N.C. Gen. Stat. » Chapter 39A
NC General Statutes

N.C. Gen. Stat. § 39A-1 (2026)

Public policy

✓ current as of July 2026
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(a) The public policy of this State favors the marketability of real property and the transferability of interests in real property free from title defects, unreasonable restraints on alienation, and covenants or servitudes that do not touch and concern the property.

(b) A transfer fee covenant violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation and transferability of property, regardless of the duration of the covenant or the amount of the transfer fee set forth in the covenant. (2010-32, s. 1; 2015-264, s. 28(c).)

 

Notes of Decisions
Cited in 8 cases (5 in the last 5 years), 2015–2025 · leading case: Wilner v. The Cedars of Chapel Hill, LLC, 773 S.E.2d 333 (N.C. Ct. App. 2015).
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Wilner v. The Cedars of Chapel Hill, LLC, 773 S.E.2d 333 (N.C. Ct. App. 2015). · cites it 2× “" N.C. Gen.Stat. § 39A-1(b) (2013). Chapter 39A defines a transfer fee as "a fee or charge payable upon the transfer of an interest in real property or payable for the right to make or accept such transfer, regardless of whether the fee or charge is a fixed amount or is…”
Dernoshek v. Firstservice Residential, Inc. (M.D.N.C. 2021). · cites it 8× “Specifically, he asserts that the defendants violated three North Carolina statutes: (1) a North Carolina statute prohibiting transfer fee covenants, N.C. Gen. Stat § 39A-1 et seq., Doc. 3 at ¶¶ 144–54; (2) the North Carolina Unfair and Deceptive Trade Practices Act, N.”
The Broad Street Clinic Found. v. Weeks (N.C. Ct. App. 2020). · cites it 5× “WEEKS Opinion of the Court such requirement is a transfer fee covenant which is specifically prohibited by, and deemed void under, N.C. Gen. Stat. § 39A-1 et seq.” That same day, Plantation Venture, LLC also moved to dismiss the Clinic’s claims pursuant to Rule 12(b)(6),…”
The Broad Street Clinic Found. v. Weeks (N.C. Ct. App. 2020). · cites it 5× “WEEKS Opinion of the Court such requirement is a transfer fee covenant which is specifically prohibited by, and deemed void under, N.C. Gen. Stat. § 39A-1 et seq.” That same day, Plantation Venture, LLC also moved to dismiss the Clinic’s claims pursuant to Rule 12(b)(6),…”
Carpenter v. William Douglas Mgmt., Inc. (W.D.N.C. 2022). · cites it 4× “The Amended Complaint brings the following individual and class claims against Defendants: (1) violation of N.C. Gen. Stat. § 39A-1, et seq. (the “North Carolina Transfer Fee Covenant Prohibition Act”); (2) violation of the North Carolina Unfair and Deceptive Trade Practices…”
Skoutelis v. Greasy Branch Water Corp. (N.C. Ct. App. 2025). · cites it 3× “N.C.G.S. § 39A-1; Broad St. Clinic Found.”
Carpenter v. William Douglas Mgmt., Inc. (W.D.N.C. 2021). · cites it 2× “The Amended Complaint asserts claims for: (1) violations N.C. Gen. Stat. § 39A-1, et seq. (the “Transfer Fee Covenant Prohibition Act”); (2) violations of the North Carolina Unfair and Deceptive Trade Practices Act, N.”
Susan Carpenter v. William Douglas Mgmt. Inc (4th Cir. 2025). · cites it 2× “See N.C. Gen. Stat. § 39A-1(a). We must reject that argument.”
— N.C. Gen. Stat. § 39A-1(a) — 3 cases
The Broad Street Clinic Found. v. Weeks (N.C. Ct. App. 2020). “WEEKS Opinion of the Court such requirement is a transfer fee covenant which is specifically prohibited by, and deemed void under, N.C. Gen. Stat. § 39A-1 et seq.” That same day, Plantation Venture, LLC also moved to dismiss the Clinic’s claims pursuant to Rule 12(b)(6),…”
The Broad Street Clinic Found. v. Weeks (N.C. Ct. App. 2020). “WEEKS Opinion of the Court such requirement is a transfer fee covenant which is specifically prohibited by, and deemed void under, N.C. Gen. Stat. § 39A-1 et seq.” That same day, Plantation Venture, LLC also moved to dismiss the Clinic’s claims pursuant to Rule 12(b)(6),…”
Susan Carpenter v. William Douglas Mgmt. Inc (4th Cir. 2025). “See N.C. Gen. Stat. § 39A-1(a). We must reject that argument.”
— N.C. Gen. Stat. § 39A-1(b) — 4 cases
Wilner v. The Cedars of Chapel Hill, LLC, 773 S.E.2d 333 (N.C. Ct. App. 2015). “" N.C. Gen.Stat. § 39A-1(b) (2013). Chapter 39A defines a transfer fee as "a fee or charge payable upon the transfer of an interest in real property or payable for the right to make or accept such transfer, regardless of whether the fee or charge is a fixed amount or is…”
The Broad Street Clinic Found. v. Weeks (N.C. Ct. App. 2020). “WEEKS Opinion of the Court such requirement is a transfer fee covenant which is specifically prohibited by, and deemed void under, N.C. Gen. Stat. § 39A-1 et seq.” That same day, Plantation Venture, LLC also moved to dismiss the Clinic’s claims pursuant to Rule 12(b)(6),…”
The Broad Street Clinic Found. v. Weeks (N.C. Ct. App. 2020). “WEEKS Opinion of the Court such requirement is a transfer fee covenant which is specifically prohibited by, and deemed void under, N.C. Gen. Stat. § 39A-1 et seq.” That same day, Plantation Venture, LLC also moved to dismiss the Clinic’s claims pursuant to Rule 12(b)(6),…”
Susan Carpenter v. William Douglas Mgmt. Inc (4th Cir. 2025). “See N.C. Gen. Stat. § 39A-1(a). We must reject that argument.”
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