This bill is an overkill, it basically looks like some folks were upset about us doing business.
Well, sort of. Yes, this bill is an overkill. Why it came about is because a few “investors” (using that term lightly here) decided it would be a good idea to increase their profits by NOT paying the mortgage on their Sub2 deals. Of course, that meant that they eventually got foreclosed, but it was the sellers that got the worst of the deal, not the crooked investors.
Charlotte in particular has had a great number of these type of “investors” in it’s area. Complaints got the NC AG interested in the problem and voila, you have Bill 725 in the works. So, no, it was NOT because someone was upset because “we” (again a looseknit term) were doing business, but rather HOW “we” were doing business.
b]After talking to a couple of attorneys their is some loopholes in this document.[/b]
Well, I agree with Cash here. The 2nd draft is tighter than the 1st. If you see loopholes, I’m curious as to what exactly they are. Primarily, this bill deals with Sub2 transactions, but it will affect ALL investors. Investors that L/O their properties will no longer be allowed to have a nonrefundable option fee under the terms of this bill. If that is the case, then what is the benefit of the investor to offer a L/O at all? Especially following the guidelines of this bill.
Whether it makes sense to you or not, Troy, the sad fact is, if this bill passes, then the world of RE investing in NC will change. You will either have to change with it, or have tons of $$$ and attorneys available to fight the NC AG.
No, William, even if the bill passes, it does not mean that you have to move to another state to invest in RE (though that’ll mean more deals for me). It simply means that there is another law that you have to follow, especially if you focus is on Sub2 deals.
The sad truth is that all the laws necessary to stop scammers is already on the books, if they will just enforce them. As with these current laws, the scammers will find a way to still scam people.