Bill Text: GA HB129 | 2011-2012 | Regular Session | Enrolled
Bill Title: Conveyances; future conveyance of real property; prohibit fee
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Engrossed - Dead) 2012-03-29 - Senate Conference Committee Report Adopted [HB129 Detail]
Download: Georgia-2011-HB129-Enrolled.html
12 LC 39
0299ERS
COMMITTEE
OF CONFERENCE SUBSTITUTE TO HB 129
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 44 of the Official Code of Georgia Annotated, relating to property,
so as to change certain provisions relating to property; to prohibit a fee for a
future conveyance of real property except under limited circumstances; to
provide for a definition; to provide for certain requirements for obtaining
money judgments on obligations secured by deeds to secure debts or mortgages on
real property; 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.
Title
44 of the Official Code of Georgia Annotated, relating to property, 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
other than by judicial or nonjudicial foreclosure.
(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 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;
(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; or
(5)
A community land trust or community development corporation that is tax-exempt
under Section 501(c)(3) of the federal Internal Revenue Code, provided that the
fee is charged for and applied to expenses incurred in the administration of
ongoing community program services or rights provided to shared equity property
interests within, as applicable, the land subject to the community land trust or
the geographic area served by the community development
corporation."
SECTION
2.
Said
title is further amended by adding a new Code section to read as follows:
"44-14-161.1.
When
the holder of a deed to secure debt, mortgage, or other lien contract against
real estate obtains a judgment on the debt prior to foreclosure of the real
estate and thereafter forecloses on the real estate, any person or entity
obligated on the debt may file, within 30 days after the date of foreclosure, a
complaint against the holder to establish the fair market value of the real
estate. The court shall make a finding of the fair market value of the real
estate as of the date of foreclosure. If the court determines that the real
estate has been sold for less than fair market value, the holder may elect that
either:
(1)
The court set aside the foreclosure sale and order resale of the real estate;
or
(2)
The remaining balance on the judgment be reduced by the fair market value, with
any sum in excess of full satisfaction of the amount remaining due on the
judgment to be paid from the holder to such person or entity obligated on the
debt."
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.
