Bill > HB2495

This bill amends Tennessee law concerning real property to clarify that certain fees associated with club memberships related to a property or community are not considered "transfer fee covenants." A transfer fee covenant is generally a provision in a document that requires a buyer or seller to pay a fee when a property is transferred. This bill specifically states that if a document requires a person buying or selling a property to pay any fee, charge, assessment, dues, contribution, deposit, or other amount to acquire, maintain, or transfer a membership in a club that is connected to the real estate or the surrounding community, that requirement will not be classified as a transfer fee covenant. This distinction is important because transfer fee covenants are often restricted or prohibited by law.