fee covenant executed on or after the effective date.

Defines "transfer fee" as a fee or charge payable upon sale, gift, conveyance, or other transfer of ownership interest in residential real property, with specific carve-outs for broker commissions, mortgage-related fees, lease payments, and homeowners' association fees.

Allows any aggrieved person to bring an action to clear title and void transfer fees, with courts authorized to award actual reasonable attorney fees and costs in successful actions.

Effective immediately upon the governor's approval on May 24, 2011.