POST-CLOSING TENANT AGREEMENT H.B. 5384 - 5386:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
House Bills 5384 through 5386 (as reported without amendment)
Sponsor: Representative John R. Roth (H.B. 5384)
Representative Denise Mentzer (H.B. 5385)
Representative Kelly Breen (H.B. 5386)
Senate Committee: Housing and Human Services
CONTENT
House Bill 5384 would amend the Truth in Renting Act to modify the definition of "residential premises" to specify that the term would not include a residence occupied by the seller on a temporary basis after the sale of that residence.
House Bill 5385 would amend the landlord-tenant Act to modify the definition of "rental unit" to specify that the term would not include a residence occupied by the seller on a temporary basis after the sale of that residence.
House Bill 5386 would amend Chapter 57 (Summary Proceedings to Recover Possession of Premises) of the Revised Judicature Act to specify that a person entitled to possession of premises could recover the possession by summary proceeding after expiration of an agreement under which a seller was given temporary occupancy of the premises after the sale of the premises.
554.601 (H.B. 5385)
600.5714 (H.B. 5386)
BRIEF RATIONALE
Generally, a post-closing home-purchase agreement can include a provision stipulating that the seller of a residential property may continue to reside in that property for a set amount of time. According to testimony, the need for these agreements has increased due to the current housing shortage in the State, which may result in a seller selling his or her property but not having a purchased property immediately available for occupancy. Reportedly, such stipulations in post-closing agreements are underutilized due to concerns that they could be legally interpreted as a landlord-tenant agreement and fail to provide clear protections if the seller does not vacate the property by the agreed time. It has been suggested that a framework and standards be enacted for these types of agreements.
Legislative Analyst: Eleni Lionas
FISCAL IMPACT
The bills would have no fiscal impact on State or local government.
Date Completed: 6-13-24 Fiscal Analyst: Bobby Canell
Michael Siracuse
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.