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House concurs with Senate amendment allowing developer use of purchaser deposits backed by surety bond
Summary
The House concurred in the Senate amendment to H.666, which enables developers to use purchaser deposits in a building project when secured by a 100% surety bond and requires developers provide purchasers a copy of that bond.
The House considered the Senate's proposed amendment to H.666, which would permit a developer to use purchaser deposits for a residential building project so long as the deposits are protected by a 100% surety bond. The amendment replaces a prior provision that required disclosure of the surety bond issuer with a requirement that purchasers be provided a copy of the surety bond protecting their deposit.
The member from Brandon explained the amendment’s intent: to provide another financing option for residential development while protecting purchasers by requiring a copy of the surety bond. Committee records show stakeholder testimony, and the committee reported favorably in a straw poll. The House took a voice vote and concurred in the Senate proposal of amendment.
The concurrence was announced from the floor and the business calendar concluded.
