(a) A transfer fee covenant recorded after June 10, 2011, or any lien to the extent that it purports to secure the payment of a transfer fee, is not binding on or enforceable against the affected real property or any subsequent owner, purchaser, or mortgagee of any interest in the property.
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Terms Used In Tennessee Code 66-37-104

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Transfer: means the sale, gift, grant, conveyance, assignment, inheritance, or other transfer of an interest in real property located in this state. See Tennessee Code 66-37-102
  • Transfer fee: means a fee or charge imposed by a transfer fee covenant, but does not include any tax, assessment, fee or charge imposed by a governmental authority pursuant to applicable laws, ordinances, or regulations. See Tennessee Code 66-37-102
  • Transfer fee covenant: means a provision in a document, whether recorded or not and however denominated, that purports to run with the land or bind current owners or successors in title to specified real property located in this state, and that obligates a transferee or transferor of all or part of the property to pay a fee or charge to a third person upon transfer of an interest in all or part of the property, or in consideration for permitting any such transfer. See Tennessee Code 66-37-102
(b) Nothing in this chapter shall imply that a transfer fee covenant recorded prior to June 10, 2011 is valid or enforceable.
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