Developer Subdivision Reservation Deposits
| Type | Bill |
|---|---|
| Session | 2024 Regular Session |
| Subjects |
Concerning earnest money deposits received after the real estate commission has approved a developer's subdivision registration, and, in connection therewith, allowing the use of developer subdivision earnest money deposits by accredited investors.
Bill Summary:
Before transferring or negotiating to transfer any subdivision or part of a subdivision, a developer is required to apply for registration with the real estate commission (commission). Current law requires that, with permission from the commission, any reservation fees that a developer receives from prospective purchasers while the developer's registration application is pending must be held in trust by a third party and be fully refundable.
If the subdivision is a time share estate, the act requires that, after the commission has approved a developer's registration application, any earnest money received by the developer from a prospective purchaser must be held in trust by an independent third party. The act creates an exception to this requirement for earnest money deposits received from an accredited investor. A developer may use funds from an accredited investor's deposit for development purposes only if the purchase contract or other written disclosure clearly sets forth:
- To whom the funds will be delivered;
- When the delivery will occur;
- How the funds will be used; and
- Any restrictions on the use of the funds.
EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)
Related Documents & Information
| Date | Version | Documents |
|---|---|---|
| 02/16/2024 | PA1 |
| Activity | Vote | Documents |
|---|---|---|
| Refer House Bill 24-1094 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. | The motion passed on a vote of 7-0. | Vote summary |
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.001 | The motion passed without objection. | Vote summary |
| Refer House Bill 24-1094, as amended, to the Committee of the Whole. | The motion passed on a vote of 11-0. | Vote summary |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 04/17/2024 | Third Reading | BILL |
31
AYE
0
NO
4
OTHER
|
Vote record |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 02/20/2024 | Third Reading | BILL |
52
AYE
5
NO
8
OTHER
|
Vote record |
| Date | Amendment Number | Committee/ Floor Hearing | Status | Documents |
|---|---|---|---|---|
| 02/15/2024 | L.001 | HOU Business Affairs & Labor | Passed [*] |
| Date | Location | Action |
|---|---|---|
| 05/28/2024 | Governor | Governor Signed |
| 05/15/2024 | Governor | Sent to the Governor |
| 05/15/2024 | Senate | Signed by the President of the Senate |
| 05/15/2024 | House | Signed by the Speaker of the House |
| 04/17/2024 | Senate | Senate Third Reading Passed - No Amendments |
| 04/16/2024 | Senate | Senate Second Reading Special Order - Passed - No Amendments |
| 04/11/2024 | Senate | Senate Committee on Local Government & Housing Refer Unamended - Consent Calendar to Senate Committee of the Whole |
| 02/23/2024 | Senate | Introduced In Senate - Assigned to Local Government & Housing |
| 02/20/2024 | House | House Third Reading Passed - No Amendments |
| 02/16/2024 | House | House Second Reading Special Order - Passed with Amendments - Committee |
| 02/15/2024 | House | House Committee on Business Affairs & Labor Refer Amended to House Committee of the Whole |
| 01/24/2024 | House | Introduced In House - Assigned to Business Affairs & Labor |
Prime Sponsor
Sponsor
| Effective Date | Chapter # | Title | Documents |
|---|---|---|---|
| 08/07/2024 | 263 | Developer Subdivision Reservation Deposits |