DE SB104 | 2011-2012 | 146th General Assembly
Status
Completed Legislative Action
Spectrum: Partisan Bill (Democrat 2-0)
Status: Passed on July 13 2011 - 100% progression
Action: 2011-07-13 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]
Spectrum: Partisan Bill (Democrat 2-0)
Status: Passed on July 13 2011 - 100% progression
Action: 2011-07-13 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]
Summary
As currently drafted, 314(c) of Title 25 of the Delaware Code sets forth limitations on the time within which a contract for the sale of “improved or unimproved residential real estate” may remain executory. The primary purpose of the statute is the protection of single-family residential purchasers from entering into predatory installment sale contracts couched as seller financing. However, the term “improved or unimproved residential real estate” could be interpreted to include multi-unit residential property, such as an apartment building, or even unimproved land currently zoned or approved only for residential use but upon which office, commercial or industrial uses may be contemplated in the future. In commercial transactions, in which contracts for the sale of real property are often contingent upon the receipt of approvals necessary to develop the property, obtaining such approvals can take three or more years. Applying 314(c) of Title 25 of the Delaware Code to such transactions, thereby limiting the period within which contracts involving seller financing may remain executory to periods of six to twelve months, may allow a party to such a contract to void the contract where the other party has not yet been able to obtain the necessary approvals, thus allowing such voiding party to relieve itself of contractual obligations and in some cases receive a windfall by entering into a new contract with a different party at a higher price. Several Delaware laws distinguish between 1-to-4-family residential real property used primarily for personal, family or household purposes and other types of property. The purpose of these changes is to give certainty that 314(c) of Title 25 of the Delaware Code applies only to such residential real property in accordance with the intended purpose of such subsection.
Title
An Act To Amend Title 25 Of The Delaware Code Relating To Seller Financing For Consumer Purpose Properties.
Sponsors
Roll Calls
2011-06-30 - House - House Third Reading (Y: 40 N: 0 NV: 1 Abs: 0) [PASS]
2011-06-21 - Senate - Senate Third Reading (Y: 20 N: 0 NV: 1 Abs: 0) [PASS]
2011-06-21 - Senate - Senate Third Reading (Y: 20 N: 0 NV: 1 Abs: 0) [PASS]
History
| Date | Chamber | Action |
|---|---|---|
| 2011-07-13 | Signed by Governor | |
| 2011-06-30 | Passed by House of Representatives. Votes: Passed 40 YES 0 NO 1 NOT VOTING 0 ABSENT 0 VACANT | |
| 2011-06-28 | Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING/INSURANCE/COMMERCE) in House with 8 On Its Merits | |
| 2011-06-22 | Introduced and Assigned to Economic Development/Banking/Insurance/Commerce Committee in House | |
| 2011-06-21 | Passed by Senate. Votes: Passed 20 YES 0 NO 1 NOT VOTING 0 ABSENT 0 VACANT | |
| 2011-06-08 | Reported Out of Committee (COMMUNITY/COUNTY AFFAIRS) in Senate with 4 On Its Merits | |
| 2011-06-02 | Assigned to Community/County Affairs Committee in Senate |
