Bill Text: CA AB1424 | 2025-2026 | Regular Session | Introduced

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Bill Title: Home equity sales contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-21 - Introduced. To print. [AB1424 Detail]

Download: California-2025-AB1424-Introduced.html

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CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1424

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Introduced by Assembly Member Celeste Rodriguez

February 21, 2025

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An act to amend Section 1695.2 of the Civil Code, relating to contracts.

LEGISLATIVE COUNSEL'S DIGEST

AB 1424, as introduced, Celeste Rodriguez. Home equity sales contracts.

Existing law regulates the terms and conditions of home equity sales contracts, and requires those contracts to meet specified requirements, including, among other things, that the contract be written in the same language principally used by the equity purchaser and equity seller to negotiate the sale of the residence in foreclosure.

This bill would make a nonsubstantive change to the provision specifying the contract requirements.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1695.2 of the Civil Code is amended to read:

1695.2.

 Every contract shall be written in letters of a size equal to 10-point bold type, in the same language principally used by the equity purchaser and equity seller to negotiate the sale of the residence in foreclosure foreclosure, and shall be fully completed and signed and dated by the equity seller and equity purchaser prior to the execution of any instrument of conveyance of the residence in foreclosure.