HCS HB 2239 -- REAL PROPERTY TRANSFERS

SPONSOR:  Stevenson

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 10 to 0.

This substitute specifies that any transfer fee, declaration, or
covenant which requires the payment of a fee to a specific person
upon the transfer of real estate will not be binding on or
enforceable against any subsequent owner, purchaser, or mortgagee
of any interest in real property.  Any lien claiming to secure
the payment of a transfer fee under a transfer fee covenant
recorded in Missouri on or after September 1, 2008, will be void
and unenforceable.

A water and sewer line easement cannot be considered as a
transfer of title of real property to counties.  These easements
will not be required to be proved or acknowledged to be valid if
authorized for recording by the county commission.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the transfer fee covenants that
companies place on titles to real property unduly burden the
property owner when trying to resell the property and create a
cloud on a title.  The covenants make a clean title very
difficult and are brought upon unsuspecting buyers of property at
closing.

Testifying for the bill were Representative Stevenson; Missouri
Land Title Association; and Missouri Bankers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm