Civil Code § 1098.6 - California Law

(a)(1) On or after January 1, 2019, a transfer fee shall not be created.

(2)This subdivision does not apply to excepted transfer fee covenants as defined by Section 1228.1 of Title 12 of the Code of Federal Regulations. Excepted transfer fee covenants are not required to comply with subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5.

(3)This subdivision does not apply to a private transfer fee

covenant if all of the following requirements are met:

(A)The covenant is created pursuant to an agreement entered into before June 1, 2009.

(B)The covenant is applicable to land that is identified in the

agreement.

(C)The agreement was in settlement of litigation or approved by a government agency or body.

(D)The agreement was recorded in each county in which the land identified in the agreement is located.

(E)The agreement specifies the development area in which the covenant shall apply to any covered parcel to be created within that development area.

(F)The covenant complies with the requirements of Section 1098.5, except that the

requirement of subparagraph (H) of paragraph (2) of subdivision (b) of Section 1098.5 does not apply.

(b)Any transfer fee created in violation of subdivision (a) is void as against public policy.

(c)For purposes of this section, “transfer fee” has the same meaning as that term is defined in Section 1098.