Nevada Governor Brian Sandoval has signed into law a bill that bans private transfer fees on real estate-- joining over 30 other states that have banned or heavily restricted the controversial fees.

Sandoval signed into law Nevada Assembly Bill 271 on May 20th.  AB 271 makes all new private transfer fee obligations "void and unenforceable."  Existing beneficiaries of currently recorded private transfer fee covenants are subjected to new recording and notice requirements to preserve their interest.  The bill also creates civil penalties for creation of new private transfer fee obligations or failure to comply with the recording requirements.

Owners of Nevada properties burdened by private transfer fee obligations may file an affidavit in the public records if fee beneficiaries fail to comply with recording or notice requirements as a way of extinguishing the fee obligation.

Sellers of properties with existing private transfer fee obligations are also subjected to new disclosure requirements to buyers.

The new law went into effect immediately.

“These fees infringe on property rights and hurt Nevada consumers,” said Assemblywoman Irene Bustamante Adams,  who sponsored the legislation. “They have no place in the Nevada real estate market. We’ve made sure that when a homeowner buys a new property, he or she owns that home free and clear.”

“The Governor and Legislature stood up for homeowners by protecting consumers from these predatory fees,” said Sylvia Smith, Nevada Land Title Association President “This bill is an important step in enhancing consumer protections, safeguarding the real estate market and protecting our property rights system in Nevada.”