SB 311

Abstract

Real property; duty to disclose ownership interest and lis pendens. Provides that a real estate licensee has an affirmative duty, upon having substantive discussions about specific real property, to disclose in writing to the purchaser, seller, lessor, or lessee of the property if he, any member of his family, his firm, any member of his firm, or any entity in which he has an ownership interest has or will have an ownership interest as a party to the transaction and must also disclose in writing that he is a licensee. The bill requires that an owner of a residential dwelling unit who has actual knowledge of a lis pendens filed against the dwelling unit must provide to a prospective purchaser a written disclosure of such fact on a form provided by the Real Estate Board on its website. This bill is identical to HB 281.

Real property; title insurance and duty to disclose ownership interest and lis pendens. Provides that a real estatelicensee has an affirmative duty, upon having substantive discussionsabout specific real property, to disclose in writing to the purchaser,seller, lessor, or lessee if he, any member of his family, his firm,any member of his firm, or any entity in which he has an ownershipinterest has or will have an ownership interest to the other partiesto the transaction. The bill requires a settlement agent, in connectionwith any transaction involving the purchase or sale of an interest in residential real property, to obtain from the purchaser a statementin writing that he has been notified by the settlement agent thatthe purchaser may wish to obtain owner's title insurance coverageincluding affirmative mechanics' lien coverage, if available, andof the general nature of such insurance coverage in accordance withthe standards of the American Land Title Association, and that thepurchaser does or does not desire such coverage or desires coveragenot consistent with the standards of the American Land Title Association.The bill requires such written notification to substantially complywith language provided in the bill. The bill requires that an ownerof residential dwelling unit who has actual knowledge of a lis pendensfiled against the dwelling unit to provide to a prospective purchasera written disclosure of such fact to the purchaser on a form providedby the Real Estate Board on its website.