2012 -- S 2257

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LC00398

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO REAL PROPERTY -- TRANSFER FEES

     Introduced By: Senator Walter S. Felag

     Date Introduced: January 26, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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

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

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

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

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purchaser or mortgagee.

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     SECTION 2. This act shall take effect upon passage.

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LC00398

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO REAL PROPERTY -- TRANSFER FEES

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

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

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

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     This act would take effect upon passage.

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LC00398

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