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AB-3041 Real estate transfer fees: prohibition.(2017-2018)

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Date Published: 02/16/2018 09:00 PM


Assembly Bill No. 3041

Introduced by Assembly Member Cunningham

February 16, 2018

An act to add Section 1098.6 to the Civil Code, relating to real estate transfer fees.


AB 3041, as introduced, Cunningham. Real estate transfer fees: prohibition.
Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a “transfer fee” with respect to real property 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, with specified exceptions.
This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, except as otherwise provided. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


 Section 1098.6 is added to the Civil Code, to read:

 (a) (1) On or after January 1, 2019, a transfer fee shall not be created.
(2) This subdivision does not apply to either of the following.
(A) Excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations.
(B) A transfer fee created before January 1, 2019, that requires the payment of a transfer fee on or after January 1, 2019.
(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.
(c) For purposes of this section, “transfer fee” has the same meaning as that term is defined in Section 1098.