HB 456Executory Contracts

Overview

This bill would establish necessary language for all executory contracts centered upon the sale of real property.  The language is as follows: “THIS IS AN EXECUTORY CONTRACT FOR THE SALE OF REAL PROPERTY. FOR THE DURATION OF THIS CONTRACT THE SELLER REMAINS THE OWNER OF THE PROPERTY. YOUR FAILURE TO COMPLY WITH THE TERMS OF THIS AGREEMENT MAY RESULT IN THE SELLER’S RIGHT TO TAKE POSSESSION OF THE PROPERTY BEFORE YOUR FINAL PAYMENT AND THE CONVEYANCE OF THE DEED” in bold 14pt type.  The bill also defines language to be used by the buyer to back out of the contract within 14 days and the statement required by the seller to take possession of the property if a buyer fails to meet the outlined requirements.