00                     CS FOR SENATE BILL NO. 122(L&C)                                                                    
01 "An Act relating to research on and examination of titles; relating to residency                                        
02 requirements for title insurance limited producers; relating to real estate transfer fees;                              
03 and providing for an effective date."                                                                                   
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 21.66.170(a) is amended to read:                                                                   
06            (a)  A policy or contract of title insurance may not be written until the title                              
07       insurance company [CONDUCTS OR] has, through a licensed title insurance                                       
08       limited producer, conducted a reasonable search and examination of the title and the                      
09       company has made a determination of insurability of title in accordance with its                              
10       established underwriting practices. Evidence of the determination shall be preserved                              
11       and retained in the files of the title insurance company or its agent for a period of not                         
12       less than 15 years after the policy or contract of title insurance has been issued. In lieu                       
13       of retaining the original evidence, the title insurance company or the title insurance                            
14       limited producer, may, in the regular course of business, establish a system by which                             

01       all or part of these writings are recorded, copied, or reproduced by any photographic,                            
02       photostatic, microfilm, microcard, miniature photographic, or other process that                                  
03       accurately reproduces or forms a durable medium for reproducing the original.                                     
04    * Sec. 2. AS 21.66.270 is amended to read:                                                                         
05            Sec. 21.66.270. Title insurance limited producers to be licensed. A title                                  
06       insurance limited producer shall be licensed in the manner provided for in AS 21.27.                              
07       A title insurance limited producer may not obtain a license unless the producer is                            
08       a resident of the state. A title insurance limited producer may not be licensed to sell                       
09       insurance other than title insurance.                                                                             
10    * Sec. 3. AS 34.15 is amended by adding a new section to read:                                                     
11            Sec. 34.15.105. Transfer fee covenants prohibited. (a) A document that                                     
12       conveys real estate may not include a provision that requires a subsequent grantee or                             
13       grantor to pay a transfer fee to convey the real estate, except a document that conveys                           
14       real estate may include a provision that requires a transfer fee if the fee is                                    
15                 (1)  payable on a one-time basis only on the next transfer of the interest                              
16       in real property;                                                                                                 
17                 (2)  a loan assumption fee or similar fee charged by a person holding a                                 
18       lien on the property; or                                                                                          
19                 (3)  a fee or commission paid to a licensed real estate broker for                                      
20       brokerage services.                                                                                               
21            (b)  In this section, "transfer fee" does not include                                                        
22                 (1)  a tax, assessment, fee, or charge imposed by a governmental                                        
23       authority;                                                                                                        
24                 (2)  a recording fee;                                                                                   
25                 (3)  a fee payable to a nonprofit, mandatory homeowners association,                                    
26       condominium association, or cooperative under an applicable declaration or covenant;                              
27       or                                                                                                                
28                 (4)  a fee payable to an organization described in 26 U.S.C. 501(c)(3)                                  
29       or (c)(4) (Internal Revenue Code) used exclusively for cultural, educational,                                     
30       charitable, recreational, environmental, conservation, or similar activities that benefit                         
31       the real estate conveyed.                                                                                         

01            (c)  A provision that violates this section is void.                                                         
02    * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).