MS HB886

Prohibits deed restrictions or covenants that require transferees of residential real property to pay fees to a declarant or third party in connection with future transfers of the property.

Declares any such deed restriction, covenant, or lien attempting to enforce these restrictions void and unenforceable.

Exempts fees payable to property owners' associations managing subdivisions with more than one platted lot, Internal Revenue Code Section 501(c)(3) entities, or governmental entities.

Defines "property owners' association" as an incorporated or unincorporated association representing property owners in a residential subdivision and managing it for their benefit.

Effective July 1, 2010.