Bill Text: IN HB1541 | 2011 | Regular Session | Enrolled
Bill Title: Transfer fee covenants.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1541 Detail]
Download: Indiana-2011-HB1541-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
AN ACT to amend the Indiana Code concerning property.
Chapter 14. Transfer Fee Covenants
Sec. 1. As used in this section, "transfer" means the transfer of an interest in real property located in Indiana by:
(1) sale;
(2) gift;
(3) conveyance;
(4) assignment;
(5) inheritance; or
(6) other means of transfer.
Sec. 2. (a) As used in this section, "transfer fee" means a fee or charge that:
(1) is required under a transfer fee covenant; and
(2) is payable:
(A) upon the transfer of an interest in real property; or
(B) for the right to make or accept a transfer of an interest in real property;
regardless of whether the fee or charge is in a fixed amount or is determined as a percentage of the value of the property, of the
purchase price of the property, or of any consideration given for
the transfer of the property.
(b) The term does not include any of the following:
(1) Any consideration payable by the transferee to the
transferor for the interest in the real property being
transferred, including any consideration payable for a
separate mineral estate and its appurtenant surface access
rights.
(2) Any commission to a real estate broker or salesperson
licensed under IC 25-34.1 payable:
(A) in connection with the transfer of an interest in real
property; and
(B) under an agreement between the real estate broker or
salesperson and the transferor or transferee.
(3) Any interest, charges, fees, or other amounts payable by a
borrower to a lender under a loan secured by a mortgage
against an interest in real property, including the following:
(A) Any fee payable to the lender for consenting to an
assumption of the loan or to a transfer of the property
interest subject to the mortgage.
(B) Any fees or charges payable to the lender for estoppel
letters or certificates.
(C) Any other consideration allowed by law and payable to
the lender in connection with the loan.
(4) Any rent, reimbursement, charge, fee, or other amount
payable by a lessee to a lessor under a lease, including any fee
payable to the lessor for consenting to an assignment,
subletting, encumbrance, or transfer of the lease.
(5) Any consideration payable to the holder of:
(A) an option to purchase an interest in real property; or
(B) a right of first refusal or first offer to purchase an
interest in real property;
for waiving, releasing, or not exercising the option or right
upon the transfer of the property interest to another person.
(6) Any tax, fee, charge, assessment, fine, or other amount
payable to or imposed by a governmental entity.
(7) Any fee, charge, assessment, fine, or other amount payable
to:
(A) a homeowners association;
(B) a condominium association;
(C) a cooperative association;
(D) a mobile home association;
(E) another property owners association; or
(F) an agent representing an association described in clauses (A) through (E);
under a covenant, law, or contract applicable to the association.
Sec. 3. As used in this chapter, "transfer fee covenant" means a declaration or covenant, however denominated and regardless of whether it is recorded, that:
(1) purports to affect an interest in real property located in Indiana; and
(2) requires or purports to require the payment of a transfer fee to:
(A) the declarant;
(B) another person specified in the declaration or covenant; or
(C) the successors or assigns of a person described in clause (A) or (B);
upon a subsequent transfer of the interest in real property.
Sec. 4. (a) A transfer fee covenant recorded in Indiana after June 30, 2011:
(1) does not run with the title of the interest in real property the transfer fee covenant purports to affect; and
(2) is not binding or enforceable at law or in equity, as an equitable servitude or otherwise, against any subsequent owner, purchaser, or mortgagee of the interest in the real property the transfer fee covenant purports to affect.
(b) Any lien purporting to secure the payment of a transfer fee payable under a transfer fee covenant recorded in Indiana after June 30, 2011, is void and unenforceable.
(c) A:
(1) transfer fee covenant; or
(2) lien purporting to secure the payment of a transfer fee payable under a transfer fee covenant;
recorded in Indiana before July 1, 2011, is not presumed to be valid and enforceable.
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