Bill Summary for S 863 (2021-2022)
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AN ACT TO LIMIT THE AMOUNT OF DUE DILIGENCE FUNDS ALLOWED IN RESIDENTIAL REAL PROPERTY TRANSACTIONS AND TO APPROPRIATE FUNDS TO THE NORTH CAROLINA HOUSING COALITION TO BE USED TO SUPPORT HOMEBUYER EDUCATION SERVICES IN THIS STATE.Intro. by Garrett, Batch, Fitch.
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Enacts new Article 4, Unenforceable Real Estate Transaction Charges, in GS Chapter 22B, consisting of new GS 22B-30, providing as follows. Prohibits a seller of residential real property from requiring, as a condition of accepting an offer to purchase the property, due diligence funds (as defined) in an amount exceeding 1% of the purchase price contained in the offer to purchase. Voids any provision in a contract specifying an amount in excess of this amount. Makes the seller liable for court costs and attorneys' fees in an action to recover due diligence funds specified in a contract provision rendered void and unenforceable under this statute. Effective October 1, 2022.
Appropriates $10 million for 2022-23 from the General Fund to the Office of State Budget and Management to be allocated as a grant to the North Carolina Housing Coalition, Inc., to support homebuyer education. Effective July 1, 2022.