Prohibited conduct.

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(1) The contract provisions required by sections 6-11111 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:

  1. Accept from a home owner an execution of, or induce a home owner to execute, aninstrument of conveyance of any interest in the residence in foreclosure;

  2. Record with the county recorder any document, including, but not limited to, thecontract or any lease, lien, or instrument of conveyance, that has been signed by the home owner;

  3. Transfer or encumber or purport to transfer or encumber an interest in the residencein foreclosure to a third party; or

  4. Pay the home owner any consideration.

  1. Within ten days following receipt of a notice of cancellation given in accordancewith 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.

  2. An equity purchaser shall make no untrue or misleading statements of material factregarding 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.

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


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