HF3786 Summary

• Prohibits private transfer fee obligations recorded, filed, or entered into on or after the effective date from running with the title to real property or binding subsequent owners, purchasers, or mortgagees; any such obligations are void and unenforceable.

• Establishes definitions for key terms including "transfer" (sale, grant, gift, conveyance, assignment, inheritance, or other transfer of ownership interest), "private transfer fee" (fees required by private obligation upon transfer of real property interest), and "private transfer fee obligation" (declarations, covenants, or agreements requiring such payments).

• Exempts from private transfer fee restrictions: consideration paid to grantors, real estate broker commissions, mortgage-related charges, rent or lease payments, option/right of first refusal compensation, contract for deed payments, governmental charges, homeowner association fees, club membership transfers, and mortgages from purchasers to sellers.

• Requires receivers of fees from private transfer fee obligations imposed prior to the effective date to record or file a notice by December 31, 2010, containing the fee amount, calculation basis, expiration date, purpose, payee information, payee signature, and legal property description.

• Makes persons who record or file private transfer fee obligations after the effective date liable for all damages resulting from the obligation's imposition, including transfer fees paid and attorney fees incurred to recover or quiet title.