Bill Text: MS HB575 | 2011 | Regular Session | Enrolled
Bill Title: Fee for future conveyance of property; prohibit payment of certain.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-03-11 - Approved by Governor [HB575 Detail]
Download: Mississippi-2011-HB575-Enrolled.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Judiciary A
By: Representative Snowden
House Bill 575
(As Sent to Governor)
AN ACT TO AMEND SECTION 89-1-69, MISSISSIPPI CODE OF 1972, TO PROHIBIT THE PAYMENT OF A FEE TO A PERSON IMPOSING CERTAIN COVENANTS ON FUTURE CONVEYANCES OF REAL PROPERTY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 89-1-69, Mississippi Code of 1972, is amended as follows:
89-1-69. (1) In this section, "property owners' association" means an incorporated or unincorporated association that:
(a) Is designated as the representative of the owners of property in a * * * subdivision;
(b) Has a membership primarily consisting of the owners of the property covered by the dedicatory instrument for the * * * subdivision; and
(c) Manages or regulates the * * * subdivision for the benefit of the owners of property in the * * * subdivision.
(2) A deed restriction or other covenant running with the land applicable to the conveyance of * * * real property that requires a transferee of * * * real property or the transferee's heirs, successors, or assigns to pay a declarant or other person imposing the deed restriction or covenant on the property or a third party designated by a transferor of the property a fee in connection with a future transfer of the property is prohibited. A deed restriction or other covenant running with the land that violates this section or a lien purporting to encumber the land to secure a right under a deed restriction or other covenant running with the land that violates this section is void and unenforceable. For purposes of this section, a conveyance of real property includes a conveyance or other transfer of an interest or estate in * * * real property.
(3) This section does not apply to a deed restriction or other covenant running with the land that requires a fee associated with the conveyance of property in a subdivision that is payable to:
(a) A property owners' association that manages or regulates the subdivision or the association's managing agent if the subdivision contains more than one (1) platted lot;
(b) An entity organized under Section 501(c)(3), Internal Revenue Code of 1986; or
(c) A governmental entity.
SECTION 2. This act shall take effect and be in force from and after July 1, 2011.