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1999 SESSION

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HB 2600 Real estate settlements.

Introduced by: R. Creigh Deeds | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Real estate settlements; disclosure of affiliated business by settlement service providers. Requires any person making a referral to an affiliate settlement service provider to disclose the affiliation in accordance with the federal Real Estate Settlement Procedures Act of 1974 (RESPA), and to provide such disclosure regardless of the amount of the person’s actual ownership interest in the affiliated provider. The disclosure is not required where such ownership is one percent or less of the capital stock of a corporation or entity with a class of securities registered under the Securities Exchange Act of 1934 (14 U.S.C. § 78a et seq.).

SUMMARY AS PASSED HOUSE:

Real estate settlements; disclosure of affiliated business by settlement service providers. Requires any person making a referral to an affiliate settlement service provider to disclose the affiliation in accordance with the federal Real Estate Settlement Procedures Act of 1974 and to provide such disclosure regardless of the amount of the person’s actual ownership interest in the affiliated provider.

SUMMARY AS INTRODUCED:

Real estate settlements; prohibitions against required use of settlement services providers. Prohibits persons referring individuals to affiliated real estate settlement service providers from requiring such individuals to engage the services of the affiliated providers. The bill details conduct involving affiliated persons or entities presumed to violate this prohibition, including withholding a settlement service unless a recommended affiliated real estate settlement provider is used. The bill reiterates potential liability for such conduct under federal law.