25 LC 60 0081
House Bill 403
By: Representatives Bell of the 75
th
, Olaleye of the 59
th
, Davis of the 87
th
, Scott of the 76
th
,
Frye of the 122
nd
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 44 of the Official Code of Georgia Annotated, relating to property, so as to
1
enhance protections for homeowners and tenants by revising or repealing certain provisions2
inhibiting housing stability; to repeal certain provisions allowing for liens on condominiums3
and lots in relation to collection of property association fees and assessments; to make4
conforming changes related to certain liens; to void certain conveyances of single-family5
dwellings, including town homes, to real estate investment trusts; to repeal the prohibition6
on local governments regulating the amount of rent to be charged for privately owned,7
single-family or multiple-unit residential rental property; to prohibit certain nonjudicial8
foreclosures on mortgages on real estate; to provide for definitions; to provide for related9
matters; to provide for an effective date and applicability; to repeal conflicting laws; and for10
other purposes.11
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12
SECTION 1.13
Title 44 of the Official Code of Georgia Annotated, relating to property, is amended by14
revising subsections (e) and (f) of Code Section 44-3-80, relating to allocation of and liability15
for common expenses and how assessments are made relative to condominiums, as follows:16
H. B. 403
- 1 - 25 LC 60 0081
"(e) Unless otherwise provided in the condominium instruments and except as provided
17
in subsection (f) of this Code section, the grantee in a conveyance of a condominium unit18
shall be jointly and severally liable with the grantor thereof for all unpaid assessments19
against the latter up to the time of the conveyance without prejudice to the grantee's right20
to recover from the grantor the amounts paid by the grantee therefor; provided, however,21
that, if the grantor or grantee shall request a statement from the association as provided in22
Code Section 44-3-109, such grantee and his or her
successors, successors-in-title, and23
assigns shall not be liable for nor shall the condominium unit conveyed be subject to a lien24
for any unpaid assessments against such grantor in excess of any amount set forth in the25
statement.26
(f) In the event that the holder of a first priority mortgage or a secondary purchase money27
mortgage of record, provided that neither the grantee nor any successor grantee on the28
secondary purchase money mortgage is the seller of the unit, or any other person acquires29
title to any condominium unit as a result of foreclosure of any such mortgage, such holder30
or other person and successors, successors-in-title, and assigns shall not be liable for nor31
shall the condominium unit be subject to a lien for any assessment under this Code section32
or under any condominium instrument chargeable to the condominium unit on account of33
any period prior to the acquisition of title; provided, however, that the unpaid share of an34
assessment or assessments shall be deemed to be common expenses collectable from all35
of the unit owners, including such holder or other person and successors,36
successors-in-title, and assigns."37
SECTION 2.38
Said title is further amended by revising Code Section 44-3-109, relating to lien for39
assessments, personal obligation of unit owner, notice and foreclosure, lapse, right to40
statement of assessments, and effect of failure to furnish statement relative to condominiums,41
as follows:42
H. B. 403
- 2 - 25 LC 60 0081
"44-3-109.
43
(a) All sums lawfully assessed by the association against any unit owner or condominium44
unit, whether for the share of the common expenses pertaining to that condominium unit,45
for fines, or otherwise, and all reasonable charges made to any unit owner or condominium46
unit for materials furnished or services rendered by the association at the owner's request47
to or on behalf of the unit owner or condominium unit, shall, from the time the same48
become due and payable, be the personal obligation of the unit owner and constitute a lien49
in favor of the association on the condominium unit prior and superior to all other liens
50
whatsoever except.51
(a.1) The superiority of liens on a condominium unit shall be in the following order:52
(1) Liens for ad valorem taxes on the condominium unit;53
(2) The lien of any first priority mortgage covering the unit and the lien of any mortgage54
recorded prior to the recording of the declaration;55
(3) The lessor's lien provided for in Code Section 44-3-86; and56
(4) The lien of any secondary purchase money mortgage covering the unit, provided that57
neither the grantee nor any successor grantee on the mortgage is the seller of the unit.58
The recording of the declaration pursuant to this article shall constitute record notice of the59
existence of the lien, and no further recordation of any claim of lien for assessments shall60
be required.61
(b) To the extent that the condominium instruments provide, the personal obligation of the62
unit owner and the lien for assessments shall also include:63
(1) A late or delinquency charge not in excess of the greater of $10.00 or 10 percent of64
the amount of each assessment or installment thereof not paid when due;65
(2) At a rate not in excess of 10 percent per annum, interest on each assessment or66
installment thereof and any delinquency or late charge pertaining thereto from the date67
the same was first due and payable;68
H. B. 403
- 3 - 25 LC 60 0081
(3) The costs of collection, including court costs, the expenses of sale, any expenses
69
required for the protection and preservation of the unit, and reasonable attorney's fees70
actually incurred; and71
(4) The fair rental value of the condominium unit from the time of the institution of an72
action until the sale of the condominium at foreclosure or until the judgment rendered in73
the action is otherwise satisfied.74
(c) Not less than 30 days after notice is sent by certified mail or statutory overnight
75
delivery, return receipt requested, to the unit owner both at the address of the unit and at76
any other address or addresses which the unit owner may have designated to the association77
in writing, the lien may be foreclosed by the association by an action, judgment, and78
foreclosure in the same manner as other liens for the improvement of real property, subject79
to superior liens or encumbrances, but any such court order for judicial foreclosure shall80
not affect the rights of holders of superior liens or encumbrances to exercise any rights or81
powers afforded to them under their security instruments. The notice provided for in this82
subsection shall specify the amount of the assessments then due and payable together with83
authorized late charges and the rate of interest accruing thereon. No foreclosure action84
against a lien arising out of this subsection shall be permitted unless the amount of the lien85
is at least $2,000.00. Unless prohibited by the condominium instruments, the association86
shall have the power to bid on the a unit at any foreclosure sale and to acquire, hold, lease,87
encumber, and convey the same. The lien for assessments shall lapse and be of no further88
effect, as to assessments or installments thereof, together with late charges and interest89
applicable thereto, four years after the assessment or installment first became due and90
payable.91
(d) Any unit owner, mortgagee of a unit, person having executed a contract for the92
purchase of a condominium unit, or lender considering the loan of funds to be secured by93
a condominium unit shall be entitled upon request to a statement from the association or94
its management agent setting forth the amount of assessments past due and unpaid together95
H. B. 403
- 4 - 25 LC 60 0081
with late charges and interest applicable thereto against that condominium unit. Such
96
request shall be in writing, shall be delivered to the registered office of the association, and97
shall state an address to which the statement is to be directed. Failure on the part of the
98
association to mail or otherwise furnish such statement regarding amounts due and payable99
at the expiration of such five-day period with respect to the condominium unit involved to100
such address as may be specified in the written request therefor within five business days101
from the receipt of such request shall cause the lien for assessments created by this Code102
section to be extinguished and of no further force or effect as to the title or interest acquired103
by the purchaser or lender, if any, as the case may be, and their respective successors and104
assigns, in the transaction contemplated in connection with such request. The information105
specified in such statement shall be binding upon the association and upon every unit106
owner. Payment of a fee not exceeding $10.00 may be required as a prerequisite to the107
issuance of such a statement if the condominium instruments so provided.108
(e) Nothing in this Code section shall be construed to prohibit actions maintainable109
pursuant to Code Section 44-3-76 to recover sums for which subsection (a) of this Code110
section creates a lien."111
SECTION 3.112
Said title is further amended by revising subsections (e), (f), and (h) of Code113
Section 44-3-117, relating to application to subcondominiums, creation of subcondominium,114
subassociation, insurance, effect of certain liens, eminent domain, description of certain115
units, and assessments, as follows:116
"(e) All sums lawfully assessed by a master association against a subassociation shall have117
the same effect as provided in subsection (a) of Code Section 44-3-109.118
The recording of the declaration for a subcondominium pursuant to this article shall119
constitute record notice of the existence of the lien, and no further recordation of any claim120
of lien for assessments shall be required.121
H. B. 403
- 5 - 25 LC 60 0081
(f) In the event any lien becomes effective against a subunit as provided in subsection (e)122
of this Code section, the subassociation may remove that lien from the subunits by:123
(1) The payment of the amount attributable to the subunits, or124
(2) Bonding of the amount assessed against the subassociation125
or any subunit owner may remove that lien from his or her subunit by the payment of the126
amount attributable to his or her subunit. The amount shall be computed by reference to127
the liability for common expenses pertaining to that condominium unit pursuant to128
subsection (c) of Code Section 44-3-80. Subsequent to the payment, discharge, or other129
satisfaction of such amount, the subunit owner of that subunit shall be entitled to have that130
lien released as to his or her subunit in accordance with applicable provisions of law, and131
notwithstanding anything to the contrary in Code Sections 44-3-80 and 44-3-109, the132
master association shall not assess or have a valid lien against that subunit for any portion133
of the common expenses incurred by the master association in connection with that lien. 134
Reserved."135
"(h) Any subunit owner, mortgagee of a subunit, person having executed a contract for the136
purchase of a subunit, or lender considering the loan of funds to be secured by a subunit137
shall be entitled upon request to a statement from the subassociation or its management138
agent setting forth the amount of assessments past due and unpaid together with late139
charges and interest applicable owed by the subassociation to the master association. If the140
subassociation or its management agent states an amount less than the amount actually141
owed by the subassociation to the master association, the lien created by Code Section142
44-3-109 for any amounts in excess of the stated amount shall be subordinate to the lien143
of any first priority mortgage covering the subunit."144
H. B. 403
- 6 - 25 LC 60 0081
SECTION 4.
145
Said title is further amended by revising Code Section 44-3-206, relating to foreclosure by146
owner's association, procedure, and effect of sale relative to time-share projects and147
programs, as follows:148
"44-3-206.149
(a) An owners' association may foreclose its lien upon a time-share estate in accordance150
with subsection (c) of Code Section 44-3-109 or
with Code Section 44-3-207 or may151
foreclose its lien under a power of sale that such owners' association shall have under this152
Code section in order to sell a time-share estate for the purpose of paying any or all unpaid153
assessments and other charges owed by the owner of such time-share estate.154
(b)(1) In order for an owners' association to foreclose its lien upon a time-share estate155
under a power of sale, a notice of sale shall be:156
(A) Accomplished in writing sent by registered or certified mail or statutory overnight157
delivery, return receipt requested, to the property address of the owner most recently158
provided to the owners' association no later than 30 days prior to the date of the159
proposed sale and shall be deemed given on the official postmark day or the day on160
which it is received for delivery by a commercial delivery firm;161
(B) Provided in writing to any lien holder, sent by registered or certified mail or162
statutory overnight delivery, return receipt requested; and163
(C) Provided by advertising the time, place, and terms of said sale in a newspaper in164
which sheriff's advertisements are published in the county where the development is165
located, once a week during the four calendar weeks immediately preceding the166
calendar week of the date of such sale.167
(2) Any sale pursuant to this subsection shall occur on a legal sale day within the legal168
hours of sale at the legal place of sale in the county where the development is located.169
(c) A sale undertaken as authorized by this Code section shall divest the owner of all right,170
title, interest, and equity that such owner has in or to the time-share estate and shall vest171
H. B. 403
- 7 - 25 LC 60 0081
fee simple title to the time-share estate in the purchaser or purchasers at said sale. The
172
proceeds of said sale shall be applied first in accordance with the lien priorities set forth in173
paragraphs (1) through (4) of subsection (a)
(a.1) of Code Section 44-3-109, after which174
any remaining proceeds shall be applied to the payment in full of such unpaid assessments175
and other charges and next to the payment of all expenses actually incurred by the owners'176
association in connection with said proceedings, including attorneys' fees, and any177
remaining proceeds shall be paid to the owner. The owners' association may bid at said178
sale and purchase the time-share estate.179
(d) For the purpose of carrying out and effectuating the power of sale authorized by this180
Code section, the owners' association shall be constituted the true and lawful181
attorney-in-fact of such owner to sell such time-share estate, as provided in this Code182
section, and convey the same to the purchaser or purchasers at said sale in as full and ample183
a manner as such owner could do in person. The power and agency hereby granted are184
coupled with an interest and are irrevocable by death or otherwise."185
SECTION 5.186
Said title is further amended by revising subparagraph (a)(1)(A), paragraph (2) of187
subsection (c), paragraph (1) of subsection (d), and paragraphs (2), (4), and (5) of188
subsection (e) of Code Section 44-3-207, relating to time-share estates, trustee foreclosures,189
and requirements, as follows:190
"(a)(1)(A) In order to sell a time-share estate for the purpose of paying any or all191
unpaid assessments and other charges owed by the owner of such time-share estate, an192
owners' association, or its managing agent on behalf of the owner's association, may193
foreclose its lien for all assessments and other charges assessed by the owners'194
association upon a time-share estate pursuant to the time-share instrument or195
subsections (a) and (b) of Code Section 44-3-109, in accordance with:196
H. B. 403
- 8 - 25 LC 60 0081
(i) The judicial foreclosure procedure of subsection (c) of Code Section 44-3-109 or197
44-3-232, as applicable;198
(ii)(i) The trustee foreclosure procedure under this Code section; or199
(iii)(ii) The nonjudicial foreclosure procedure under Code Section 44-3-206."200
"(2) In any trustee foreclosure proceeding, the trustee shall first deliver to the owner of201
the time-share estate a written notice of default sent by registered or certified mail or202
statutory overnight delivery, return receipt requested, to the owner's property address that203
was most recently provided to the owners' association or mortgagee and no later than 30204
days prior to the initiation of the trustee foreclosure procedure. The notice of default205
shall be deemed delivered on the official postmark day or the day on which it is received206
for delivery by a commercial delivery firm. The notice of default shall state:207
(A) The intent of the owners' association or mortgagee to commence foreclosing on the208
assessment lien or mortgage, after the end of the 30 day period, using the trustee209
foreclosure procedure set forth in this Code section;210
(B) The address and telephone number of the trustee and owners' association, its211
managing agent, or the mortgagee, as applicable;212
(C) The legal description of the time-share estate;213
(D) The nature of the default;214
(E) The outstanding amounts secured by the assessment lien or mortgage and a per215
diem amount to account for further accrual of such amounts; and216
(F) The method by which the owner of the time-share estate may cure the default; and217
(G) The right of the owner of the time-share estate to object to the use of the trustee218
foreclosure procedure and require the owners' association or mortgagee to proceed219
thereafter only with a judicial foreclosure action as to that specified default by220
delivering a written objection to the trustee within 20 days after the delivery date of the221
notice."222
H. B. 403
- 9 - 25 LC 60 0081
"(d)(1) In order for a trustee to sell an encumbered time-share estate foreclosed under this
223
Code section:224
(A) The trustee must have provided the written notice of default as required under225
paragraph (2) of subsection (c) of this Code section, and a period of at least 30 calendar226
days must have elapsed after such notice of default is deemed delivered;227
(B) The trustee must not have received from the owner of the time-share estate a
228
written objection to the use of the trustee foreclosure procedure prior to the end of the229
20 day period provided for in the notice of default and the time-share estate was not230
redeemed under paragraph (3) of subsection (c) of this Code section Reserved;231
(C) The trustee must have delivered a notice of sale meeting the requirements of232
paragraph (4) of this subsection to the owner of the time-share estate, by registered or233
certified mail or statutory overnight delivery, return receipt requested, to the property234
address of the owner of the time-share estate most recently provided to the owners'235
association or mortgagee no later than 30 days prior to the date of the proposed sale and236
the notice of sale shall be deemed delivered on the official postmark day or the day on237
which it is received for delivery by a commercial delivery firm;238
(D) The trustee must have delivered a copy of the notice of sale to any junior lien239
holder of record by registered or certified mail or statutory overnight delivery, return240
receipt requested, no later than 30 days prior to the date of the proposed sale. The241
notice of sale shall be deemed delivered on the official postmark day or the day on242
which it is received for delivery by a commercial delivery firm;243
(E) The trustee must have recorded a copy of the notice of sale in the official records244
of the county in which the time-share estate is located not less than 30 days prior to the245
date of the proposed sale; and246
(F) The trustee must have published a notice in the legal organ for the county in which247
the time-share estate is located, or if there is no newspaper designated as such, then in248
the nearest newspaper having the largest general circulation in such county, once a249
H. B. 403
- 10 - 25 LC 60 0081
week during the four calendar weeks immediately preceding the calendar week of the
250
date of such sale. The last of such notices shall be published at least seven calendar251
days prior to the date of the sale."252
"(2) Within ten calendar days after a sale, absent the prior filing and service on the253
trustee of a judicial action to enjoin issuance of the trustee foreclosure deed to the254
time-share estate, the trustee shall issue a trustee foreclosure deed to the purchaser and255
deliver the trustee foreclosure deed to the clerk of the superior court for recording in the256
official records of the county in which the time-share estate is located. The trustee257
foreclosure deed shall include the name and address of the trustee, the name and address258
of the purchaser or purchasers, the name and address of the former owner of the259
time-share estate, and a legal description of the time-share estate. The trustee foreclosure260
deed shall contain no warranties of title from the trustee. A certificate of compliance261
confirming that the notice and publication requirements of this Code section were met,262
that the default was not cured, that the trustee did not timely receive any written objection
263
to the trustee foreclosure procedure from the owner of the time-share estate, and that the264
time-share estate was not timely redeemed shall be executed by the trustee and attached265
as an exhibit to the trustee foreclosure deed."266
"(4) The proceeds of the trustee foreclosure sale shall be applied first in accordance with267
the lien priorities set forth in paragraphs (1) through (4) of subsection (a) (a.1) of Code268
Section 44-3-109, after which any remaining proceeds shall be applied to the payment in269
full of such unpaid assessments and other charges or mortgage obligations, as applicable,270
and next to the payment of all expenses actually incurred by the owners' association in271
connection with the trustee foreclosure proceedings, including attorneys' fees. Any272
remaining proceeds shall be paid to the prior owner of the time-share estate. The owners'273
association or mortgagee, as applicable, may bid at the sale and purchase the time-share274
estate and receive a credit up to the amount of unpaid assessments and other charges or275
mortgage obligations, as applicable, and all expenses actually incurred by the owners'276
H. B. 403
- 11 - 25 LC 60 0081
association or mortgagee, as applicable, in connection with the trustee foreclosure
277
proceedings, including attorney's fees.278
(5) A trustee foreclosure sale releases the prior owner of the time-share estate of liability279
for any and all amounts secured by the assessment
a lien or a mortgage, as applicable. 280
The owners' association or mortgagee, as applicable, has no right to any deficiency281
judgment against the prior owner of the time-share estate after the completion of the282
trustee foreclosure sale of the time-share estate under this Code section."283
SECTION 6.284
Said title is further amended by revising subsections (c) and (d) of Code Section 44-3-225,285
relating to assessment of expenses, exemption from liability, and liability for unpaid286
assessments relative to property owners' associations, as follows:287
"(c) Unless otherwise provided in the instrument and except as provided in subsection (d)288
of this Code section, the grantee in a conveyance of a lot shall be jointly and severally289
liable with the grantor thereof for all unpaid assessments against the latter up to the time290
of the conveyance without prejudice to the grantee's right to recover from the grantor the291
amounts paid by the grantee; provided, however, that if the grantor or grantee shall request292
a statement from the association as provided in subsection (d) of Code Section 44-3-232,293
such grantee and his or her successors, successors-in-title, and assigns shall not be liable294
for nor shall the property owners' association lot conveyed be subject to a lien for any295
unpaid assessments against such grantor in excess of any amount set forth in the statement.296
(d) In the event that the holder of a first priority mortgage or secondary purchase money297
mortgage of record, provided that neither the grantee nor any successor grantee on the298
secondary purchase money mortgage is the seller of the lot, or in the event that any other299
person acquires title to any lot as a result of foreclosure of any such mortgage, such holder300
or other person and his or her successors, successors-in-title, and assigns shall not be liable301
for nor shall the lot be subject to any lien for assessments under this Code section or under302
H. B. 403
- 12 - 25 LC 60 0081
any instrument chargeable to the lot on account of any period prior to the acquisition of
303
title; provided, however, that the unpaid share of an assessment or assessments shall be304
deemed to be a common expense collectable from all of the lot owners, including such305
holder or other person and his or her successors, successors-in-title, and assigns."306
SECTION 7.307
Said title is further amended by revising Code Section 44-3-232, relating to assessments308
against lot owners as constituting lien in favor of association, additional charges against lot309
owners, procedure for foreclosing lien, and obligation to provide statement of amounts due310
relating to property owners' associations, as follows:311
"44-3-232.312
(a) All sums lawfully assessed by the association against any lot owner or property owners'313
association lot, whether for the share of the common expenses pertaining to that lot, fines,314
or otherwise, and all reasonable charges made to any lot owner or lot for materials315
furnished or services rendered by the association at the owner's request to or on behalf of316
the lot owner or lot, shall, from the time the sums became due and payable, be the personal317
obligation of the lot owner and constitute a lien in favor of the association on the lot prior
318
and superior to all other liens whatsoever except.319
(a.1) The superiority of liens on a lot owner shall be in the following order:320
(1) Liens for ad valorem taxes on the lot;321
(2) The lien of any first priority mortgage covering the lot and the lien of any mortgage322
recorded prior to the recording of the declaration; or323
(3) The lien of any secondary purchase money mortgage covering the lot, provided that324
neither the grantee nor any successor grantee on the mortgage is the seller of the lot.325
The recording of the declaration pursuant to this article shall constitute record notice of the326
existence of the lien, and no further recordation of any claim of lien for assessments shall327
be required.328
H. B. 403
- 13 - 25 LC 60 0081
(b) To the extent that the instrument provides, the personal obligation of the lot owner and329
the lien for assessments shall also include:330
(1) A late or delinquency charge not in excess of the greater of $10.00 or 10 percent of331
the amount of each assessment or installment thereof not paid when due;332
(2) At a rate not in excess of 10 percent per annum, interest on each assessment or333
installment thereof and any delinquency or late charge pertaining thereto from the date334
the same was first due and payable;335
(3) The costs of collection, including court costs, the expenses required for the protection336
and preservation of the lot, and reasonable attorney's fees actually incurred; and337
(4) The fair rental value of the lot from the time of the institution of an action until the338
sale of the lot at foreclosure or until judgment rendered in the action is otherwise339
satisfied.340
(c) Not less than 30 days after notice is sent by certified mail or statutory overnight341
delivery, return receipt requested, to the lot owner both at the address of the lot and at any342
other address or addresses which the lot owner may have designated to the association in343
writing, the lien may be foreclosed by the association by an action, judgment, and court344
order for foreclosure in the same manner as other liens for the improvement of real345
property, subject to superior liens or encumbrances, but any such court order for judicial346
foreclosure shall not affect the rights of holders of superior liens or encumbrances to347
exercise any rights or powers afforded to them under their security instruments. The notice348
provided for in this subsection shall specify the amount of the assessments then due and349
payable together with authorized late charges and the rate of interest accruing thereon. No350
foreclosure action against a lien arising out of this subsection shall be permitted unless the351
amount of the lien is at least $2,000.00. Unless prohibited by the instrument, the352
association shall have the power to bid on the a lot at any foreclosure sale and to acquire,353
hold, lease, encumber, and convey the same. The lien for assessments shall lapse and be354
of no further effect, as to assessments or installments thereof, together with late charges355
H. B. 403
- 14 - 25 LC 60 0081
and interest applicable thereto, four years after the assessment or installment first became356
due and payable.357
(d) Any lot owner, mortgagee of a lot, person having executed a contract for the purchase358
of a lot, or lender considering the loan of funds to be secured by a lot shall be entitled upon359
request to a statement from the association or its management agent setting forth the360
amount of assessments past due and unpaid together with late charges and interest361
applicable thereto against that lot. Such request shall be in writing, shall be delivered to362
the registered office of the association, and shall state an address to which the statement is363
to be directed. Failure on the part of the association, within five business days from the364
receipt of such request, to mail or otherwise furnish such statement regarding amounts due365
and payable at the expiration of such five-day period with respect to the lot involved to366
such address as may be specified in the written request therefor shall cause the lien for367
assessments created by this Code section to be extinguished and of no further force or368
effect as to the title or interest acquired by the purchaser or lender, if any, as the case may369
be, and their respective successors and assigns, in the transaction contemplated in370
connection with such request. The information specified in such statement shall be binding371
upon the association and upon every lot owner. Payment of a fee not exceeding $10.00372
may be required as a prerequisite to the issuance of such a statement if the instrument so373
provides.374
(e) Nothing in this Code section shall be construed to prohibit actions maintainable375
pursuant to Code Section 44-3-223 to recover sums for which subsection (a) of this Code376
section creates a lien."377
SECTION 8.378
Said title is further amended in Article 2 of Chapter 5, relating to conveyances, by adding a379
new Code section to read as follows:380
H. B. 403
- 15 - 25 LC 60 0081
"44-5-49.381
(a) As used in this Code section, the term:382
(1) 'Real estate investment trust' means an entity in which property is held and managed383
for the benefit and profit of any person who may become a shareholder.384
(2) 'Single-family dwelling' includes town homes.385
(b) A deed, security deed, bill of sale to secure debt, or any other conveyance of a386
single-family dwelling or interest in a single-family dwelling to a real estate investment387
trust shall be void if such real estate investment trust holds a number of rental single-family388
dwellings worth a combined total of at least $30 million or at least 12,000 rental units of389
single-family dwellings in the State of Georgia."390
SECTION 9.391
Said title is further amended in Article 1 of Chapter 7, relating to landlord and tenant in392
general, by repealing Code Section 44-7-19, relating to restrictions on rent regulation by393
local governments, and designating said Code section as reserved.394
SECTION 10.395
Said title is further amended in Part 1 of Article 7 of Chapter 14, relating to foreclosure in396
general, by adding a new subsection to Code Section 44-14-162, relating to sales made on397
foreclosure under power of sale, manner of advertisement and conduct necessary for validity,398
and filing, to read as follows:399
"(c) No sale of real estate under powers contained in mortgages, deeds, or other lien400
contracts shall be valid against a debtor who is:401
(1) Sixty-five years of age or older; or402
(2) A ward, as such term is defined in Code Section 29-1-1."403
H. B. 403
- 16 - 25 LC 60 0081
SECTION 11.
404
Said title is further amended by revising Code Section 44-14-162.1, relating to "debtor"405
defined, as follows:406
"44-14-162.1.407
As used in Code Sections 44-14-162 and
44-14-162.2 through 44-14-162.4, the term408
'debtor' means the grantor of the mortgage, security deed, or other lien contract. In the409
event the property encumbered by the mortgage, security deed, or lien contract has been410
transferred or conveyed by the original debtor, the term 'debtor' such term shall mean the411
current owner of the property encumbered by the debt, if the identity of such owner has412
been made known to and acknowledged by the secured creditor prior to the time the413
secured creditor is required to give notice pursuant to Code Section 44-14-162.2."414
SECTION 12.415
(a) This Act shall become effective upon its approval by the Governor or upon its becoming416
law without such approval.417
(b) Section 8 of this Act shall apply to any conveyance of a single-family dwelling or418
interest in a single-family dwelling made on or after such date.419
(c) Sections 10 and 11 of this Act shall apply to mortgages, deeds, or other lien contracts420
entered into on or after the effective date of this Act and to any renewals, modifications, or421
extensions of such agreements entered into on or after such date.422
SECTION 13.423
All laws and parts of laws in conflict with this Act are repealed.424
H. B. 403
- 17 -