SENATE BILL REPORT

SB 6479

BYSenators Nelson, Thorsness, Newhouse and McCaslin

Changing provisions relating to real estate contract forfeitures.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 17, 1990

Senate Staff:Ben Barnes (786-7465)

AS OF JANUARY 16, 1990

BACKGROUND:

The Real Estate Contract Forfeiture Act was enacted in 1985 and provides the only way by which a seller may forfeit a real estate contract.  In the event of a purchaser's default, attorneys' fees may be recovered to the extent prescribed in the contract.  Some concern has arisen regarding situations where people have sold property using a common preprinted form which provides for the recovery of attorneys' fees only if the seller chooses to bring suit.  Therefore, if the default is cured prior to initiating a lawsuit, the seller is unable to recover the costs expended in preparing to commence the forfeiture proceeding.

SUMMARY:

The definition of "curing a default" is amended to include any costs and attorneys' fees incurred by the seller in preparing to commence forfeiture proceedings under the Real Estate Contract Forfeiture Act.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:July 1, 1990