NC H654

Modifies definition of "covered lease agreement" to clarify that rental payments must be applied toward the purchase price of the property in lease-purchase transactions.

Amends option fee provisions to specify that option payments applied at closing do not constitute equity and do not create equitable redemption rights.

Increases maximum late fee on contracts for deed from 4% to 5% of past-due payments, with late fees only applicable to payments more than 15 days overdue.

Replaces detailed property condition disclosures in contracts for deed with requirement to provide a completed residential property disclosure statement under Chapter 47E.

Changes foreclosure rescue transaction definition to trigger protections when a notice of default is filed (rather than when owner is 60+ days delinquent) and clarifies that lease-purchase agreements qualify as protected interests.

Exempts individual homeowners selling their primary residences directly from liability under unfair trade practice laws in both lease-purchase and contract for deed transactions.

Effective October 1, 2011 for transactions entered on or after that date.