HF536 Summary

• Requires multiple sellers (those acting as seller in past 12 months) to deliver a standardized notice titled "Important Information About Contracts for Deed" to prospective purchasers at least five business days before executing a contract for deed on residential property.

• Notice must be affixed to purchase agreements or delivered separately and signed by purchaser; includes information about balloon payments, foreclosure risks, insurance and tax obligations, and instructions for obtaining legal counsel.

• Prospective purchasers may cancel purchase agreements within five business days of receiving notice if contract for deed has not been executed, with full refund of all payments and no penalties.

• Multiple sellers who fail to timely deliver notice are liable for statutory damages of $2,500 (or greater actual damages), attorney fees, and court costs; knowingly failing to deliver notice results in triple damages.

• Exempts transactions where purchaser is represented throughout by a licensed attorney or real estate broker without dual agency; effective August 1, 2013.