§ 35-4-434 — Disclosure

(a) Any contract for the sale of real property subject to a private transfer fee obligation shall include a provision disclosing the existence of that obligation, a description of the obligation, and a statement that private transfer fee obligations are subject to certain prohibitions under this article. A contract for sale of real property which does not conform to the requirements of this section is not enforceable by the seller against the buyer, nor is the buyer liable to the seller for damages under such a contract, and the buyer under the contract is entitled to the return of all deposits made in connection with the sale of the real property.
(b) Where a private transfer fee obligation is not disclosed under subsection (a) and a buyer subsequently discovers the existence of the private transfer fee obligation after title to the property has passed to the buyer, the buyer has the right to recover both:
(1) Any and all damages resulting from the failure to disclose the private transfer fee obligation, including, but not limited to, the amount of any private transfer fee paid by the buyer, or the difference between:
a. The market value of the real property if it were not subject to a private transfer fee obligation.
b. The market value of the real property as subject to a private transfer fee obligation.
(2) All attorney fees, expenses, and costs incurred by the buyer in seeking the buyer’s remedies under this subsection.
(c) Any provision in a contract for sale of real property that purports to waive the rights of a buyer under this section is void.
(d) A real estate licensee shall have no duty to discover the existence of any private transfer fee obligation.

Legislative History

(Act 2011-260, p. 474, §1.)