California 2017-2018 Regular Session

California Assembly Bill AB3041 Compare Versions

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1		-	Assembly Bill No. ~~3041 CHAPTER 306~~ An act to add Section 1098.6 to the Civil Code, relating to real estate transfer fees. ~~[ Approved by Governor September 07, 2018. Filed with Secretary of State September 07, 2018. ]~~ LEGISLATIVE COUNSEL'S DIGESTAB 3041, Cunningham. Real estate transfer fees: prohibition.Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a transfer fee with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property, with specified exceptions.This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, other than excepted transfer fee covenants, as defined. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.Existing law, when a transfer fee is imposed upon real property on or after January 1, 2008, requires the person or entity imposing the transfer fee, as a condition of payment of the fee, to record a separate document meeting specified requirements. Existing law requires that document to contain, among other things, for private transfer fees created on or after February 8, 2011, absent a specified exception, a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by private transfer fee covenants that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property that person may have difficulty obtaining financing.This bill would provide that excepted transfer fee covenants are not required to comply with the notice described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1098.6 is added to the Civil Code, to read:1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
	1	+	Enrolled August 15, 2018 Passed IN Senate August 13, 2018 Passed IN Assembly May 03, 2018 Amended IN Assembly April 24, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 3041Introduced by Assembly Member CunninghamFebruary 16, 2018 An act to add Section 1098.6 to the Civil Code, relating to real estate transfer fees. LEGISLATIVE COUNSEL'S DIGESTAB 3041, Cunningham. Real estate transfer fees: prohibition.Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a transfer fee with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property, with specified exceptions.This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, other than excepted transfer fee covenants, as defined. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.Existing law, when a transfer fee is imposed upon real property on or after January 1, 2008, requires the person or entity imposing the transfer fee, as a condition of payment of the fee, to record a separate document meeting specified requirements. Existing law requires that document to contain, among other things, for private transfer fees created on or after February 8, 2011, absent a specified exception, a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by private transfer fee covenants that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property that person may have difficulty obtaining financing.This bill would provide that excepted transfer fee covenants are not required to comply with the notice described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1098.6 is added to the Civil Code, to read:1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
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3		-	Assembly Bill No. 3041 CHAPTER 306 An act to add Section 1098.6 to the Civil Code, relating to real estate transfer fees. [ Approved by Governor September 07, 2018. Filed with Secretary of State September 07, 2018. ] LEGISLATIVE COUNSEL'S DIGESTAB 3041, Cunningham. Real estate transfer fees: prohibition.Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a transfer fee with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property, with specified exceptions.This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, other than excepted transfer fee covenants, as defined. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.Existing law, when a transfer fee is imposed upon real property on or after January 1, 2008, requires the person or entity imposing the transfer fee, as a condition of payment of the fee, to record a separate document meeting specified requirements. Existing law requires that document to contain, among other things, for private transfer fees created on or after February 8, 2011, absent a specified exception, a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by private transfer fee covenants that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property that person may have difficulty obtaining financing.This bill would provide that excepted transfer fee covenants are not required to comply with the notice described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
	3	+	Enrolled August 15, 2018 Passed IN Senate August 13, 2018 Passed IN Assembly May 03, 2018 Amended IN Assembly April 24, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 3041Introduced by Assembly Member CunninghamFebruary 16, 2018 An act to add Section 1098.6 to the Civil Code, relating to real estate transfer fees. LEGISLATIVE COUNSEL'S DIGESTAB 3041, Cunningham. Real estate transfer fees: prohibition.Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a transfer fee with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property, with specified exceptions.This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, other than excepted transfer fee covenants, as defined. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.Existing law, when a transfer fee is imposed upon real property on or after January 1, 2008, requires the person or entity imposing the transfer fee, as a condition of payment of the fee, to record a separate document meeting specified requirements. Existing law requires that document to contain, among other things, for private transfer fees created on or after February 8, 2011, absent a specified exception, a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by private transfer fee covenants that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property that person may have difficulty obtaining financing.This bill would provide that excepted transfer fee covenants are not required to comply with the notice described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
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	5	+	Enrolled August 15, 2018 Passed IN Senate August 13, 2018 Passed IN Assembly May 03, 2018 Amended IN Assembly April 24, 2018
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	7	+	Enrolled August 15, 2018
	8	+	Passed IN Senate August 13, 2018
	9	+	Passed IN Assembly May 03, 2018
	10	+	Amended IN Assembly April 24, 2018
	11	+
	12	+	CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
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5	14		Assembly Bill No. 3041
6		-	CHAPTER 306
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	16	+	Introduced by Assembly Member CunninghamFebruary 16, 2018
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	18	+	Introduced by Assembly Member Cunningham
	19	+	February 16, 2018
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8	21		An act to add Section 1098.6 to the Civil Code, relating to real estate transfer fees.
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10		-	[ Approved by Governor September 07, 2018. Filed with Secretary of State September 07, 2018. ]
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12	23		LEGISLATIVE COUNSEL'S DIGEST
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14	25		## LEGISLATIVE COUNSEL'S DIGEST
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16	27		AB 3041, Cunningham. Real estate transfer fees: prohibition.
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18	29		Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a transfer fee with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property, with specified exceptions.This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, other than excepted transfer fee covenants, as defined. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.Existing law, when a transfer fee is imposed upon real property on or after January 1, 2008, requires the person or entity imposing the transfer fee, as a condition of payment of the fee, to record a separate document meeting specified requirements. Existing law requires that document to contain, among other things, for private transfer fees created on or after February 8, 2011, absent a specified exception, a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by private transfer fee covenants that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property that person may have difficulty obtaining financing.This bill would provide that excepted transfer fee covenants are not required to comply with the notice described above.
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20	31		Existing law allows various fees to be included in the price of a residential real estate transfer. Existing law defines a transfer fee with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property that requires a fee be paid upon transfer of the real property, with specified exceptions.
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22	33		This bill, on or after January 1, 2019, would prohibit the creation of a transfer fee, other than excepted transfer fee covenants, as defined. The bill would provide that any transfer fee created in violation of this prohibition is void as against public policy.
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24	35		Existing law, when a transfer fee is imposed upon real property on or after January 1, 2008, requires the person or entity imposing the transfer fee, as a condition of payment of the fee, to record a separate document meeting specified requirements. Existing law requires that document to contain, among other things, for private transfer fees created on or after February 8, 2011, absent a specified exception, a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by private transfer fee covenants that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property that person may have difficulty obtaining financing.
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26	37		This bill would provide that excepted transfer fee covenants are not required to comply with the notice described above.
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28	39		## Digest Key
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30	41		## Bill Text
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32	43		The people of the State of California do enact as follows:SECTION 1. Section 1098.6 is added to the Civil Code, to read:1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
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34	45		The people of the State of California do enact as follows:
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36	47		## The people of the State of California do enact as follows:
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38	49		SECTION 1. Section 1098.6 is added to the Civil Code, to read:1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
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40	51		SECTION 1. Section 1098.6 is added to the Civil Code, to read:
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42	53		### SECTION 1.
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44	55		1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
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46	57		1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
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48	59		1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.
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52	63		1098.6. (a) (1) On or after January 1, 2019, a transfer fee shall not be created.
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54	65		(2) This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.
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56	67		(b) Any transfer fee created in violation of subdivision (a) is void as against public policy.
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58	69		(c) For purposes of this section, transfer fee has the same meaning as that term is defined in Section 1098.