An Act to protect equity in real estate transactions
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill proposes to establish shared appreciation mortgages, a type of home loan where the homeowner’s equity increases as the property value increases, and decreases as the property value decreases. The goal is to protect homeowners’ equity in real estate transactions and promote fairness in the process. It aims to address potential issues related to property value fluctuations and ensure a more stable financial outcome for homeowners.
Key provisions
- Introduces shared appreciation mortgages.
- Aims to protect homeowner equity during real estate transactions.
- Seeks to ensure fairness in real estate transactions.
- The bill is being considered by the Joint Committee on Financial Services.
- The committee has scheduled a hearing on November 18, 2025.
- The reporting date for the committee has been extended to May 4, 2026.
Who is affected
- Homeowners
- Real estate purchasers
- Mortgage lenders
- Financial Services industry
- The State of Massachusetts
Notable changes
- The bill introduces a new mortgage product – the shared appreciation mortgage – which is not currently a standard practice in Massachusetts.
- It potentially shifts the risk of property value declines from the homeowner to the lender.
Bill text
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Sponsors
Official sponsors from legislative records.
2 on record
Primary sponsor
Cosponsor
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