(a) It is unlawful for a person or entity other than the transferor to engage in, promise to engage in, arrange, offer, promote, solicit, assist with, or carry out a foreclosure rescue transaction for financial gain or with the expectation of financial gain, unless prior to or at the time of transfer, the transferee pays the transferor at least fifty percent (50%) of the fair market value of the property as determined by a licensed appraiser. An appraisal to determine the fair market value of the property must be performed no more than 90 days prior to the transfer. The appraisal shall be delivered to the transferor no more than three days after the appraisal is performed and no less than seven days prior to the transfer of the property. This section does not apply to exempt transactions.
(b) Every contract to effectuate a foreclosure rescue transaction in which the transferee pays at least 50% of the fair market value of the property, shall be in writing, shall be signed and acknowledged by all parties to it, and shall contain all the terms to which the parties have agreed. The contract shall contain at least all of the following:
(1) The names and addresses of all parties to the contract.
(2) The legal description of the property being transferred.
(3) Any financial obligation of the transferor that will be assumed by the transferee.
(4) The total amount to be paid by the transferee in connection with the transaction.
(5) The fair market value of the property as determined by a licensed appraiser.
(6) A description of the interest in the property retained by the transferor as provided in G.S. 75-120(3)d.
(7) The terms of the transferor's right to any future possessory or ownership interest in the property. (2010-164, s. 2.)
Last modified: March 23, 2014