Real Property - Land Installment Contracts - Requirements and Vendor Duties and Limitations
The bill modifies existing statutes by improving disclosure requirements and vendor responsibilities within land installment contracts. By mandating that vendors furnish a title search report and officially acknowledging contract signatures, the bill benefits consumers by providing clearer terms and minimizing the risks associated with obscure property liens and title disputes. The reduction of the payment threshold, allowing purchasers to demand a grant of deed upon paying 20% of the cash price, empowers buyers with greater rights and accessibility to property ownership.
House Bill 1108 focuses on regulations regarding land installment contracts, aiming to enhance protections for purchasers involved in these agreements. The bill stipulates that signatures on land installment contracts must be acknowledged and includes the date of signing. Additionally, vendors are required to provide purchasers with the results of a title search for the property before the purchaser signs the contract, ensuring buyers are informed of any encumbrances or issues prior to committing to the purchase.
Despite the protective measures, there may be contention regarding how these changes affect the market for land installment contracts. Vendors might argue that the additional requirements could hinder sales and complicate the transaction process, especially the potential increased costs associated with conducting title searches. Critics of the bill could express concerns about the overall impact on the availability and affordability of alternative financing options for purchasing property, which could disproportionately affect lower-income individuals seeking home ownership.