Bill Text: CA SB1399 | 2023-2024 | Regular Session | Amended
Bill Title: Transfer of real property: transfer fees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-07-03 - Read second time. Ordered to consent calendar. [SB1399 Detail]
Download: California-2023-SB1399-Amended.html
|
Amended
IN
Assembly
June 25, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1399
| Introduced by Senator Stern |
February 16, 2024 |
An act to amend Section 1098.6 of the Civil Code, relating to property.
LEGISLATIVE COUNSEL'S DIGEST
SB 1399, as amended, Stern.
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 those covenants specified requirements are met, including
that the covenants are created pursuant to an agreement entered into before January 1, 2019, 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1098.6 of the Civil Code is amended 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.
(3) This subdivision does not apply to a private transfer fee covenants if those covenants are
covenant if all of the following requirements are met:
(A) The covenant is created pursuant to an agreement entered into before January 1, 2019, applicable June 1, 2009.
(B) The covenant is applicable to land that is identified in the agreement, and the agreement
agreement.
(C) The agreement was in settlement of litigation or approved by a government agency or body.
(D) The agreement was recorded in each county in which the land identified in the agreement is located.
(E) The agreement specifies the development area in which the covenant shall apply to any covered parcel to be created within that development area.
(F) The covenant complies with the requirements of Section 1098.5, except that the
requirement of subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5 does not apply.
(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.
