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 Back | 144th General Assembly
House Bill # 413 |
| Primary Sponsor: | Valihura | Additional Sponsor(s): Sen. Adams |
| CoSponsors: | { NONE...} |
| Introduced on : | 05/07/2008 | |
| Long Title: | AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO SELLER FINANCED SALES OF RESIDENTIAL REAL ESTATE AND CONDITIONAL SALES AGREEMENTS INVOLVING REAL ESTATE. |
| Synopsis: | Currently, there are in Delaware an unknown but significant number of conditional sales contracts for residential real estate in which unsophisticated buyers and/or sellers enter into an agreement in which the seller holds the deed until such time as the last payment is made on the contract. These contracts may last 20 or 30 years, in which time any number of events could affect the stability of the relationship. Further, buyers tend to believe that they are gaining equity in the property or that they are “paying a mortgage”, however, there is no protection of a mortgage instrument and any equity in the property may only be established by an action in the Court of Chancery. Meanwhile, the seller may proceed to seek summary possession of the property through the landlord/tenant code for a breach of the agreement. Due to a lack of statutory or case law guidance, these cases are treated inconsistently in the Justice of the Peace Court.
This Bill provides for consistent treatment of conditional sales agreements involving residential real estate by providing that they must go to final settlement no longer than a year from the original execution of the contract, protecting the rights of all involved in the transaction. In the event that the parties to a conditional sales agreement involving real estate do not wish to go to settlement, the agreement must contain certain provisions regarding default, redemption of the property, and conversion of the agreement into a landlord/tenant relationship upon default. It gives jurisdiction to the Justice of the Peace Court to resolve such converted contracts of sale and give an equitable accounting of the past relationship.
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| Committee Reports: |
House Committee Report 06/11/08 F=1 M=6 U=0---->
Senate Committee report 06/24/08 F=0 M=5 U=0-----> |
| Voting Reports: |
House vote: () Passed 6/18/08 3:16:24 PM------->
Senate vote: () Passed 6/25/08 4:45:35 PM-------> |
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Actions History:
| Jul 03, 2008 - Signed by Governor
Jun 25, 2008 - Passed by Senate. Votes: Passed 20 YES 0 NO 0 NOT VOTING 1 ABSENT 0 VACANT
Jun 24, 2008 - Reported Out of Committee (SMALL BUSINESS) in Senate with 5 On Its Merits
Jun 19, 2008 - Assigned to Small Business Committee in Senate
Jun 18, 2008 - Passed by House of Representatives. Votes: Passed 40 YES 0 NO 0 NOT VOTING 1 ABSENT 0 VACANT
Jun 11, 2008 - Reported Out of Committee (HOUSING & COMMUNITY AFFAIRS) in House with 1 Favorable, 6 On Its Merits
May 07, 2008 - Introduced and Assigned to Housing & Community Affairs Committee in House
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