Topic:
Transfer Fee Covenant Act
(Wilhelmi, D-Joliet; Fritchey, D-Chicago) creates the Transfer Fee Covenant Act that declares that transfer fee covenants violate the public policy of favoring the transferability of real property free of unreasonable restraints. A transfer fee is something every future buyer pays to the developer for the developer's initial efforts. The Realtors promoted this bill to ensure that this fee didn't start appearing in Illinois real estate transactions as it has elsewhere. Makes it void for a transfer fee covenant or a lien to secure the payment of a transfer fee that is recorded after the effective date and does not run with the title to the real property. Provides that it cannot be presumed that the provisions of this Act mean that a transfer fee covenant or lien recorded before the effective date is valid and enforceable. Passed both chambers.