Senate Bill 453, titled the Homebuyer Fairness & Protection Act, would place a cap on the amount of due diligence funds a seller may require in a residential real estate transaction. Under the bill, a seller could not condition acceptance of an offer on due diligence funds exceeding 1% of the purchase price. Any contract term requiring more than that amount would be void and unenforceable. The bill also defines due diligence funds as nonrefundable money paid directly to the seller in exchange for the buyer’s opportunity to investigate the property and transaction during an agreed period.
In addition to regulating real estate transaction terms, the bill appropriates $10 million in nonrecurring General Fund money to the Office of State Budget and Management for a grant to the North Carolina Housing Coalition to support homebuyer education services. The measure would take effect in stages: the funding provision on July 1, 2025, and the due diligence cap on October 1, 2025, applying to offers accepted on or after that date.
Impact
The bill would amend Chapter 22B of the North Carolina General Statutes by creating a new Article on unenforceable real estate transaction charges, specifically limiting due diligence fees in residential property sales. It would also create a private enforcement consequence by allowing buyers to recover court costs and reasonable attorneys’ fees if they sue to recover funds charged above the statutory cap. Separately, it would direct state funds to a nonprofit housing organization to expand homebuyer education, affecting state budgeting and housing assistance policy.
Sentiment
The bill’s title and structure suggest a consumer-protection approach aimed at making home purchases more affordable and predictable for buyers, especially in a competitive housing market. Based on the bill text alone, the measure appears designed to help prospective homeowners and support education efforts, with no recorded committee debate or votes provided to indicate formal opposition or support. The available context therefore points to a generally pro-homebuyer, pro-consumer policy posture, but without documented legislative sentiment from hearings or floor action.
Contention
The main policy issue is the proposed 1% cap on due diligence funds, which would limit a seller’s ability to demand large nonrefundable payments upfront. Supporters would likely view the cap as protection against excessive fees that can price out first-time or lower-income buyers, while opponents may argue it interferes with private contract negotiations and could reduce seller leverage in a tight market. The $10 million appropriation to the North Carolina Housing Coalition could also draw scrutiny from fiscal conservatives concerned about a new recurring policy commitment, even though the bill specifies nonrecurring funds.
Providing for the establishment of first-time homebuyer savings accounts for first-time homebuyers in this Commonwealth; establishing the First-time Homebuyer Savings Account Program and the First-time Homebuyer Savings Account Fund; and imposing duties on the Treasury Department.
Establishes New Jersey Homebuyer Tax Credit Program under gross income tax for certain home purchases during qualified periods by first-time homebuyers.
Providing for the establishment of first-time homebuyer savings accounts for first-time homebuyers in this Commonwealth; establishing the First-time Homebuyer Savings Account Program and the First-time Homebuyer Savings Account Fund; and imposing duties on the Treasury Department.