SB 1399: Transfer of real property: transfer fees.

Existing law generally regulates the transfer of real property, including by prohibiting, on or after January 1, 2019, the creation of a transfer fee, except as provided. Existing law defines transfer fee to mean, subject to certain exceptions, a fee payment requirement imposed within a covenant, restriction, or condition contained in a deed, contract, security instrument, or other document affecting the transfer or sale of, or any interest in, real property that requires a fee be paid as a result of transfer of the real property.

This bill would additionally exempt from that provision private transfer fee covenants if specified requirements are met, including that the covenants are created pursuant to an agreement entered into before June 1, 2009, the covenants are applicable to land that is identified in the agreement, and the agreement was in settlement of litigation or approved by a government agency or body.