Senate approves waiting-period rule for institutional buyers of single-family homes

The Senate approved a bill that requires certain institutional real-estate investors to wait 90 days before finalizing offers on single- and two-family homes, with sponsors saying the pause helps owner-occupant buyers compete.

Sponsor Senator Marks said the provision keeps houses on the market for families and helps preserve generational wealth. "This is to make sure that our single family and 2 family homes stay with single family and 2 family [buyers]," Marks said (SEG 3838-3860).

Opponents including Senator Sampson called the measure arbitrary, questioned thresholds such as owning 10 or more single-family units or holding $50 million in assets, and warned the restriction could lower sale prices by reducing competition and thus reduce sellers' proceeds (SEG 3868-3892, 4460-4480). Sampson argued the bill could invite constitutional challenges and have unintended economic effects.

Sponsors said the bill mirrors measures in other states and applied safeguards: an institutional investor still may buy a home after the waiting period and exceptions exist for housing deserts. The amended bill replaced the phrase "private equity" with "institutional real estate investor" and raised some thresholds during committee compromise.

A roll-call vote carried the bill (27-9). Backers said municipalities and housing advocates hoped the law would preserve neighborhood character and improve owner-occupant access; critics warned of market distortion and legal risk.

What's next: The law takes effect as provided in the statute; municipalities and housing-policy advocates will watch implementation and potential legal challenges.