SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2101
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2101, as amended, would enact the Kansas
Contract for Deed Act. Under the Act, a seller would be
prohibited from executing a contract for deed with a buyer if
the seller does not hold title to the property. The bill would
require the seller to maintain fee simple title to the property
free from certain encumbrances, and it would establish that
any violation of provisions pertaining to the execution of a
contract for deed would be deemed a deceptive act or
practice under the Kansas Consumer Protection Act.
The bill would require a buyer who fails to cure a default
within a specified time frame to record a release of a
recorded affidavit of equitable interest or contract for deed
and vacate the premises. The bill would also provide the
seller with remedies should the buyer fail to satisfy such
requirements.
Further, the bill would authorize the Kansas Real Estate
Commission (Commission) to issue cease-and-desist orders
on a person the Commission has determined is practicing
without a valid broker’s or salesperson’s license.

Definitions
The bill would define terms applicable to the Act,
including:
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 ● “Contract for deed,” to mean an executory
agreement in which the seller agrees to convey title
to real property to the buyer and the buyer agrees
to pay the purchase price in five or more
subsequent payments, exclusive of a down
payment, while the seller retains title to the
property as security for the buyer’s obligation. The
term would specifically exclude option contracts for
the purchase of real property; and
● “Property,” to mean real property located in Kansas
upon which there is located or will be located a
structure designed principally for occupancy of one
to four families that is or will be occupied by the
buyer as the buyer’s principal place of residence.
The bill would also define the terms “buyer” and “seller”
for this purpose.

Recording of Contract for Deed
The bill would provide that any contract for deed or
affidavit of equitable interest may be recorded by any
interested person in the office of the county register of deeds
where the property is located.

Clearing Title Upon Buyer Default; Seller’s Remedies
The bill would provide that, following the notice of the
intent to forfeit and the opportunity to cure the default as
outlined in the bill, the buyer would have 15 calendar days to:
● Record a release of affidavit of equitable interest or
contract for deed, if such affidavit or contract were
recorded; and
● Vacate the premises under contract, if applicable.

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 If the buyer fails to satisfy the above conditions, the bill
would provide that such buyer would be responsible for the
seller’s reasonable attorney fees, costs, and expenses for the
removal of the affidavit of equitable interest or contract for
deed from the title and eviction of the buyer from the
premises, if applicable.

Seller to Hold Title to the Property; Exceptions
The bill would prohibit a seller from executing a contract
for deed if the seller does not hold fee simple title to the
property, free from any mortgage, lien, or other
encumbrances (liability), subject to certain exceptions
specified in the bill:
● Due to the conduct of the buyer;
● With the agreement of the buyer as a condition of a
loan obtained to make improvements to the
property; or
● By the seller prior to the execution of the contract
for deed if:
○ The seller disclosed the liability to the buyer;
○ The seller continues to make timely payments
on the outstanding liability;
○ The seller disclosed the contract for deed to a
party of interest to the liability; and
○ The seller satisfies and obtains a release of
the liability not later than the date of the final
contract for deed payment by the buyer,
unless the buyer assumes the liability as part
of such contract.
Violations of the specified title liability prohibitions would
be considered a deceptive act and be subject to enforcement
under the Kansas Consumer Protection Act.

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Contract for Deed: Buyer’s Rights
The bill would provide that a buyer’s rights under a
contract for deed would not be forfeited or canceled except as
specified in the bill. However, under the bill, a contract could
provide for forfeiture of buyer’s rights. Additionally, the bill
would contain a statement that the provisions on a buyer’s
rights could not be construed to limit the power of a district
court to require equitable foreclosure proceedings.
A buyer’s rights would not be forfeited until the buyer
has been notified of the intent to forfeit and has been given a
right to cure the default and has not done so within the time
period allowed. A notice of default and intent to forfeit would
be required to:
● Reasonably identify the contract and describe the
property covered by it;
● Specify the terms and conditions of the contract
with which the buyer has not complied; and
● Notify the buyer that the contract will be forfeited
unless the buyer performs the terms and conditions
within the following time periods:
○ 30 days from completed service of notice if
the buyer has paid less than 50 percent of the
purchase price; or
○ 90 days from completed service of notice if
the buyer has paid 50 percent or more of the
purchase price.
The bill would require such notice be served on the
buyer in person, delivered directly to the buyer’s residence, or
delivered by certified or priority mail to the buyer’s residence
with return receipt requested.


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Cease-And-Desist Orders
If the Commission determines a person has practiced
without a valid broker’s or salesperson’s license issued by the
Commission, the Commission may issue a cease-and-desist
order in accordance with the Kansas Administrative
Procedure Act against such unlicensed person or associated
association, corporation, limited liability company, limited
liability partnership, partnership, professional corporation, or
trust.

Background
The bill was introduced by the House Committee on
Financial Institutions and Pensions at the request of
Representative Hoheisel.

House Committee on Financial Institutions and Pensions
In the House Committee hearing on January 29, 2024,
proponent testimony was provided by Representative
Probst, an attorney, a citizen lobbyist, and three private
citizens. The proponents stated that the bill would add
protections to a currently unregulated aspect of the residential
housing market. The citizen lobbyist, formerly a member of
the Judicial Council Advisory Committee, testified that the bill
is the result and recommendation of that committee’s 2020
study. The attorney and the private citizens he represented in
a case of convicted fraud described the misrepresentations
made in a rent-to-own contract and protections the bill would
afford to assist other buyers in similar situations.
Written-only neutral testimony was provided by the
Kansas Judicial Council, which included the report of the
Judicial Council Advisory Committee on 2020 HB 2600 and
noted a discrepancy between the committee recommendation
and HB 2101.

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 No other testimony was provided.
The House Committee amended the bill to insert
additional criteria by which a seller could qualify for an
exemption from the liability prohibition, which would require
that the seller disclose the contract for deed to the liability
interest holder and require that the seller obtain a release of
any outstanding liabilities on the property prior to the buyer’s
final payment.

Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, proponent testimony
was provided by Representative Probst and a representative
of the Kansas Association of Realtors. The proponents stated
the bill would provide reasonable protections from predatory
practices in residential contract for deed transactions in what
is currently an unregulated aspect of the residential housing
market.
Written-only neutral testimony was provided by the
Kansas Judicial Council, which included the report of the
Judicial Council Advisory Committee on 2020 HB 2600.
No other testimony was provided.
The Senate Committee amended the bill to:
● Require a buyer, after failing to cure a default
within the allotted time, to record a release of a
recorded affidavit of equitable interest or contract
for deed and vacate the premises within 15
calendar days;
● Provide remedies for the seller when a buyer
defaults and subsequently fails to record a release
and vacate the premises; and

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 ● Insert provisions contained in Sub. for HB 2598
that would authorize the Commission to issue
cease-and-desist orders on a person practicing
without a valid broker’s or salesperson’s license.
[Note: See the supplemental note on Sub. for HB
2598 for additional information.]
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Judicial Branch
states that enactment of the bill could increase the number of
cases filed in district courts due to the violations of the
Kansas Consumer Protection Act. This would increase the
time spent by district court judicial and nonjudicial personnel
in processing, researching, and hearing cases. The bill could
also result in the collection of docket fees that would be
deposited into the State General Fund. However, a precise
fiscal effect cannot be estimated.
The Office of the Attorney General states that any
additional cases generated from the bill would be absorbed
within existing resources. The Abstracters’ Board of
Examiners states that the bill would not have a fiscal effect.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
The Kansas Association of Counties indicates that
enactment of the bill could have an impact on counties if
current resources are not adequate to handle prosecutions
and court needs. Therefore, a fiscal effect cannot be
determined. The League of Kansas Municipalities states that
the bill would not have a fiscal effect.
Consumer protection; Kansas Contract for Deed Act; contract-for-deed contracts;
property; affidavit of equitable interest; fee simple title; real estate; Real Estate
Commission; cease and desist; Kansas Consumer Protection Act


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Statutes affected:
As Amended by Senate Committee: 58-3065