H.B. No. 368 Summary

• Requires vendors to pay off all liens on property before executing a land installment contract and prohibits vendors from holding or placing mortgages on the property during the contract.

• Mandates vendors obtain building code compliance inspection certificates and property appraisals before contract execution, and make all necessary repairs to ensure properties are in fit and habitable condition.

• Caps interest rates on land installment contracts at no more than two percent above the treasury bill rate for loans of the same maturity on the contract date.

• Requires land installment contracts to include specific disclosures in 12-point type stating vendor responsibilities for taxes, insurance, and repairs, and notifying vendees of their right to sue for vendor non-compliance.

• Establishes vendee remedies including minimum damages of two percent of principal amount, return of all moneys paid, equity in property, and court costs plus attorney fees when vendor violates contract provisions.