2012 -- S 2215

=======

LC00674

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO REAL PROPERTY - TRANSFER FEES

     Introduced By: Senator Walter S. Felag

     Date Introduced: January 24, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Chapter 34-11 of the General Laws entitled "Form and Effect of

1-2

Conveyances" is hereby amended by adding thereto the following section:

1-3

     34-11-42. Transfer fees prohibited. – No person or business entity who sells real

1-4

property shall charge, collect, receive, or be entitled to a fee based solely on the subsequent resale

1-5

or transfer of said property. This prohibition includes, but is not limited to, fees or charges

1-6

imposed by a real estate developer based upon the subsequent resale or transfer of said real

1-7

property. Any housing development that is covered by the definition in subdivision 45-53-3(9) is

1-8

exempt from this section. Further, any fee or charge connected with the transfer of properties with

1-9

a conservation restriction as defined in subsection 34-39-2(a) is exempt from the provisions of

1-10

this section. Any covenant recorded on or after July 1, 2012, imposing any charge or fee

1-11

inconsistent with this section shall be void and unenforceable against any subsequent owner,

1-12

purchaser or mortgage.

1-13

     SECTION 2. This act shall take effect upon passage.

=======

LC00674

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO REAL PROPERTY - TRANSFER FEES

***

2-1

     This act would prohibit transfer fees based solely upon the resale or subsequent transfer

2-2

of real property. This act would further exempt housing developers connected with section 45-53-

2-3

3(6) and conservative restrictions as defined in section 34-39-2.

2-4

     This act would take effect upon passage.

=======

LC00674

=======