The proposed legislation, General Assembly Raised Bill No. 256, aims to regulate the purchase of residential properties by private equity entities by instituting a mandatory waiting period. Effective October 1, 2026, the bill defines a "private equity entity" and specifies that such entities cannot purchase or offer to purchase single-family or two-family residences unless these properties have been listed for sale to the general public for at least seventy-five days. The waiting period resets if the seller changes the asking price, requiring the property to be listed for an additional seventy-five days at the new price. Additionally, private equity entities must provide written notice to sellers confirming their status and compliance with the waiting period before finalizing any purchase.

The bill also establishes penalties for violations, allowing for civil damages up to $250,000 and enabling the Attorney General to pursue legal action against non-compliant private equity entities. This legislation seeks to protect the residential housing market by ensuring that private equity entities do not quickly acquire properties, thereby promoting fair access for individual buyers. The bill does not include any deletions from current law, as it introduces new provisions to address the specific issue of private equity purchases in the residential real estate market.