§ 6-1-1117 — Prohibited conduct

(1) The contract provisions required by
sections 6-1-1111 to 6-1-1114 shall be provided and completed in conformity with
such sections by the equity purchaser.

(2) Until the time within which the home owner may cancel the transaction
has fully elapsed, the equity purchaser shall not do any of the following:

(a) Accept from a home owner an execution of, or induce a home owner to
execute, an instrument of conveyance of any interest in the residence in
foreclosure;

(b) Record with the county recorder any document, including, but not limited
to, the contract or any lease, lien, or instrument of conveyance, that has been
signed by the home owner;

(c) Transfer or encumber or purport to transfer or encumber an interest in
the residence in foreclosure to a third party; or

(d) Pay the home owner any consideration.

(3) Within ten days following receipt of a notice of cancellation given in
accordance with sections 6-1-1113 and 6-1-1114, the equity purchaser shall return
without condition the original contract and any other documents signed by the
home owner.

(4) An equity purchaser shall make no untrue or misleading statements of
material fact regarding the value of the residence in foreclosure, the amount of
proceeds the home owner will receive after a foreclosure sale, any contract term,
the home owner's rights or obligations incident to or arising out of the sale
transaction, the nature of any document that the equity purchaser induces the
home owner to sign, or any other untrue or misleading statement concerning the
sale of the residence in foreclosure to the equity purchaser.

Legislative History

Source: L. 2006: Entire part added, p. 1342, � 1, effective May 30.