Home ownership interests would get clearer terms and easier transfers

Managing entities would have to disclose that buyers are purchasing an ownership interest in the entity, not the home itself. This applies when someone buys an interest in an entity that owns a single-family home, duplex, triplex, or fourplex for a residential arrangement. The act would take effect 60 days after passage, if passed; the bill is still in progress.

Agreements could not require covered disputes to be heard outside state or federal courts. This applies to the purchase agreement and other agreements or rules for a covered residential arrangement or entity interest; timeshare plans are excluded. The restriction applies to agreements governing the residential arrangement or ownership interest. The act would take effect 60 days after passage, if passed; the bill is still in progress.

Managing entities could not restrict transfers in ways that would violate fair housing law, and owners could transfer their interests without the manager’s approval or a transfer fee. These rules cover interests in entities that own a single-family home, duplex, triplex, or fourplex for a residential arrangement; timeshare plans are excluded. The fair housing rule bars actions that would violate state fair housing law if the interest were real property, including restricting transfers, imposing requirements to keep an interest, or refusing an interest to an otherwise qualified person. A violation of this section would count as a deceptive trade practice. The act would take effect 60 days after passage, if passed; the bill is still in progress.