This bill amends the existing laws regarding land sales and the handling of deposits by defining "deposits" specifically as earnest money related to purchase and sales agreements for subdivided lands. The new legal language clarifies that deposits do not include funds for change orders, upgrades, or additional payments to the seller. Furthermore, it allows the Consumer Protection and Antitrust Bureau of the Department of Justice to authorize the preclosing use of a portion of these deposits for customizations, upgrades, change orders, or similar items, under terms that the bureau may impose.

Additionally, the bill modifies the escrow requirements for deposits in land sales and condominium transactions. It stipulates that deposits must be held in escrow until closing, but allows for exceptions where the Consumer Protection Bureau can permit the preclosing use of these funds. The bill does not allocate funding for the potential increase in administrative costs associated with the additional oversight required by the Consumer Protection Bureau, which may necessitate hiring additional staff to manage the expected increase in applications for preclosing fund usage.

Statutes affected:
Introduced: 356-A:1, 356-B:3
As Amended by the Senate: 356-A:1, 356-B:3, 356-B:57