I 111th CONGRESS 2d Session H. R. 6332 IN THE HOUSE OF REPRESENTATIVES September 29, 2010 Mr. Gingrey of Georgia introduced the following bill; which was referred to the Committee on Financial Services A BILL To enhance disclosure of private transfer fees in real estate transactions.

1.

Short title

This Act may be cited as the Homebuyer Enhanced Fee Disclosure Act of 2010.

2.

Congressional findings

The Congress finds that transfer fee covenants represent an important economic tool with the potential to make homeownership more affordable and benefit local communities by positively restructuring the economics of real estate transactions by apportioning certain infrastructure and overhead costs over time.

3.

Recordation of transfer fees

(a)

Recordation requirement

A transfer fee covenant recorded on or after the date of the enactment of this Act shall be void and unenforceable unless, at the time the document containing the transfer fee covenant is submitted for recording, a notice described in subsection (b) is contemporaneously submitted for recording in the office of the applicable county recorder. (b)

Notice requirements

Notice required under subsection (a) shall— (1)be titled, in boldface type, Payment of Transfer Fee Required; (2)include statements of— (A)the name or names of the owner or owners of the affected property; (B)the legal description of the affected property; (C)the dollar amount or, if applicable, the percentage of sales price constituting the transfer fee required to be paid under the transfer fee covenant; (D)the method and manner of payment of the transfer fee; (E)in the case of affected property that is residential property, actual dollar-cost examples of the amount of the transfer fee for property priced at $250,000, $500,000, and $750,000; and (F)if applicable, the date on which or circumstances under which the transfer fee covenant expires. (c)

Presumption of validity

A transfer fee covenant that imposes a transfer fee of not more than 1 percent of the gross sales price for the affected property, effective for a term of not more than 99 years, and which complies with the requirements under subsections (a) and (b) shall be presumed to be valid. (d)

Limitation

No property shall be subject to more than one transfer fee covenant.

4.

Definitions

For purposes of this section, the following definitions shall apply: (1)

Affected property

The term affected property means, with respect to a transfer fee covenant, the real property that is encumbered by the transfer fee covenant. (2)

Applicable county recorder

The term applicable county recorder means, with respect to affected property, the recorder of the county in which the affected property is located. (3)

Transfer fee

The term transfer fee means a fee, charge or payment imposed by a covenant, restriction, or similar document filed in the applicable county recorder’s office and required to be paid in connection with or as a result of a transfer of title to affected property, but does not include fees, charges, payments, or other obligations that— (A)are imposed by a court judgment, order, or decree; (B)are imposed by or payable to the Federal Government or a State or local government; (C)arise out of a mechanic’s lien; (D)arise from an option to purchase, or for waiver of the right to purchase, the affected property; (E)are payable to a homeowners association, condominium association, or similar entity for the benefit of the owners; and (F)are imposed by or payable to lenders or purchasers of loans. (4)

Transfer fee covenant

The term transfer fee covenant means a covenant, restriction, or agreement filed with the office of the applicable county recorder that— (A)affects real property; and (B)obligates a future buyer or seller of the affected real property, other than a person who is a party to the covenant, restriction, or agreement, to pay a transfer fee.