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| To enact section 5301.057 of the Revised Code to | 1 |
| prohibit transfer fee covenants in certain real | 2 |
| estate transactions. | 3 |
| Section 1. That section 5301.057 of the Revised Code be | 4 |
| enacted to read as follows: | 5 |
| Sec. 5301.057. (A) As used in this section: | 6 |
| (1) "Environmental covenant" means a servitude that imposes | 7 |
| activity and use limitations on real property and meets the | 8 |
| requirements of section 5301.82 of the Revised Code. | 9 |
| (2) "Transfer" means the sale, gift, conveyance, assignment, | 10 |
| inheritance, or other transfer of an ownership interest in real | 11 |
| property located in this state. | 12 |
| (3) "Transfer fee" means a fee or charge required by a | 13 |
| transfer fee covenant and payable upon the transfer of an interest | 14 |
| in real property, or payable for the right to make or accept such | 15 |
| a transfer, regardless of whether the fee or charge is a fixed | 16 |
| amount or is determined as a percentage of the value of the | 17 |
| property, the purchase price, or other consideration given for the | 18 |
| transfer. The following are not transfer fees for purposes of this | 19 |
| section: | 20 |
| (a) Any consideration payable by the grantee to the grantor | 21 |
| for the interest in real property being transferred. For the | 22 |
| purposes of division (A)(3)(a) of this section, an interest in | 23 |
| real property includes a separate mineral estate and its | 24 |
| appurtenant surface access rights. | 25 |
| (b) Any commission payable to a licensed real estate broker | 26 |
| or salesperson for the transfer of real property pursuant to an | 27 |
| agreement between the broker or salesperson and the grantor or the | 28 |
| grantee; | 29 |
| (c) Any interest, charges, fees, or other amounts payable by | 30 |
| a borrower to a lender pursuant to a loan secured by a mortgage | 31 |
| against real property; | 32 |
| (d) Any rent, reimbursement, charge, fee, or other amount | 33 |
| payable by a lessee to a lessor under a lease; | 34 |
| (e) Any consideration payable to the holder of an option to | 35 |
| purchase an interest in real property or the holder of a right of | 36 |
| first refusal or first offer to purchase an interest in real | 37 |
| property for waiving, releasing, or not exercising the option or | 38 |
| right upon the transfer of the property to another person; | 39 |
| (f) Any tax, fee, charge, assessment, fine, or other amount | 40 |
| payable to or imposed by a governmental authority; | 41 |
| (g) Any fee, charge, assessment, fine, or other amount | 42 |
| payable to a homeowners, condominium, cooperative, mobile home, or | 43 |
| property owners association pursuant to a declaration or covenant | 44 |
| or law applicable to the association; | 45 |
| (h) Any payment required pursuant to an environmental | 46 |
| covenant. | 47 |
| (4) "Transfer fee covenant" means a declaration or covenant | 48 |
| recorded against the title to real property that requires or | 49 |
| purports to require the payment of a transfer fee to the declarant | 50 |
| or other person specified in the declaration or covenant or to | 51 |
| their successors or assigns upon a subsequent transfer of an | 52 |
| interest in the real property. | 53 |
| (B) A transfer fee covenant recorded in this state on or | 54 |
| after the effective date of this section does not run with the | 55 |
| title to real property and is not binding on or enforceable | 56 |
| against any subsequent owner, purchaser, or mortgagee of any | 57 |
| interest in real property as an equitable servitude or otherwise. | 58 |
| (C) Any lien purporting to secure the payment of a transfer | 59 |
| fee under a transfer fee covenant that is recorded in this state | 60 |
| on or after the effective date of this section is void. | 61 |