Amends TCA Title 8 and Title 66.

This bill requires the following:<br /> <br /> (1) For a transfer of real property located within a community governed by a nonprofit association ("association"), the transferee must pay a fee of $2,500 to the nonprofit association. However, this only applies to the following:<br /> <br /> (A) A transfer of real property located within a community governed by an association that has voted each year by a majority vote of its board of directors to impose the fee on or after January 1, 2024;<br /> <br /> (B) A transfer that occurs on or after January 1, 2024; and<br /> <br /> (C) An association that is responsible for the governance and maintenance of a residential community that contains at least 5,000 lots or units; maintains private roads in its community or provides direct funding for certain maintenance of public roads in its community; and provides direct funding for certain emergency services for the safety and protection of its property owner members;<br /> <br /> (2) The association must increase the fee described in (1) on January 1 of each subsequent year by an amount equal to the percentage increase, if any, in the annual assessment paid by each member of the association;<br /> <br /> (3) A business entity that conducts the closing for the transfer must collect the fee and remit it to the association; and<br /> <br /> (4) The association must deposit the fee into a reserve fund and use the moneys for the maintenance, repair, or improvement of the association's roads, utility infrastructure, or common area facilities.<br /> <br /> If the fee is not collected by an association, then a lien in favor of the association attaches to the transferred real property on the date of the transfer and remains until the fee is remitted to the association. Further, if the fee is not remitted to the association within 90 days following the transfer, then this bill authorizes the association to suspend the membership rights of the owner and seek enforcement of its lien by judicial foreclosure.<br /> <br /> This bill requires an association to record notice of the fee in the office of the register of deeds of each county in which the real property is located. The notice must state the following:<br /> <br /> (1) The association's name, address, and phone number;<br /> <br /> (2) The fee obligation is intended to run with the land and apply to all future transfers of real property located within the community;<br /> <br /> (3) The association must use the fee to benefit its roads, utility infrastructure, or common area facilities;<br /> <br /> (4) The owner of the real property must provide notice to the association of the pending transfer at least seven days before the transfer occurs; and<br /> <br /> (5) The business entity that conducts the closing for the transfer of the real property must collect and remit the fee to the association.<br />