This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0313 - Requires detailed disclosure form to be used in sales of residential real estate
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1439-01
BILL NO.: SB 313
SUBJECT: Property, Real & Personal: Licenses - Professional
TYPE: Original
DATE: January 29, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development - Division of Professional Registration (DPR) and the Department of Labor and Industrial Relations (DOL) assume the proposed legislation would have no fiscal impact on their agencies.
Officials from the Office of State Courts Administrator (CTS) assume that because of the complexity of the disclosure statement, there may be a large number of violations. However, since the new owner would have to prove that the seller knowingly provided false information, CTS would not anticipate a significant number of cases would be filed, and then only for major falsifications.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
The proposed legislation would require a seller of residential real property to furnish a seller's disclosure report completed with honesty in fact. The proposal would require the seller to disclose on the report any problems with and repairs due to water seepage, mechanical systems, appliances, roof, water supply, sewage system, structure, land, pests and hazardous substances.
DESCRIPTION (continued)
The proposal would make a person civilly liable to the purchaser for the costs of repairing undisclosed defects to the property. An owner would not be civilly liable for an error or omission in a report if the owner has no knowledge of that error or omission or if the error or omission was based on information provided by a public agency. The provisions of this bill would not apply to the first sale of a new home, property acquired by foreclosure, estate transfers or divorce transfers.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
This proposal would not affect Total State Revenues.
SOURCES OF INFORMATION
Department of Economic Development - Division of Professional Registration
Department of Labor and Industrial Relations
Office of State Courts Administrator
Jeanne Jarrett, CPA
Director
January 29, 1999