Senate Bill 677 Summary

• Creates the "Contract for Deed Act" establishing 23 new sections regulating executory contracts for residential property purchases, with protections for purchasers including required disclosures, default procedures, and title transfer requirements.

• Requires sellers to provide purchasers at least 10 days before contract execution with property ownership documentation, title encumbrances, condition disclosures, tax/assessment information, insurance details, and financial terms including purchase price, interest rate, late charges, and confirmation of no prepayment penalties.

• Establishes a 30-day cure period after default notice before seller can enforce rescission or forfeiture; requires written notice by certified mail in 14-point type; prevents forfeiture if purchaser has paid 30% or more of the amount due or made 48+ monthly payments, instead allowing seller only to sell property through trustee at public auction.

• Grants purchasers rights including 14-day cancellation period without penalty, annual account statements from seller, ability to convert interest to recorded legal title after paying 15% of purchase price, and cancellation rights if property is not properly subdivided per state and local law.

• Prohibits late fees exceeding 5% of monthly payment, prepayment penalties, and seller retention of option fees exceeding $1,500; establishes seller liability for liquidated damages and attorney's fees for violations; requires all contracts be in writing and recorded with disclosure statements.