CHAPTER 227

FORMERLY

HOUSE BILL NO. 412

AN ACT TO AMEND CHAPTER 3, TITLE 25, DELAWARE CODE RELATING TO CONTRACTS FOR THE SALE OF REAL ESTATE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 3, Title 25, Delaware Code by adding thereto a new §314 to read as follows:

"§314. Contract requirements for the sale of real estate involving seller financing.

Every contract for the sale of improved or unimproved real estate under which the seller(s) agree to provide any financing for the purchaser(s) shall include as an integral part of the contract a complete amortization schedule for all payments to be made under such financing agreement. Such amortization schedule shall (a) include a
per payment breakdown of principal and interest and a per payment computation of the unpaid principal balance remaining, (b) include a statement that the seller(s) and purchaser(s) have read and understand the amortization schedule, and (c) be signed by the seller(s) and purchaser(s).

Every contract for the sale of improved or unimproved real estate under which the seller(s) agree to provide any financing for the purchaser(s) shall clearly state the principal amount of seller financing, exclusive of interest, which comprises the purchase price thereunder, and the amount of any interest to accrue under said seller financing shall not be included in the purchase price stated thereunder.

Failure to comply with the requirements of either subsection (a) or (b) of this section shall make the contract voidable at the option of either party to the contract prior to settlement."

Section 2. This Act shall take effect 90 days following its enactment into