Bill > S705

This bill establishes comprehensive regulations for shared equity investors who provide home investments, requiring them to obtain a license and adhere to strict consumer protection standards. The legislation mandates that shared equity investors must provide homeowners with detailed disclosures about the investment, including potential risks, settlement examples under various property value scenarios, and clear information about fees and equity interests. The bill requires a three-business-day rescission period for homeowners, ensures that the homeowner's initial home equity is at least 10 percent, and mandates that property appraisals be conducted by independent third parties. The legislation prohibits shared equity investors from charging early settlement penalties, restricting property use, or requiring affiliated appraisals without consent. The bill also empowers the Commissioner of Financial Services to inspect and evaluate shared equity investors' performance, with the ability to assign performance ratings and potentially deny license renewals. Additionally, the legislation establishes significant penalties for violations, including fines up to $5,000 per violation and potential prohibition from operating in the industry. The bill aims to protect homeowners by creating transparency, preventing predatory practices, and ensuring that shared equity investments are conducted fairly and responsibly.

Business and Industry

https://malegislature.gov/Bills/194/S705