Bill Text: NC H203 | 2013-2014 | Regular Session | Amended
Bill Title: Revisions/Homeowner/Homebuyer Protection Act
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2013-04-22 - Ref To Com On Judiciary I [H203 Detail]
Download: North_Carolina-2013-H203-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 3
HOUSE BILL 203
Committee
Substitute Favorable 4/11/13
Third Edition Engrossed 4/18/13
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Short Title: Revisions/Homeowner/Homebuyer Protection Act. |
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Sponsors: |
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Referred to: |
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March 5, 2013
A BILL TO BE ENTITLED
AN ACT Amending the homeowner and homebuyer protection act.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 47G‑1 reads as rewritten:
"§ 47G‑1. Definitions.
The following definitions apply in this Chapter:
…
(4) Option contract or contract. – An option contract for the purchase of property that includes or is combined with, or is executed in conjunction with, a covered lease agreement. The term does not include a contract which obligates the buyer to purchase the property even though the obligation may be subject to one or more contingencies or unilateral rights to terminate the contract.
…."
SECTION 2. G.S. 47G‑7 reads as rewritten:
"§ 47G‑7. Remedies.
A violation of any provision of this Chapter constitutes
an unfair trade practice under G.S. 75‑1.1. An option purchaser
may bring an action for the recovery of damages, to void a transaction executed
in violation of this Chapter, as well as for declaratory or equitable relief
for a violation of this Chapter. The rights and remedies provided herein are
cumulative to, and not a limitation of, any other rights and remedies provided
by law or equity. Nothing in this Chapter shall be construed to subject an
individual homeowner selling his or her primary residence directly to an option
purchaser to liability under G.S. 75‑1.1."
SECTION 3. G.S. 47H‑2 reads as rewritten:
"§ 47H‑2. Minimum contents for contracts for deed; recordation.
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(b) Contents. – A contract for deed contract shall
contain at least all of the following:
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(14) A description of conditions of the
property that includes whether the property, including any structures thereon,
has water, sewer, septic, and electricity service, whether the property is in a
floodplain, whether anyone else has a legal interest in the property, and
whether restrictive covenants prevent building or installing a dwelling. If
restrictive covenants are in place that affect the property, a copy of the
restrictive covenants shall be made available to the purchaser at or before the
execution of the contract.
(14a) A completed residential property disclosure statement that complies with Chapter 47E of the General Statutes, provided that the seller does not choose the option of making "No Representation" as to any characteristic or condition of the property.
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(16) If the property being sold is encumbered
by a deed of trust, mortgage, or other encumbrance evidencing or securing a
monetary obligation which constitutes a lien on the property, and the seller is
not a licensed general contractor within the meaning of Chapter 87 of the
General Statutes, or a licensed manufactured home dealer within the meaning of
Article 9A of Chapter 143 of the General Statutes, a statement of the amount of
the lien, and the amount and due date, if any, of any periodic payments.
…."
SECTION 4. G.S. 47H‑8 reads as rewritten:
"§ 47H‑8. Remedies.
A violation of any provision of this Chapter constitutes
an unfair trade practice under G.S. 75‑1.1. A purchaser may
bring an action for the recovery of damages, to rescind a transaction, as well
as for declaratory or equitable relief, for a violation of this Chapter. The
rights and remedies provided herein are cumulative to, and not a limitation of,
any other rights and remedies provided by law or equity. Nothing in this Chapter
shall be construed to subject an individual homeowner selling his or her
primary residence directly to a buyer to liability under G.S. 75‑1.1."
SECTION 5. G.S. 75‑120 reads as rewritten:
"§ 75‑120. Definitions.
The following definitions shall apply in this Article:
(1) Default. – Whenever a property owner is
more than 60 days delinquent on any loan or debt that is secured by the
property, including real estate taxes.
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(3) Foreclosure rescue transaction. – A transfer of residential real property, including a manufactured home that is permanently attached to the real property, which includes all of the following features:
a. The real property is the principal residence of the transferor.
b. The transferor is in default or legal
proceedings have been initiated to foreclose on the transferor's property.
c. The transferee, an agent of the transferee, or others acting in concert with the transferee make representations that the transfer of the residential property will enable the transferor to prevent, postpone, or reverse the effect of foreclosure and to remain in the residence.
d. The transferor retains an interest in the
property conveyed, including a tenancy interest, an interest under a lease‑purchase
agreement, anlease with option to purchase agreement, or an option
to reacquire the property, or any other legal, equitable, or possessory
interest in the property conveyed.property.
…."
SECTION 6. G.S. 75‑121 reads as rewritten:
"§ 75‑121. Foreclosure rescue transactions prohibited; exceptions; violation.
(a) It is unlawful for a person or entity other than
the transferor to engage in, promise to engage in, arrange, offer, promote,
solicit, assist with, or carry out a foreclosure rescue transaction for
financial gain or with the expectation of financial gain, unless prior to or at
the time of transfer, the transferee pays the transferor at least fifty percent
(50%) of the fair market value of the property as determined by a licensedcertified
appraiser. An appraisal to determine the fair market value of the property must
be performed no more than 90120 days prior to the transfer. The
appraisal shall be delivered to the transferor no more than three days after
the appraisal is performed and no less than seven days prior to the time
the transferor becomes obligated to perform the agreement.transfer of
the property. This section does not apply to exempt transactions.
(b) Every contract to effectuate a foreclosure rescue transaction in which the transferee pays at least 50% of the fair market value of the property, shall be in writing, shall be signed and acknowledged by all parties to it, and shall contain all the terms to which the parties have agreed. The contract shall contain at least all of the following:
(1) The names and addresses of all parties to the contract.
(2) The legal description of the property being transferred.
(3) Any financial obligation of the transferor that will be assumed by the transferee.
(4) The total amount to be paid by the transferee in connection with the transaction.
(5) The fair market value of the property as determined
by a licensed certified appraiser.
(6) A description of the interest in the property retained by the transferor as provided in G.S. 75‑120(3)d.
(7) The terms of the transferor's right to any future possessory or ownership interest in the property."
SECTION 7. This act becomes effective October 1, 2013, and applies to transactions entered into on or after that date.
