Oklahoma 2022 Regular Session

Oklahoma House Bill HB2977 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 2977 Page 1 1
	3	+	HB2977 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 2977 By: Olsen of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31		-	~~and~~
	31	+	STATE OF OKLAHOMA
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33		-	Allen of the Senate
	33	+	2nd Session of the 58th Legis lature (2022)
	34	+
	35	+	HOUSE BILL 2977 By: Olsen
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	41	+	AS INTRODUCED
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40	43		An Act relating to property; enacting the Oklahoma
41	44		Road Maintenance Duty Disclosure and Release Act;
42	45		defining terms; requiring seller of real property to
43	46		deliver disclosure of duty to maintain roads
44	47		statement to purchaser in certain circumstances;
45	48		specifying content of disclosure of duty to maintain
46	49		roads statement; specifying time period for
47	50		completing disclosure of duty to maintain roads
48	51		statement; requiring disclosure of duty to maintain
49	52		roads statement be delivered and a release of
50	53		liability form to be completed prior to acceptance of
51	54		offer; requiring Oklahoma Real Estate Commission to
52	55		develop and amend forms and make forms available to
53	56		certain persons; requiring certain written
54	57		acknowledgment and release to accept offer to
55	58		purchase; providing immunity from liability for
56	59		stated duty of road maintenance and inaccurate
57	60		information under certain condi tions; allowing
58	61		certain information to s atisfy requirements of
59	62		disclosure; limiting recovery in civil action to
60	63		certain events; limiting remedy; stating statute of
61	64		limitation; providing for certain c osts and fees;
62	65		limiting effect of noncompliance; stating application
63	66		of act and exempting certain transfers; construing
64	67		act; stating standard for disclosures and
65	68		acknowledgments; providing for codification; a nd
66	69		providing an effective date.
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70	73		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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72		-	ENGR. H. B. NO. 2977 Page 2 1
	75	+	HB2977 HFLR Page 2
	76	+	BOLD FACE denotes Committee Amendments. 1
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97	101		SECTION 1. NEW LAW A new section of law to be codified
98	102		in the Oklahoma Statutes as Section 1110 of Title 60, unless there
99	103		is created a duplication in numbering, reads as follows:
100	104		This act shall be known and may be cited as the "Oklahoma Road
101	105		Maintenance Duty Disclosure and Release Act".
102	106		SECTION 2. NEW LAW A new section of law to be codified
103	107		in the Oklahoma Statutes as Section 1111 of Title 60, unless there
104	108		is created a duplication in numbering, reads as follows:
105	109		As used in this act:
106	110		1. "Contract" means a real estate purchase contract for the
107	111		sale, conveyance or exchange of property, option to purchase
108	112		property, or a lease with an option to pur chase property;
109	113		2. "Disclosure" means a written declaration , based on actual
110	114		knowledge of the seller , regarding a duty held by the property owner
111	115		to maintain roads. A disclosure for purposes of this act is not a
112	116		warranty, implied or express ed, of any kind;
113	117		3. "Disclosure of duty to maintain roads statement" means the
114	118		statement described in subsection A of Section 3 of this act;
115	119		4. "Offer to purchase" means an offer to purchase real property
116	120		made by a purchaser pursuant to a written contract;
117	121		5. "Person" means an individual, corporation, limited liability
118	122		company, partnership, association, trust or other legal entity or
119	123		any combination thereof;
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121		-	ENGR. H. B. NO. 2977 Page 3 1
	125	+	HB2977 HFLR Page 3
	126	+	BOLD FACE denotes Committee Amendments. 1
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146	151		6. "Property" means any type of real property, whether it is
147	152		agricultural, commercial or residential;
148	153		7. "Purchaser" means one or more persons who are attempting to
149	154		acquire a possessory interest in real property;
150	155		8. "Real estate licensee" means a person licensed under the
151	156		Oklahoma Real Estate License Code;
152	157		9. "Release of liability form" means the form described in
153	158		subsection B of Section 3 of this act ;
154	159		10. "Seller" means one or more pe rsons who are attempting to
155	160		transfer a possessory interest in real property and who may or may
156	161		not be represented by a real estate licensee ; and
157	162		11. "Transfer" means a sale, conveyance, exchange or option to
158	163		purchase a possessory interest in real property by written
159	164		instrument in exchange for consideration.
160	165		SECTION 3. NEW LAW A new section of law to be codified
161	166		in the Oklahoma Statutes as Section 1112 of Title 60, unless there
162	167		is created a duplication i n numbering, reads as follows:
163	168		A. A seller of property located in thi s state shall deliver, or
164	169		cause to be delivered, to the purchaser of such property a
165	170		disclosure of duty to maintain roads statement if, and only if, the
166	171		property being sold borders public roads that are not maintained by
167	172		a municipality, county, county comm issioner, or the state but is
168	173		instead the duty of the property owner to maintain. A disclosure of
169	174		duty to maintain roads statement shall be in writing and shall giv e
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171		-	ENGR. H. B. NO. 2977 Page 4 1
	176	+	HB2977 HFLR Page 4
	177	+	BOLD FACE denotes Committee Amendments. 1
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196	202		the street name as well as a description of the location and
197	203		boundaries of the portion of the roads that the property owner must
198	204		maintain.
199	205		The disclosure of duty to maintain roads statement required by
200	206		this section must be completed, signed and dated by the sell er. The
201	207		date of completion on the disclosure of duty to maintain roads
202	208		statement may not be more than one hundred eighty (180) days prior
203	209		to the date of receipt of the disclosure of duty to maintain roads
204	210		statement by the purchaser.
205	211		B. After receiving a disclosure of duty to maintain roads
206	212		statement, a purchaser may, if they wish to co ntinue with the
207	213		purchase of the real property, complete a release of li ability form
208	214		by signing, dating and returning the form to the seller. By
209	215		completing and returning a release of liability form, the purchaser
210	216		acknowledges and accepts the duty of maintaining the roads for the
211	217		property as disclosed by the disclosure of duty to maintain roads
212	218		statement, waiving any rights to hold the seller liable for any road
213	219		maintenance or repair.
214	220		C. The Oklahoma Real Estate Commission shall develop by rule
215	221		the forms for the disclosure of duty to maintain roads statement and
216	222		release of liability form . After development of the initial forms,
217	223		the Oklahoma Real Estate Commission may amend the forms as is
218	224		necessary and appropriate.
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220		-	ENGR. H. B. NO. 2977 Page 5 1
	226	+	HB2977 HFLR Page 5
	227	+	BOLD FACE denotes Committee Amendments. 1
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245	252		Such forms shall be made available upon re quest irrespective of
246	253		whether the person requesting a disclosure of duty to maintain roads
247	254		statement or release of liability form is represented by a real
248	255		estate licensee.
249	256		SECTION 4. NEW LAW A new section of law to be codified
250	257		in the Oklahoma Statutes as Section 1113 of Title 60, unless there
251	258		is created a duplication in numbering, reads as follows:
252	259		A. A seller, when required by this act, should deliver the
253	260		disclosure of duty to maintain roads statement and a release of
254	261		liability form to the purchaser as soon as practicable, but in any
255	262		event it shall be delivered before acceptance of an offer to
256	263		purchase.
257	264		B. If the disclosure of duty to maintain roads statement is
258	265		delivered to the purchaser aft er an offer to purchase has been made,
259	266		the offer to purchase shall be accepted only after the purchaser has
260	267		acknowledged receipt of the disclosure of duty to maintain roads
261	268		statement and confirmed the offer to purchase by returning to the
262	269		seller the release of liability form.
263	270		C. The purchaser shall acknowledge in writing receipt of the
264	271		disclosure of duty to maintain roads statement and any amendments to
265	272		the disclosure of duty to maintain roads statement . The purchaser
266	273		shall sign and date any acknowledgmen t and subsequent release of
267	274		liability form. Such acknowledgment and release of liability form
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269		-	ENGR. H. B. NO. 2977 Page 6 1
	276	+	HB2977 HFLR Page 6
	277	+	BOLD FACE denotes Committee Amendments. 1
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294	302		should accompany the o ffer to purchase the property and shall be
295	303		promptly delivered to the seller.
296	304		SECTION 5. NEW LAW A new section of law to be codified
297	305		in the Oklahoma Statute s as Section 1114 of Title 60, unless there
298	306		is created a duplication in numbering, reads as follows:
299	307		A. The seller shall not be liable for needed road maintenance
300	308		if the existence of the duty to maintain the roads was disclosed in
301	309		the disclosure of duty t o maintain roads statement delivered to the
302	310		purchaser before acceptance of the offer to purchase.
303	311		B. The seller shall not be liable for any erroneous, inaccurate
304	312		or omitted information supplied t o the purchaser in the disclosure
305	313		of duty to maintain roads statement, as required by this act , if:
306	314		1. The error, inaccuracy or omission results from an
307	315		approximation of information by the seller, provided:
308	316		a. accurate information was unknown to the seller at the
309	317		time the disclosure was made,
310	318		b. the approximation was clearly identified as such and
311	319		was reasonable and based on the best information
312	320		available to the seller, and
313	321		c. the approximation was not used to circumvent the
314	322		disclosure requirements of this a ct;
315	323		2. The error, inaccuracy or omission was not within t he actual
316	324		knowledge of the seller; or
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318		-	ENGR. H. B. NO. 2977 Page 7 1
	326	+	HB2977 HFLR Page 7
	327	+	BOLD FACE denotes Committee Amendments. 1
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343	352		3. The disclosure was based on information provided by public
344	353		agencies and the seller reasonably believed the information to be
345	354		correct.
346	355		C. The delivery by a public agency of information concerning
347	356		the duty of road maintenance as required to be disclosed by the
348	357		seller of the property shall satisfy the requirements of this act .
349	358		SECTION 6. NEW LAW A new section of law to be codified
350	359		in the Oklahoma Statutes as Section 1115 of Title 60, unless there
351	360		is created a duplication in numbering, reads as follows:
352	361		A. The purchaser may recover in a civil action only in the
353	362		event of the seller failing to provide the purchaser with a
354	363		disclosure of duty to maintain roads statement prior to acceptance
355		-	of an offer to purchase if, and only if, the seller was required to
	364	+	of an offer to purchase, if, and only if, the seller was required to
356	365		do so by this act and the duty to maintain the roads was actually
357	366		known to the seller prior to the acce ptance of an offer to purchase .
358	367		B. The sole and excl usive civil remedy at common law or
359	368		otherwise for a failure under subsection A of this section by the
360	369		seller or the real estate licensee shall be actual damages,
361	370		including the cost of repairing or maintaining the roads, suffered
362	371		by the purchaser as a resul t of needed road maintenance existing as
363	372		of the date of acceptance by the seller of an offer to purchase and
364	373		shall not include the remedy of exemplary damages.
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366		-	ENGR. H. B. NO. 2977 Page 8 1
	375	+	HB2977 HFLR Page 8
	376	+	BOLD FACE denotes Committee Amendments. 1
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391	401		C. Any action brought under this act shall be commenced within
392	402		two (2) years after the date of transfer of real property subject to
393	403		this act.
394	404		D. In any civil action brought under this act, the prevailing
395	405		party shall be allowed court costs and a reasonable attorney fee to
396	406		be set by the court and to be collected as costs.
397	407		E. A transfer of a possesso ry interest in property subject to
398	408		this act may not be invalidated solely because of the failure of any
399	409		person to comply with this act.
400	410		F. This act applies to, regulates and determines rights,
401	411		duties, obligations and remedies at common law or otherwise of the
402	412		seller, the real estate licensee and the purchaser with respect to
403	413		disclosure of duty of road maintenance and supplants and abrogates
404	414		all common law liability, rights, duties, obligations and remedies
405	415		therefor.
406	416		SECTION 7. NEW LAW A new section of law to be codified
407	417		in the Oklahoma Statutes as Section 1116 of Title 60, unless there
408	418		is created a duplication in numbering, reads as follows:
409	419		This act does not apply to:
410	420		1. Transfers pursuant to court order, including, but not
411	421		limited to, transfers pursuant to a writ of execution, transfers by
412	422		eminent domain and transfers pursuant to an order for partition;
413	423		2. Transfers to a mortgagee by a mortgagor or successor in
414	424		interest who is in default, transfers by any foreclosure sale after
415	425
416		-	ENGR. H. B. NO. 2977 Page 9 1
	426	+	HB2977 HFLR Page 9
	427	+	BOLD FACE denotes Committee Amendments. 1
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441	452		default in an obligation secured by a mortgage, transfers by a
442	453		mortgagee's sale under a power of sale after default in an
443	454		obligation secured by any instrument containing a power of sale, or
444	455		transfers by a mortgagee who has acquired the real property at a
445	456		sale conducted pursuant to a power of sale or a sale pursuant to a
446	457		decree of foreclosure or has acquired the real property by deed in
447	458		lieu of foreclosure;
448	459		3. Transfers by a fiduciary who is not an owner occupant of the
449	460		subject property in the course of the a dministration of a decedent's
450	461		estate, guardianship, conservatorship or trust;
451	462		4. Transfers from one co -owner to one or more other co -owners;
452	463		5. Transfers made to a spouse, or to the person or persons in
453	464		the lineal line of consanguinity of one or more of the owners;
454	465		6. Transfers between spouses resulting from a decree of
455	466		dissolution of marriage or a decree of legal separation or from a
456	467		property settlement agreement incidental to such a decree;
457	468		7. Transfers made pursuant to mergers and from a subsidiary t o
458	469		a parent or the reverse; or
459	470		8. Transfers or exchanges to or from any governmental entity.
460	471		SECTION 8. NEW LAW A new section of law to be codified
461	472		in the Oklahoma Statutes as Section 1117 of Title 60, unless there
462	473		is created a duplication in numbering, reads as follows:
463	474		Disclosures required under this act need not be sworn to,
464	475		verified or acknowledged.
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466		-	ENGR. H. B. NO. 2977 Page 10 1
	477	+	HB2977 HFLR Page 10
	478	+	BOLD FACE denotes Committee Amendments. 1
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491	503		SECTION 9. This act shall become effective November 1, 2022.
492		-	Passed the House of Representatives the 8th day of March, 2022.
493	504
494		-
495		-
496		-
497		-	Presiding Officer of the House
498		-	of Representatives
499		-
500		-
501		-	Passed the Senate the ___ day of __________, 2022.
502		-
503		-
504		-
505		-
506		-	Presiding Officer of the Senate
507		-
508		-
	505	+	COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY - CIVIL, dated
	506	+	03/01/2022 - DO PASS.