HF3692 Bill Summary

• Requires vendors of residential real property contracts for deed to deliver a recordable copy to the purchaser at execution and record the contract within four months, effective August 1, 2024.

• Establishes new Chapter 559A requiring investor sellers of residential real property to provide detailed disclosures including balloon payment amounts, property acquisition price, essential contract terms, general educational information, and amortization schedules at least 10 calendar days before contract execution.

• Prohibits investor sellers from terminating contracts for deed based on certain transfers (death transfers, spousal transfers, trust transfers) and prohibits termination if the vendor fails to record the contract as required.

• Increases attorney fee requirements for contract for deed defaults from $250-$500 to $1,000 for contracts executed on or after August 1, 2024, and requires 90-day notice for investor seller terminations.

• Provides purchasers a right to cancel purchase agreements within 10 calendar days of receiving disclosures and creates civil remedies for violations including rescission, damages up to $5,000, and attorney fees; prohibits "churning" (repeated contract terminations on same property).