Bill Summary for S 400 (2013-2014)

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Summary date: 

Mar 21 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 400 (Public) Filed Thursday, March 21, 2013
Intro. by Allran.

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Bill summary

Identical to H 203, filed 3/4/13.

Amends GS 47G-1 to make clarifying changes and technical corrections to the following definitions as they apply in GS Chapter 47G (Option to Purchase Contracts Executed With Lease Agreements): (1) covered lease agreement, (2) option contract or contract, and (3) option fee.

Amends GS 47G-7 and GS 47H-8 to delete the provision that a violation of any provision of Chapter 47G constitutes an unfair and deceptive trade practice under GS 75-1.1.

Amends GS 47H-2 to add that the minimum content for a deed contract must also contain a completed residential property disclosure statement as provided in GS Chapter 47E. Deletes two specified requirements as delineated in current GS 47H-2.

Current law provides that a seller whose title is not held in fee simple but is encumbered by any obligation that constitutes a lien on the property may execute a contract for deed only if the underlying mortgage or encumbrance is in the seller's name. Amends GS 47H-6 (Title requirements) to remove as a condition for the sale of such encumbered property that the lien be attached only to the property sold to the purchaser under the contract for deed. Makes organizational changes.

Amends GS 75-120 to define default as meaning whenever a notice of default is filed in the county where the property is located on the loan or debt that is secured by the property, including real estate taxes (was, defined as whenever a property is more than 60 days delinquent of the loan or debt secured by the property).

Amends GS 75-121, which allows an exception to the prohibition against foreclosure rescue transactions, to delete language that required the appraisal for purposes of the exception to be delivered to the person transferring the property no more than three days after the appraisal and no less than seven days prior to the transfer of the property. Also deletes language that this section does not apply to exempt transactions.

Effective October 1, 2013, and applies to transactions entered on or after that date.