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Bill would exempt lender actions from two‑year family‑transfer restriction

Senate Local Government Committee
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Summary

House Bill 520 would carve exceptions into the two‑year nonconveyance rule for family transfers so lenders can accept family‑transfer parcels as collateral and foreclose when necessary; banking groups and the Association of Counties supported the bill as a technical fix to SB158 consequences.

Representative Larry Brewster presented House Bill 520 to address an unintended consequence of a prior law (Senate Bill 158) that imposed a two‑year nonconveyance period on family‑transfer parcels. Brewster said the bill exempts foreclosure sales and enables lenders to take a family‑transfer parcel as collateral and…

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