HB 16-1090 Summary

• Prohibits agreements to recover foreclosure overbids (excess sale proceeds) held by public trustees, making such agreements unenforceable and classifying violations as misdemeanors punishable by up to six months in jail and $10,000 fine.

• Allows compensation agreements for overbids only after they are transferred to the state administrator as unclaimed property, with a two-year waiting period before such agreements become enforceable.

• Limits finder's fees to 20% of overbids if agreements are entered 2-3 years after transfer, or 30% if entered more than three years after transfer.

• Requires all compensation agreements to be written and signed by the property owner, describing the property, sale date, and services to be provided.

• Exempts overbids under $1,000 from fee restrictions and allows owners to challenge agreements based on excessive or unjust consideration at any time.