Home Equity Protection Disclosure Recommended

KAR has prepared a new Home Equity Protection Disclosure Addendum that is now available on the Contracts and Forms section of the KAR website.  It is strongly recommended that this form be used in any transfer of owner-occupied real property where the contract will be executed following the filing of a foreclosure action on the property. Under K.S.A. 58-2342, when owner-occupied real property is subject to a pending foreclosure action, this disclosure form must be signed by all parties to any pending real estate transaction that transfers any interest in the underlying property.  In addition, the statutes provides sellers with an automatic right of rescission that allows them to rescind the contract to transfer the property within five days of the execution of the contract