Vote Smart's Synopsis:

Vote to pass a bill that increases protections for land installment contracts.

Highlights:

• Includes the following as Land Installment Contracts (Sec 2.33 (2A&B)): 

• A bond for deed and a contract for the sale of real estate that meets the criteria set forth in this subsection; and 

• Option contracts for the purchase of real property, an agreement for the occupancy of residential real estate in which the occupant is required to make an initial payment in excess of 4 times the periodic monthly payments required to occupy the premises and any agreement in which a person is induced to occupy a property as a primary residence by a promise or offer to grant ownership of the property to the person at a future date. 

• Specifies that purchase and sale agreements involving a separate transaction in which the parties agree that the purchase price will be paid in a single installment, either through a cash sale or when a 3rd party or the vendor agrees to finance the transaction are not included in the definition of land installment contract (Sec 2.33) 

• Requires that a copy of a land installment contract be recorded with the county’s registry of deeds within twenty days from the day the contract was signed for the contract to be valid and enforceable by the landowner (Sec. 5-2).

• Specifies that parties in a rent-to-own or option-to-buy agreement can agree that in the event of any default by the purchaser, the vendor will return the purchaser (Sec 6.33) 

• Any initial payment made by the purchaser in excess of 4 times the periodic monthly payment;

• The value of any improvements to the real estate made by the purchaser necessary to bring the real estate into compliance with Title 14, sections 6021 and 6021-A;

• The value of any other improvements made to the real estate by the purchaser

• The value of any other improvements made to the real estate by the purchaser in excess of the amount of one monthly payment;

• Property taxes paid by the purchaser;

• Payments of homeowner's insurance paid by the purchaser; and

• Reimbursements by the purchaser to the vendor of homeowner's insurance, property taxes or improvements set forth in paragraphs B and C.

• Specifies that a vendor of such a contract may not evict the purchaser until they have paid back the dues to the purchaser enumerated above (Sec. 6-4).

• Authorizes purchasers to file for damages in the event that a vendor violates the aforementioned provisions (Sec. 6-6).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases protections for land installment contracts.

Highlights:

• Includes the following as Land Installment Contracts (Sec 2.33 (2A&B)): 

• A bond for deed and a contract for the sale of real estate that meets the criteria set forth in this subsection; and 

• Option contracts for the purchase of real property, an agreement for the occupancy of residential real estate in which the occupant is required to make an initial payment in excess of 4 times the periodic monthly payments required to occupy the premises and any agreement in which a person is induced to occupy a property as a primary residence by a promise or offer to grant ownership of the property to the person at a future date. 

• Specifies that purchase and sale agreements involving a separate transaction in which the parties agree that the purchase price will be paid in a single installment, either through a cash sale or when a 3rd party or the vendor agrees to finance the transaction are not included in the definition of land installment contract (Sec 2.33) 

• Requires that a copy of a land installment contract be recorded with the county’s registry of deeds within twenty days from the day the contract was signed for the contract to be valid and enforceable by the landowner (Sec. 5-2).

• Specifies that parties in a rent-to-own or option-to-buy agreement can agree that in the event of any default by the purchaser, the vendor will return the purchaser (Sec 6.33) 

• Any initial payment made by the purchaser in excess of 4 times the periodic monthly payment;

• The value of any improvements to the real estate made by the purchaser necessary to bring the real estate into compliance with Title 14, sections 6021 and 6021-A;

• The value of any other improvements made to the real estate by the purchaser

• The value of any other improvements made to the real estate by the purchaser in excess of the amount of one monthly payment;

• Property taxes paid by the purchaser;

• Payments of homeowner's insurance paid by the purchaser; and

• Reimbursements by the purchaser to the vendor of homeowner's insurance, property taxes or improvements set forth in paragraphs B and C.

• Specifies that a vendor of such a contract may not evict the purchaser until they have paid back the dues to the purchaser enumerated above (Sec. 6-4).

• Authorizes purchasers to file for damages in the event that a vendor violates the aforementioned provisions (Sec. 6-6).

Full Bill Text