I 

111TH CONGRESS 

2D SESSION H. R. 6332 

To enhance disclosure of private transfer fees in real estate transactions. 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Homebuyer Enhanced 

5 Fee Disclosure Act of 2010’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS. 

7 The Congress finds that transfer fee covenants rep8 resent an important economic tool with the potential to 

9 make homeownership more affordable and benefit local 

10 communities by positively restructuring the economics of 


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1 real estate transactions by apportioning certain infrastruc2 ture and overhead costs over time. 

3 SEC. 3. RECORDATION OF TRANSFER FEES. 

4 (a) RECORDATION REQUIREMENT.—A transfer fee 

5 covenant recorded on or after the date of the enactment 

6 of this Act shall be void and unenforceable unless, at the 

7 time the document containing the transfer fee covenant 

8 is submitted for recording, a notice described in subsection 

9 (b) is contemporaneously submitted for recording in the 

10 office of the applicable county recorder. 

11 (b) NOTICE REQUIREMENTS.—Notice required under 

12 subsection (a) shall— 

13 (1) be titled, in boldface type, ‘‘Payment of 

14 Transfer Fee Required’’; 

15 (2) include statements of— 

16 (A) the name or names of the owner or 

17 owners of the affected property; 

18 (B) the legal description of the affected 

19 property; 

20 (C) the dollar amount or, if applicable, the 

21 percentage of sales price constituting the trans22 fer fee required to be paid under the transfer 

23 fee covenant; 

24 (D) the method and manner of payment of 

25 the transfer fee; 


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1 (E) in the case of affected property that is 

2 residential property, actual dollar-cost examples 

3 of the amount of the transfer fee for property 

4 priced at $250,000, $500,000, and $750,000; 

5 and 

6 (F) if applicable, the date on which or cir7 cumstances under which the transfer fee cov8 enant expires. 

9 (c) PRESUMPTION OF VALIDITY.—A transfer fee cov10 enant that imposes a transfer fee of not more than 1 per11 cent of the gross sales price for the affected property, ef12 fective for a term of not more than 99 years, and which 

13 complies with the requirements under subsections (a) and 

14 (b) shall be presumed to be valid. 

15 (d) LIMITATION.—No property shall be subject to 

16 more than one transfer fee covenant. 

17 SEC. 4. DEFINITIONS. 

18 For purposes of this section, the following definitions 

19 shall apply: 

20 (1) AFFECTED PROPERTY.—The term ‘‘affected 

21 property’’ means, with respect to a transfer fee cov22 enant, the real property that is encumbered by the 

23 transfer fee covenant. 

24 (2) APPLICABLE COUNTY RECORDER.—The 

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1 spect to affected property, the recorder of the county 

2 in which the affected property is located. 

3 (3) TRANSFER FEE.—The term ‘‘transfer fee’’ 

4 means a fee, charge or payment imposed by a cov5 enant, restriction, or similar document filed in the 

6 applicable county recorder’s office and required to be 

7 paid in connection with or as a result of a transfer 

8 of title to affected property, but does not include 

9 fees, charges, payments, or other obligations that— 

10 (A) are imposed by a court judgment, 

11 order, or decree; 

12 (B) are imposed by or payable to the Fed13 eral Government or a State or local govern14 ment; 

15 (C) arise out of a mechanic’s lien; 

16 (D) arise from an option to purchase, or 

17 for waiver of the right to purchase, the affected 

18 property; 

19 (E) are payable to a homeowners associa20 tion, condominium association, or similar entity 

21 for the benefit of the owners; and 

22 (F) are imposed by or payable to lenders 

23 or purchasers of loans. 

24 (4) TRANSFER FEE COVENANT.—The term 

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1 tion, or agreement filed with the office of the appli2 cable county recorder that— 

3 (A) affects real property; and 

4 (B) obligates a future buyer or seller of the 

5 affected real property, other than a person who 

6 is a party to the covenant, restriction, or agree7 ment, to pay a transfer fee. 

Æ 


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