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NC S420

Bill

Official Source

Status

Introduced

3/29/2023

Primary Sponsor

Sydney Batch

Click for details

Origin

Senate

2023-2024 Session

AI Summary

  • Limits due diligence funds required by residential real property sellers to a maximum of 1% of the purchase price, with any contract provisions exceeding this amount declared void and unenforceable.

  • Defines due diligence funds as nonrefundable payments made directly to a seller upon offer acceptance in exchange for the opportunity to investigate the property within an agreed timeframe.

  • Allows sellers who charge excessive due diligence funds to be held liable for court costs and reasonable attorneys' fees in recovery actions brought by offerors.

  • Appropriates $10,000,000 in nonrecurring funds for fiscal year 2023-2024 to the North Carolina Housing Coalition, Inc. to support homebuyer education services statewide.

  • Due diligence limitations take effect October 1, 2023, for offers accepted on or after that date; funding appropriation takes effect July 1, 2023.

Legislative Description

Homebuyer Fairness & Protection Act

Appropriations; Budget & Management Office; Budgeting; Commerce; Consumer Protection; Corporations

Last Action

Re-ref to Appropriations/Base Budget. If fav, re-ref to Rules and Operations of the Senate

4/5/2023

Committee Referrals

Appropriations/Base Budget4/5/2023
Rules and Operations of the Senate3/30/2023

Full Bill Text

No bill text available