Session Law 2010-32: Senate Bill 35 Summary

• Prohibits transfer fee covenants from running with title to real property or binding subsequent owners, purchasers, or mortgagees in North Carolina.

• Defines "transfer fee" as any fee or charge payable upon transfer of real property interest, excluding consideration paid to the grantor, real estate commissions, lender fees, lease payments, options/rights of first refusal fees, taxes, closing costs, HOA assessment statements, and conservation agreement fees.

• Establishes that transfer fee covenants violate state public policy by impairing marketability of title and constituting unreasonable restraints on property alienation, regardless of covenant duration or fee amount.

• Makes persons who record transfer fee covenants, file liens to enforce them, or enter transfer fee agreements liable for all damages including any fees paid and attorney fees and costs incurred by transferees or mortgagees.

• Effective upon enactment for transfer fee covenants, liens, and agreements recorded or entered into after the law's effective date; does not validate any covenants recorded before the effective date.