SB 555 Summary

• Establishes the "Contract for Deed Act" regulating executory contracts for residential real property, applying to contracts for deed and lease-option agreements used as purchaser's residence.

• Requires sellers to provide purchasers with written disclosures before signing, including property condition notices, title encumbrances, insurance information, delinquent taxes, and financing terms.

• Mandates a 14-day rescission period allowing purchasers to cancel contracts for any reason and requires sellers to return all payments within 10 days of cancellation notice.

• Prohibits sellers from enforcing rescission or forfeiture if purchaser has paid 30% or more of contract amount or equivalent of 48 monthly payments; instead requires trustee sale through public auction process.

• Imposes seller obligations including recording contracts within 30 days, providing annual accounting statements by January 31, transferring legal title within 30 days of final payment (with liquidated damages of $250-$500/day for delays), and maintaining fee simple title free from liens throughout contract term.