Bill > HB39

This bill requires a settlement agent, who is the person or entity responsible for handling the closing of a real estate transaction, to inform the buyer of residential property about two important rights. First, the settlement agent must notify the buyer about the availability of owner's title insurance, which protects the buyer against certain title defects. Second, and more significantly, the settlement agent must inform the buyer of their right to remove a prohibited restrictive covenant, which is a clause in a property deed that limits how the property can be used, if that covenant is found during the title search and is prohibited by law.