23 LC 49 1256
H. B. 669
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House Bill 669
By: Representative Smith of the 18
th
A BILL TO BE ENTITLED
AN ACT
To amend Title 10 of the Official Code of Georgia Annotated, relating to commerce and
1
trade, so as to provide for future real estate listing right purchase contracts; to provide for2
definitions; to provide for a short title; to provide for contract requirements; to provide for3
prohibitions; to provide for required disclosures, terms, and conditions; to provide for4
cancellation; to provide for construction; to provide for assignment and recording of such5
contracts; to require and provide for registration of purchasing companies with the Secretary6
of State; to authorize the Secretary of State to adopt rules and regulations; to provide for7
legislative intent; to provide for an effective date and applicability; to provide for related8
matters; to repeal conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
It is the intent of the General Assembly that to promote consumer protections in connection12
with transactions and agreements related to the purchase of future real estate listing rights13
from consumers, this Act shall establish that such transactions be subject to state regulation14
and set forth requirements regarding disclosure, company registration, limitations, violations,15
and other matters.16 23 LC 49 1256
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SECTION 2.
17
Title 10 of the Official Code of Georgia Annotated, relating to commerce and trade, is18
amended by adding a new chapter to read as follows:19
"CHAPTER 6C
20
10-6C-1.21
This chapter shall be known and may be cited as the "Listing Rights Purchase Act."22
10-6C-2.23
As used in this chapter, the term:24
(1) 'Consumer' means a natural person who has a pending legal interest in real property25
that is the subject of a future listing right purchase contract and who resides or is26
domiciled in this state.27
(2) 'Contract purchase price' means the amount of money paid to a consumer as28
consideration for entering into a future listing right purchase contract.29
(3) 'Future listing right purchase contract' means a contractual right to obligate a30
consumer to enter into a real estate listing agreement with a particular individual or entity31
relating to the future sale of a residential home, townhouse, or condominium.32
(4) 'Purchase date' means the date on which the contract purchase price is transferred to33
the consumer by the company either by personal delivery or via wire, ACH or other34
electronic means, or mailed by insured, certified, or registered United States mail.35
(5) 'Purchasing company' or 'company' means a person or entity that enters into a future36
listing right purchase contract.37
(6) 'Real estate listing agreement' means an agreement to list real estate for sale.38 23 LC 49 1256
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10-6C-3.39
All future listing right purchase contracts shall meet the following requirements:40
(1) All blanks in the contract shall be completely filled in when it is presented to the41
consumer for signature;42
(2) The contract shall contain, in at least 12 point bold font, a right of rescission,43
allowing the consumer to cancel the contract without penalty or further obligation if,44
within five business days after the funding date, the consumer either:45
(A) Returns to the company the full amount of the disbursed funds by delivering the46
company's uncashed check to the company's office in person; or47
(B) Mails, by insured, certified, or registered United States mail, to the address48
specified in the contract, a notice of cancellation and includes in such mailing a return49
of the full amount of disbursed funds in the form of the company's uncashed check or50
a personal check or certified check or money order;51
(3) The contract shall contain the initials of the consumer on each page;52
(4) The contract shall contain a statement that there are no fees or charges to be paid by53
the consumer other than those referenced in the disclosure forms provided for in Code54
Section 10-6C-5;55
(5) The contract shall allow for the cancellation of the contract within a period of 90 days56
from the death of the consumer by such consumer's heirs, provided that they mail, by57
insured, certified, or registered United States mail, to the address specified in the contract,58
a notice of cancellation and include in such mailing a return of the full amount of59
disbursed funds in the form of the company's uncashed check or a registered or certified60
check or money order;61
(6) The contract shall set forth how all charges, including any applicable fees, are62
incurred or accrued; and63
(7) If the consumer does not speak English, the contract shall be in the language spoken64
by the consumer.65 23 LC 49 1256
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10-6C-4.66
(a) Purchasing companies shall be prohibited from:67
(1) Intentionally advertising materially false information regarding its products or68
services; and69
(2) Contracting for any right to establish the listing or sale price for a property owned by70
the consumer, which right to make such determinations shall remain solely with the71
consumer.72
(b) No future listing right purchase contract shall have a term greater than 30 years from73
the purchase date.74
10-6C-5.75
(a) All future listing right purchase contracts shall contain the disclosures specified in this76
Code section, which shall constitute material terms of the contract. Unless otherwise77
specified, the disclosures shall be typed in at least 12 point bold font in the contract as78
follows:79
(1) On the front page of the contract, under an appropriate heading, the contract shall80
contain language specifying:81
(A) The purchase price to be paid to the consumer by the purchasing company; and82
(B) Any amounts the consumer will be required to pay under the terms of the future83
listing right purchase contract;84
(2) The body of the contract shall contain the following language:85
'Consumer's right to cancellation: you may cancel this contract without penalty or86
further obligation within five (5) business days after the purchase date if you either:87
1. Return to the purchasing company the full amount of the purchase price by88
delivering the company's uncashed check to the company's office in person; or89
2. Mail, by insured, certified, or registered United States mail, to the company at the90
address specified in the contract, a notice of cancellation and include in such mailing91 23 LC 49 1256
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a return of the full amount of the purchase price in the form of the company's92
uncashed check or a registered or certified check or money order.';93
(3) The contract shall state that the purchasing company shall have no right to compel94
a consumer to list, or to decide when or if a consumer should list, his or her home for95
sale;96
(4) Located immediately above the place on the contract where the consumer's signature97
is required, in 12 point bold font with a box around it, the contract shall include the98
following notice:99
'Do not sign this contract before you read it completely. Do not sign this contract if it100
contains any blank spaces. You are entitled to a completely filled-in copy of the101
contract before you sign this contract. You should obtain the advice of an102
attorney.'; and103
(5) The contract shall state that a copy of the executed contract shall be delivered to the104
consumer within seven business days from the date the consumer signs it.105
10-6C-6.106
(a) If a court of competent jurisdiction determines that a purchasing company has willfully107
committed a deceptive and abusive violation of this chapter with regard to a future listing108
right purchase contract or if a purchasing company fails to register under this chapter, the109
agreement shall be null and void.110
(b) Nothing in this chapter shall be construed to cause any future listing right purchase111
contract conforming to this chapter to be deemed a loan or to be subject to any provisions112
of law governing loans. A future listing right purchase contract that complies with this113
chapter is not subject to any statutory or regulatory provisions governing loans or114
investment contracts. To the extent that this chapter conflicts with any other law, this115
chapter supersedes any other law for the purposes of regulating future listing right purchase116
contracts and purchasing companies in the State of Georgia.117 23 LC 49 1256
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(c) Nothing in this chapter shall be construed to restrict the exercise of the powers or the118
performance of the duties of the Attorney General or the Secretary of State, which he or119
she is authorized to exercise or perform by law.120
10-6C-7.121
(a) A future listing right purchase contract is assignable by the deferred listing company.122
(b) A future listing right purchase contract may be recorded on the property to which it123
relates and shall be perfected by recording in the same manner that an easement, mortgage,124
or other interest in real property is recorded. All recorded documents shall take priority by125
normal operation of law. Notwithstanding the forgoing, any recorded future listing right126
purchase contract shall be subordinate to a financing, refinancing, or home equity line of127
credit the consumer seeks subsequent to the effective date of the future listing right128
purchase contract.129
10-6C-8.130
(a) Unless a purchasing company has first registered with the Secretary of State pursuant131
to this chapter, the company may not enter into a future listing right purchase contract in132
this state.133
(b) An applicant's registration shall be filed in the manner prescribed by the Secretary of134
State and shall contain all information determined necessary by the Secretary of State,135
including, but not limited to, the name of the company, its owners and principal operators,136
the company's domicile, and, if the company is not domiciled in the State of Georgia, the137
designation of a registered agent. The initial application must be accompanied by payment138
of a $7,500.00 fee. A renewal registration must include payment of a $5,000.00 fee.139
Registrations shall be renewed every two years and expire on September 30.140
(c) An applicant shall also, at the time of filing such application, file with the Secretary of141
State, if so required, a bond satisfactory to the Secretary of State in an amount not to142 23 LC 49 1256
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exceed $50,000.00. In lieu of the bond, at the option of the registrant, the registrant may143
post an irrevocable letter of credit. The terms of the bond shall run concurrent with the144
period of time during which the registration will be in effect. The bond shall provide that145
the registrant faithfully conform to and abide by the provisions of this chapter and to all146
rules and regulations lawfully made by the Secretary of State under this chapter and shall147
pay to any such person or persons any and all amounts of money that may become due or148
owing to the state or to such person or persons from the registrant under and by virtue of149
this chapter during the period for which the bond is given.150
(d) Notwithstanding the prior approval requirement of subsection (a) of this Code section,151
a purchasing company that registered with the Secretary of State between the effective date152
of this chapter and the date the Secretary of State made applications available to the public,153
whichever is later, and 180 days thereafter, may engage in future listing right purchase154
contracts while the company's registration is pending approval with the Secretary of State.155
All future listing right purchase contracts entered into prior to the effective date of this156
chapter shall not be subject to the provisions of this chapter.157
(e) No purchasing company may use any form of future listing right purchase contract158
unless it has been filed with the Secretary of State in accordance with the filing procedures159
set forth by the Secretary of State.160
(f) The Secretary of State shall be authorized to adopt rules and regulations to implement161
the provisions of this Code section as needed."162
SECTION 3.163
This Act shall become effective on the 180th day after it has been signed by the Governor164
or becomes law without such approval; provided, however, that it shall not apply to or in any165
way affect or invalidate any future listing right purchase contract entered into prior to the166
effective date of this Act.167 23 LC 49 1256
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SECTION 4.
168
All laws and parts of laws in conflict with this Act are repealed.169