Oklahoma § 60-350 - Definitions - Legislative findings - Recorded transfer

§ 60-350. Definitions - Legislative findings - Recorded transfer

fees.

A. As used in this section:

1. “Association” means a nonprofit mandatory membership

organization comprised of owners of homes, condominiums,

cooperatives, manufactured homes, or any interest in real property,

created pursuant to a declaration, covenant, or other applicable

law;

2. “Transfer” means the sale, gift, grant, conveyance,

assignment, inheritance, or other transfer of an interest in real

property located in this state;

3. “Transfer fee” means a fee or charge imposed by a transfer

fee covenant, but shall not include any tax, assessment, fee or

charge imposed by a governmental authority pursuant to applicable

laws, ordinances, or regulations; and

4. “Transfer fee covenant” means a provision in a document,

whether recorded or not and however denominated, which purports to

run with the land or bind current owners, purchasers or successors

in title to specified real property located in this state, and which

obligates a transferee or transferor of all or part of the property

or any interest thereon to pay a fee or charge to a third person or

entity upon transfer of an interest in all or part of the property,

Oklahoma Statutes - Title 60. Property

or in consideration for permitting any such transfer. The term

“transfer fee covenant” shall not include:

a.

any provision of a purchase contract, option,

mortgage, security agreement, real property listing

agreement, or other agreement that obligates one party

to the agreement to pay the other party as full or

partial consideration for the agreement or for a

waiver of rights under the agreement if the amount to

be paid is:

(1) a loan assumption fee or similar fee charged by a

lender that holds a mortgage on the property, and

(2) a fee or commission paid to a licensed real

estate broker for brokerage services rendered in

connection with the transfer of the property for

which the fee or commission is paid,

b.

any provision in a deed, memorandum or other document

recorded for the purpose of providing record notice of

an agreement prescribed in subparagraph a of paragraph

4 of subsection A of this section,

c.

any rent, reimbursement, charge, fee or other amount

payable by a lessee to a lessor under a lease,

including any fee payable to the lessor for consenting

to an assignment, sublease, encumbrance or transfer of

the lease,

d.

any consideration payable to the holder of an option

to purchase an interest in the real property or to the

holder of a right of first refusal or first offer to

purchase an interest in real property and paid for

waiving, releasing or not exercising the option or

right on transfer of the property to another person,

provided that the payment is on a one-time basis upon

the next transfer, and once paid shall not bind

successors in title to the property,

e.

any fee, charge, assessment, dues, contribution or

other amount relating to the purchase or transfer of a

club membership related to the real property owner by

the transferor,

f.

any provision of a document requiring payment of a fee

or charge to an association comprised of owners of

properties described therein to be used exclusively

for purposes authorized in the document, as long as no

portion of the fee is required to be passed through to

a third party or entity designated or identifiable by

description in the document or another document

referenced therein, and

g.

any fee that is charged as a typical real estate

closing cost, including but not limited to escrow

Oklahoma Statutes - Title 60. Property

fees, settlement fees, abstracting fees, legal fees or

title insurance premiums.

B. The Legislature makes the following findings:

1. The public policy of this state favors the transferability

of interest in real property free from unreasonable restraints on

alienation and covenants or servitudes that do not touch and concern

the property; and

2. A transfer fee covenant violates this public policy by

impairing the marketability of title to the affected real property

and constitutes an unreasonable restraint on alienation, regardless

of the duration of the covenant or the amount of the transfer fee

set forth in the covenant.

C. A transfer fee recorded, filed or entered into in this state

on or after the effective date of this section does not run with the

title to real property and is not binding on or enforceable at law

or in equity against any owner, subsequent owner, purchaser or

mortgagee of any interest in real property as an equitable

servitude, personal obligation or otherwise. Any private transfer

fee obligation that is recorded, filed or entered into in this state

on or after the effective date of this section is void and

unenforceable.

D. Nothing in this section shall imply that a transfer fee

covenant recorded prior to the effective date of this section is

valid or enforceable.

Added by Laws 2011, c. 282, § 1.