HB16-1090

HB16-1090 - Excess Foreclosure Proceeds Limit Finder's Fees

Passed/Signed into Law
Concerning The Conditions Under Which A Person May Assist Another For Compensation In Obtaining The Proceeds Of A Foreclosure Sale After All Liens Have Been Satisfied.

The bill limits the premium, sometimes known as a "finder's fee", that a person may charge for offering assistance in recovering the balance of the purchase price of foreclosed property after all liens and claims against the property have been satisfied. Under current law, the public trustee must hold this balance, if any, for the benefit of the former owner of the property for up to 5 years, and then transfer it to the state treasurer for administration under the "Unclaimed Property Act".

The bill reduces the period during which the public trustee must hold these funds from 5 years to 2 years. It also voids any contract for payment of a finder's fee during the first 6 months of the public trustee's custody of the funds and during the first 2 years of the state treasurer's custody of the funds, and caps the finder's fee at 20% of the amount recovered once these periods expire. For amounts that have been in the custody of the state treasurer for 3 years or more, the finder's fee may be up to 30%.

Additional requirements are imposed on the finder's contract, including the requirements that the contract:

  • Is signed by the person to whom the amounts are due;
  • Contains a description of the property and the date of the foreclosure sale;
  • Discloses that the public trustee is obligated to disburse the funds whether or not a finder is used; and
  • Describes the nature of the services that the finder will perform.

House Committees

Latest update: April 15, 2016
04/15/2016 Governor Signed
04/05/2016 Sent to the Governor
04/04/2016 Signed by the Speaker of the House
04/04/2016 Signed by the President of the Senate
03/28/2016 House Considered Senate Amendments - Result was to Laid Over Daily
03/28/2016 House Considered Senate Amendments - Result was to Concur - Repass
03/16/2016 Senate Third Reading Passed - No Amendments
03/15/2016 Senate Second Reading Passed with Amendments - Committee, Floor
03/14/2016 Senate Second Reading Laid Over Daily with Amendments - Committee
03/09/2016 Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole
02/16/2016 Introduced In Senate - Assigned to Business, Labor, & Technology
02/09/2016 House Third Reading Passed - No Amendments
02/08/2016 House Second Reading Passed with Amendments - Committee, Floor
02/03/2016 House Committee on Finance Refer Amended to House Committee of the Whole
01/19/2016 Introduced In House - Assigned to Finance