A BILL TO BE ENTITLED
AN ACT Amending the homeowner and homebuyer protection act.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 47G‑1 reads as rewritten:
"§ 47G‑1.  Definitions.
The following definitions apply in this Chapter:…
(4)	Option contract or contract. – An option contract for the purchase of property that includes or is combined with, or is executed in conjunction with, a covered lease agreement. The term does not include a contract which obligates the buyer to purchase the property even though the obligation may be subject to one or more contingencies or unilateral rights to terminate the contract.
…."
SECTION 2.  G.S. 47G‑7 reads as rewritten:
"§ 47G‑7.  Remedies.
An option purchaser may bring an action for the recovery of damages, to void a transaction executed in violation of this Chapter, as well as for declaratory or equitable relief for a violation of this Chapter. The rights and remedies provided herein are cumulative to, and not a limitation of, any other rights and remedies provided by law or equity. Nothing in this Chapter shall be construed to subject an individual homeowner selling his or her primary residence directly to an option purchaser to liability under G.S. 75‑1.1."
SECTION 3.  G.S. 47H‑2 reads as rewritten:
"§ 47H‑2.  Minimum contents for contracts for deed; recordation.
…
(b)	Contents. – A contract for deed shall contain at least all of the following:
…
	
(14a)	A completed residential property disclosure statement that complies with Chapter 47E of the General Statutes, provided that the seller does not choose the option of making "No Representation" as to any characteristic or condition of the property.
…
	 
…."
SECTION 4.  G.S. 47H‑8 reads as rewritten:
"§ 47H‑8.  Remedies.
A purchaser may bring an action for the recovery of damages, to rescind a transaction, as well as for declaratory or equitable relief, for a violation of this Chapter. The rights and remedies provided herein are cumulative to, and not a limitation of, any other rights and remedies provided by law or equity. Nothing in this Chapter shall be construed to subject an individual homeowner selling his or her primary residence directly to a buyer to liability under G.S. 75‑1.1."
SECTION 5.  G.S. 75‑120 reads as rewritten:
"§ 75‑120.  Definitions.
The following definitions shall apply in this Article:
	…
(3)	Foreclosure rescue transaction. – A transfer of residential real property, including a manufactured home that is permanently attached to the real property, which includes all of the following features:
a.	The real property is the principal residence of the transferor.
	c.	The transferee, an agent of the transferee, or others acting in concert with the transferee make representations that the transfer of the residential property will enable the transferor to prevent, postpone, or reverse the effect of foreclosure and to remain in the residence.
d.	The transferor retains a tenancy interest, an interest under a lease with option to purchase agreement, or an option to reacquire the property.
…."
SECTION 6.  G.S. 75‑121 reads as rewritten:
"§ 75‑121.  Foreclosure rescue transactions prohibited; exceptions; violation.
(a)	It is unlawful for a person or entity other than the transferor to engage in, promise to engage in, arrange, offer, promote, solicit, assist with, or carry out a foreclosure rescue transaction for financial gain or with the expectation of financial gain, unless prior to or at the time of transfer, the transferee pays the transferor at least fifty percent (50%) of the fair market value of the property as determined by a licensed appraiser. An appraisal to determine the fair market value of the property must be performed no more than120 days prior to the transfer. The appraisal shall be delivered to the transferor no less than seven days prior to the time the transferor becomes obligated to perform the agreement.
…."
SECTION 7.  This act becomes effective October 1, 2013, and applies to transactions entered into on or after that date.