HB 2800: Property; owners association; sale of real estate; notifications; disclosures; fees; restrictions; documentations; emergency. - Oklahoma

House Committee Substitute → Floor (House) · 5 edits

MODERATE

The bill text was updated from the House Committee Substitute version to the Floor version, incorporating specific amendments. These changes primarily adjust the document retention and accessibility timelines, set specific dollar limits on fees for homeowners, and restrict the types of restrictive covenants an owners association can enforce.

Scope change

The scope of the bill remains focused on regulating homeowners associations and real estate developments, but the specific operational rules regarding fees, document access, and covenant restrictions have been modified.

REQUIREMENT

The requirement for managing entities to retain and provide copies of recorded covenants was modified to mandate electronic accessibility within 72 hours of a request.

New fee caps were added, limiting individual management fees to $175 and fees for good standing documents to $50.

Restrictive covenants that limit the fair economic use of a property, such as bans on renting or running home businesses, are now prohibited.

Requirements for disclosing fee structures and fine schedules were added to ensure transparency for homeowners.

TECHNICAL

The header and page numbering were updated to reflect the 'Floor Version' of the bill.

Proposed Policy Committee Substitute 1 → House Committee Substitute · 5 edits

MODERATE

The bill was rewritten from a Proposed Policy Committee Substitute to a House Committee Substitute, resulting in significant substantive changes to fee limits and document retention rules. The most critical change is the reduction of the maximum fee for providing a property condition report from $175 to $25, while also removing the previous exemption for this fee. Additionally, the requirement for managing entities to retain and provide recorded covenants was modified to apply specifically to title company settlement services providers during a closing, rather than the broader managing entity.

Scope change

The bill's scope was narrowed regarding who must provide records; the obligation to provide copies of recorded covenants and restrictions is now specifically assigned to the title company settlement services provider closing the sale, rather than the general managing entity of the development.

REQUIREMENT

The entity responsible for providing copies of recorded covenants and restrictions changed from the 'managing entity' to the 'title company settlement services provider' closing the sale.

The previous rule stating that homeowners should not be charged a fee for a report on said property was removed.

The requirement to provide a statement of good standing within 7 days was removed from the text.

FISCAL

The maximum fee for providing a report on the condition of a property for sale was reduced from $175 to $25.

TIMELINE

The requirement for managing entities to retain and make records accessible electronically within 72 hours was removed and replaced with a specific provision for title companies to provide copies at closing.

Engrossed → Proposed Policy Committee Substitute 1 · 6 edits

MODERATE

The bill was converted from an 'Engrossed' version to a 'Proposed Policy Committee Substitute' by completely rewriting the text. This version significantly expands the scope of the legislation to include new requirements for disclosing fee structures, limiting fine amounts, prohibiting restrictive covenants that limit fair economic use of property, and mandating annual updates to fine schedules. It also modifies the timeline for providing documents from three business days to seventy-two hours and changes the fee for property condition reports from free to a capped $50 charge.

Scope change

The bill's scope expanded to include new provisions regarding fee transparency, restrictions on fines, and prohibitions on covenants limiting fair economic use (such as short-term rentals or home businesses).

REQUIREMENT

Added a requirement for owners associations to disclose their fee structure and potential charges to homeowners.

Changed the deadline for providing recorded covenants and restrictions electronically from three business days to seventy-two hours.

Added a prohibition against owners associations passing restrictive covenants that limit the fair economic use of a property, including short-term rentals and home businesses.

Added a requirement that owners associations update their fine schedule no more than once per calendar year and notify owners of meetings to discuss these updates.

Modified the fee for providing a property condition report from free to a maximum of $50.

Modified the fee for providing good standing documents from $25 to $50.

Introduced → Engrossed · 5 edits · Mar 27, 2025

MODERATE

The bill was reformatted from an 'Introduced' version to an 'Engrossed' version, incorporating significant substantive changes to property disclosure laws. Key updates include extending the time for document access from 72 hours to three business days, increasing the maximum fee for good-standing letters from $50 to $175, and adding a new right for buyers to withdraw from a contract within five days if restrictive covenants limit fair economic use.

Scope change

The bill's scope expanded to explicitly include the right for buyers to withdraw from a contract if restrictive covenants limit fair economic use (such as renting or running a home business), and it now applies to settlement services providers in addition to title insurance companies.

REQUIREMENT

Added a new provision allowing buyers to withdraw from a real estate contract within five days if the property has restrictive covenants that limit fair economic use, such as the right to rent or operate a home business.

Extended the deadline for managing entities to provide requested documents to three business days, up from the previous 72 hours.

Added a requirement that owners associations must disclose their fee structure and potential charges to homeowners in their governing documents.

Updated the amendment to Section 857 to clarify that copies of covenants must be provided by settlement services providers at closing, with a fee cap of $25 for copies.

FISCAL

Increased the maximum fee a title company can charge for issuing a 'good standing' letter from $50 to $175.

Property; owners association; sale of real estate; notifications; disclosures; fees; restrictions; documentations; emergency.

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