WeVote
Log In

Bill

Bill

H 1332

An Act to protect equity in real estate transactions

194th Legislature (2025-2026) Introduced by Jeff Turco

Bill H 1332 mandates counseling and clear disclosures for shared appreciation mortgages, enhancing consumer protection and ensuring informed decisions in real estate transactions.

Hearing rescheduled to 11/18/2025 from 10:30 AM-01:00 PM in A-2 and Virtual Hearing updated to New End Time
0
WeVote Research Nonpartisan
Bill Summary · H 1332

Summary of Bill H 1332: An Act to Protect Equity in Real Estate Transactions

Bill Number: H 1332
Introduced: February 27, 2025
Status: Hearing rescheduled to November 18, 2025, from 10:30 AM to 1:00 PM in A-2
Sponsor: Representative Jeffrey Rosario Turco (19th Suffolk)
Related Bill: HD 3930 (replaces)

Purpose and Intent

Bill H 1332 aims to enhance consumer protection in real estate transactions, specifically concerning shared appreciation mortgage agreements. The legislation seeks to ensure that individuals acquiring or re-acquiring residential properties are fully informed about the implications of entering into such agreements, thereby promoting equity and transparency in the housing market.

Key Provisions

  1. Mandatory Third-Party Counseling:

    • Individuals must obtain counseling from a HUD-certified agency before entering into a shared appreciation mortgage. The cost of this counseling will be covered by the entity offering the mortgage.

  2. Disclosure Requirements:

    • Entities must provide a written disclosure to potential borrowers before closing, detailing the terms of the shared appreciation mortgage. This includes:
      • The requirement to enter into a shared appreciation mortgage and promissory note.
      • The conditions under which shared appreciation payments are due, such as upon sale or refinancing of the property.
      • The maximum shared appreciation payment, capped at 15% of the property's appreciation value or 15% of the property's value at the time of the mortgage, minus any improvement costs.

  3. Appraisal Standards:

    • All appraisals related to shared appreciation mortgages must be conducted by state-certified general or residential real estate appraisers.

  4. Liability for Violations:

    • The originating entity will be held liable for any violations of applicable federal and state laws and regulations regarding shared appreciation mortgages.

  5. Regulatory Oversight:

    • The Attorney General will have the authority to promulgate rules and regulations to implement and modify the disclosure notice as necessary.

Impact

  • Affected Parties:

    • Homebuyers and homeowners considering shared appreciation mortgages will be directly impacted, as they will receive better guidance and protection.
    • Entities offering shared appreciation mortgages will need to comply with the new requirements, potentially affecting their business practices.

  • Consumer Protection:

    • The bill aims to reduce the risk of consumers entering into unfavorable mortgage agreements without fully understanding their obligations and rights.

Procedural Aspects

  • The bill was referred to the Committee on Financial Services on the same day it was introduced.
  • A hearing was initially scheduled for November 7, 2025, but has since been rescheduled to November 18, 2025.

This legislation represents a significant step towards ensuring that equity is protected in real estate transactions, particularly for those engaging with shared appreciation mortgage agreements.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.