Law limits large investors’ purchases of single-family homes

Covered entities may buy or offer to buy a single-family home only if at least one listed exception applies. A covered entity is an institutional real estate investor or an entity it funds to buy a single-family home. The definition excludes certain nonprofits, lenders, community land trusts, land banks, public housing authorities, and resident-owned cooperatives. Exceptions include homes used as an owner’s main home, certain government-funded homes, tenant-occupied homes, and homes acquired through foreclosure or similar legal processes. A covered entity may also buy a home that is not publicly listed when it makes an offer, or one publicly listed for at least 90 consecutive days immediately before its first offer or acceptance. The rule applies to offers conveyed by a covered entity on or after January 1, 2027.

A covered entity relying on the 90-day listing exception must give the seller a notarized disclosure and send a copy to the Department of Justice. This duty applies when a covered entity makes or accepts an offer under the exception for a home publicly listed for at least 90 consecutive days. The form identifies the buyer as a covered entity subject to the 90-day waiting period. The Department of Justice must post received forms on its website for at least five years. The copy is due within three days after the buyer submits the form to the seller or seller’s agent.

The Attorney General may investigate violations, seek court orders, and impose civil penalties on covered entities. The enforcement provisions cover violations by covered entities of the purchase restrictions or disclosure duties. Penalties may be up to $250,000 for an unlawful purchase or acquisition and up to $10,000 for failing to submit a required form. Money recovered under this section goes to the Department of Justice Protection and Education Revolving Account. The Attorney General may impose a penalty after an investigation finds a violation.