00                            SENATE BILL NO. 122                                                                         
01 "An Act relating to real estate transfer fees and increasing the length of time title                                   
02 records must be maintained by a title plant."                                                                           
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 21.66.200 is amended to read:                                                                      
05            Sec. 21.66.200. Title plant requirements. A title insurance company shall                                  
06       own and maintain in the recording district in which its principal office in the state is                          
07       located a title plant consisting of adequate maps and fully indexed records showing all                           
08       instruments of record affecting all land within the recording district for a period of at                         
09       least 50 [25] years immediately before the date a policy of title insurance is issued by                      
10       the title insurance company. It shall also directly or through its agent own and                                  
11       maintain a comparable title plant for each additional recording district in which it or                           
12       its agent maintains an office to transact a title insurance business.                                             
13    * Sec. 2. AS 34.15 is amended by adding a new section to read:                                                     
14            Sec. 34.15.105. Transfer fee covenants prohibited. (a) A document that                                     

01       conveys real estate may not include a provision that requires a subsequent grantee or                             
02       grantor to pay a transfer fee to convey the real estate, except a document that conveys                           
03       real estate may include a provision that requires a transfer fee if the fee is                                    
04                 (1)  payable on a one-time basis only on the next transfer of the interest                              
05       in real property;                                                                                                 
06                 (2)  a loan assumption fee or similar fee charged by a person holding a                                 
07       lien on the property; or                                                                                          
08                 (3)  a fee or commission paid to a licensed real estate broker for                                      
09       brokerage services.                                                                                               
10            (b)  In this section, "transfer fee" does not include                                                        
11                 (1)  a tax, assessment, fee, or charge imposed by a governmental                                        
12       authority;                                                                                                        
13                 (2)  a recording fee;                                                                                   
14                 (3)  a fee payable to a nonprofit, mandatory homeowners association,                                    
15       condominium association, or cooperative under an applicable declaration or covenant;                              
16       or                                                                                                                
17                 (4)  a fee payable to an organization described in 26 U.S.C. 501(c)(3)                                  
18       or (c)(4) (Internal Revenue Code) used exclusively for cultural, educational,                                     
19       charitable, recreational, environmental, conservation, or similar activities that benefit                         
20       the real estate conveyed.                                                                                         
21            (c)  A provision that violates this section is void.