Would prohibit transfer fees as a matter of public policy.
Current Status: Chaptered
FindHOALaw Quick Summary:
Existing law defines a “transfer fee” as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property.
This bill would add Civil Code Section 1098.6 to prohibit the creation of a transfer fee on or after January 1, 2019, except for deed based transfer fees as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.
**UPDATE: AB 3041 was signed by the Governor on September 7, 2018. Its changes to the law take effect January 1, 2019.
Share:
from the California Legislature's website
Related Topics
Related Statutes
- Civil Code Section 1098.6. Transfer Fees Prohibited.
- Civil Code Section 1098. Deed-based Transfer Fees.
- AB 1139 (Reyes). Real property: transfer fees: notices.
- AB 807 (Stone). Real Estate Transfer Fees: Recorded Documents.
- AB 2430. Transfer Disclosures & Escrow Documents.
- Civil Code Section 4580. Exemption from Transfer Fee Restrictions.
- Civil Code Section 4575. Transfer Fees.
Related Case Law
- Berryman v. Merit Property Management, Inc.
(2007) 152 Cal.App.4th 1544
[Association Records; Transfer Document Fees] An association’s managing agent is permitted to earn a profit on the fees it charges for providing property transfer documents.
Related Links
AB 1139 Imposes New Notice Requirements on Deed-Based Transfer Fees - Published on HOA Lawyer Blog (August 2, 2017)