Enrolled SB 122: Relating to research on and examination of titles; relating to residency requirements for title insurance limited producers; relating to real estate transfer fees; and providing for an effective date.
00Enrolled SB 122 01 Relating to research on and examination of titles; relating to residency requirements for title 02 insurance limited producers; relating to real estate transfer fees; and providing for an effective 03 date. 04 _______________ 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) a loan assumption fee or similar fee charged by a person holding a 16 lien on the property; or 17 (2) a fee or commission paid to a licensed real estate broker for 18 brokerage services. 19 (b) In this section, "transfer fee" does not include 20 (1) a tax, assessment, fee, or charge imposed by a governmental 21 authority; 22 (2) a recording fee; 23 (3) a fee payable to a nonprofit, mandatory homeowners' association, 24 condominium association, or cooperative under an applicable declaration or covenant; 25 or 26 (4) a fee payable to an organization described in 26 U.S.C. 501(c)(3) 27 or (c)(4) (Internal Revenue Code) used exclusively for cultural, educational, 28 charitable, recreational, environmental, conservation, or similar activities that benefit 29 the real estate conveyed. 30 (c) A provision that violates this section is void. 31 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).