Last week, the Kansas Senate approved legislation (HB 2092) on a unanimous vote of 40 to 0 that protects homebuyers from hidden fees buried in the deed covenants that require them to pay a private transfer fee (typically 1% of the sales price) to a designated third party.. HB 2092 passed the Kansas House of Representatives last month on an overwhelming vote of 123 to 2. This legislation has now advanced to the Governor’s desk for her signature.
This practice, which is widespread in other areas of the country, has led to many failed real estate transactions due to disputes over the fees and can cause numerous title defects in the property that can prevent the buyer from obtaining title insurance or mortgage financing. If approved by the Governor, this legislation would make all private transfer fee provisions unenforceable against future owners of the property.
Once this legislation is signed by the Governor, it will protect all homebuyers in this state from the harmful effects of these private transfer fee covenants. If you would like more information on this legislation, you can cut and paste the links below into your web browser.
Full Text of HB 2092:
http://www.kslegislature.org/bills/2010/2092.pdf
Supplemental Briefing on HB 2092:
http://www.kslegislature.org/supplemental/2010/SN2092.pdf
