Bill Text: GA HB739 | 2011-2012 | Regular Session | Introduced

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Bill Title: Property; prohibit fee for conveyance of real property except under limited circumstances

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2012-01-23 - House Second Readers [HB739 Detail]

Download: Georgia-2011-HB739-Introduced.html

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12 LC 29 4990ER

House Bill 739

By: Representatives McKillip of the 115th, Jacobs of the 80th, Allison of the 8th, and Lindsey of the 54th

A BILL TO BE ENTITLED
AN ACT

To amend Article 1 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating generally to mortgages, conveyances to secure debt, and liens, so as to prohibit a fee for a future conveyance of real property except under limited circumstances; to provide for a definition; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 1 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating generally to mortgages, conveyances to secure debt, and liens, is amended by adding a new Code section to read as follows:

"44-14-14.

(a) As used in this Code section, the term 'conveyance of real property' shall include a conveyance or other transfer of an interest or estate in real property.

(b) A restriction or covenant running with the land applicable to the conveyance of real property that requires a transferee or transferor of real property or the transferee's or transferor's heirs, successors, or assigns to pay a declarant or other person imposing the restriction or covenant on the property or a third party designated by such declarant or other person, or a successor, assignee, or designee of any thereof, a fee in connection with a future transfer of the property shall be prohibited. A restriction or covenant running with the land that violates this Code section or a lien purporting to encumber the land to secure a right under a restriction or covenant running with the land that violates this Code section shall be void and unenforceable.

(c) This Code section shall not apply to a restriction or covenant that requires a fee associated with the conveyance of real property to be paid to:

(1) An association formed for the purposes of exercising the powers of the association of any condominium created pursuant to Article 3 of Chapter 3 of this title, the 'Georgia Condominium Act';

(2) A property owners' association formed for the purposes of exercising the powers of the property owners' association pursuant to Article 6 of Chapter 3 of this title, the 'Georgia Property Owners' Association Act';

(3) A property owners' association formed for the purposes of exercising the powers of an association of property owners that has not been formed pursuant to or which has not adopted the provisions of Article 6 of Chapter 3 of this title, the 'Georgia Property Owners' Association Act,' provided that such association shall comply with subsection (d) of Code Section 44-3-232; or

(4) A person or entity under the general supervision of the Public Service Commission as provided for in subsection (a) of Code Section 46-2-20, provided that the fee is charged for expenses incurred in the administration of ongoing services or rights provided to the property interest conveyed.

(d) A conveyance of real property by gift, devise, nonjudicial or judicial foreclosure, deed in lieu of foreclosure, court order, or operation of law shall be exempt from any permissible fees under this Code section."

SECTION 2.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.