HOUSE BILL REPORT

HB 1821

BYRepresentative Nutley

Requiring recording of real estate contracts as condition of seller exercising remedies.

House Committe on Housing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (8)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Armstrong, Barnes, Sanders, Todd, J. Williams and Wineberry.

House Staff:Charlie Gagivan (786-7340)

AS REPORTED BY COMMITTEE ON HOUSING FEBRUARY 4, 1988

BACKGROUND:

The sale of real property is usually made using a mortgage, a deed of trust, or a real estate contract.

When a sale is made using a mortgage or deed of trust, the buyer acquires ownership of the property and the mortgage or deed of trust acts as a lien or security for the repayment of a loan made in conjunction with the sale.  These instruments are nearly always recorded at the time of the sale.

A sale by real estate contract leaves the ownership of the property in the name of the seller.  The buyer does not own the property until the last payment is made on the loan the seller makes to the buyer to purchase the property.  Since the seller does not have to record the real estate contract to protect his or her interest in the property, some real estate contracts are not recorded in a timely manner after the sale occurs.

SUMMARY:

SUBSTITUTE BILL:  All real estate contracts on one to four single family dwellings or units must be recorded.  Remedies currently available in statute are available when the contract has been recorded.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Clarification is made that single family residences include from one to four single family units.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.