Bill Text: MS HB886 | 2010 | Regular Session | Enrolled

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Bill Title: Fee for future conveyance of property; prohibit payment of certain.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2010-03-15 - Approved by Governor [HB886 Detail]

Download: Mississippi-2010-HB886-Enrolled.html

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MISSISSIPPI LEGISLATURE

2010 Regular Session

To: Judiciary A

By: Representative Snowden

House Bill 886

(As Sent to Governor)

AN ACT 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.  (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 residential subdivision;

          (b)  Has a membership primarily consisting of the owners of the property covered by the dedicatory instrument for the residential subdivision; and

          (c)  Manages or regulates the residential subdivision for the benefit of the owners of property in the residential subdivision.

     (2)  A deed restriction or other covenant running with the land applicable to the conveyance of residential real property that requires a transferee of residential 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 residential 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, 2010.