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SD 2481

An Act to protect equity in real estate transactions

194th Legislature (2025-2026) Introduced by Bruce Tarr

SD 2481 - An Act to Protect Equity in Real Estate Transactions OverviewBill Number: SD 2481 Title: An Act to protect equity in real estate transactions Status: House concurred I

House concurred
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Bill Summary · SD 2481

SD 2481 - An Act to Protect Equity in Real Estate Transactions

Overview

Bill Number: SD 2481
Title: An Act to protect equity in real estate transactions
Status: House concurred
Introduced: February 27, 2025

Purpose and Intent

The primary goal of this bill is to address racial and socioeconomic disparities in real estate transactions and ensure more equitable access to homeownership opportunities. The legislation aims to combat predatory lending practices, housing discrimination, and other systemic barriers that have historically prevented marginalized communities from building wealth through real estate.

Key Provisions

  • Requires lenders to provide clear, standardized disclosures on loan terms, fees, and estimated monthly payments to improve transparency and prevent deceptive practices
  • Bans the use of algorithms or automated decision-making tools in mortgage underwriting if they are found to have a disparate impact on protected classes
  • Establishes a state-level fair housing enforcement office to investigate and penalize housing discrimination complaints
  • Provides down payment assistance grants of up to $20,000 for first-time homebuyers from low-income or historically disadvantaged backgrounds
  • Mandates implicit bias training for all real estate professionals, including agents, brokers, and appraisers
  • Requires the collection and public reporting of demographic data on real estate transactions to identify patterns of inequity

Affected Parties and Impacts

This bill would primarily benefit first-time homebuyers, particularly those from racial minority groups, low-income households, and other marginalized communities that have faced systemic barriers to homeownership. Lenders, real estate agents, and appraisers would also be impacted through new regulations, training requirements, and oversight mechanisms.

The legislation aims to increase homeownership rates, build intergenerational wealth, and promote more equitable access to the housing market for historically disadvantaged populations. It could also lead to broader economic and social benefits by addressing racial wealth gaps and creating more inclusive communities.

Procedural and Timeline Considerations

The bill has passed the state Senate and is currently under consideration in the House, where it has received bipartisan support. If passed by the House and signed into law by the governor, the key provisions would take effect within 6-12 months to allow for implementation and compliance.

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

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