The Senate Committee on Judiciary offered the following
substitute to HB 618:
A BILL TO BE ENTITLED
AN ACT
To amend Title 44 of the Official Code of Georgia Annotated, relating to property, so as to
provide for certain protections in the conveyancing of real property in this state; to require
any seller of real property in this state to make certain disclosures regarding flood damage
to such property; to provide a definition; to provide for violations of the "Fair Business
Practices Act of 1975"; to exclude any requirements for an independent investigation or
inquiry; to provide for a fine for any frivolous mechanic lien filed; to provide for related
matters; to provide an effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 44 of the Official Code of Georgia Annotated, relating to property, is amended in
Chapter 1, relating to general provisions, by revising Code Section 44-1-18, which is
designated as reserved, as follows:
"44-1-18.
<ins>(a) As used in this Code section, the term 'flood' means means any inundation from rising
waters or from the overflow of streams, rivers, or other bodies of water, or from tidal
</ins>
<ins>surges, abnormally high tidal water, tidal waves, tsunamis, hurricanes, or the unusual and
rapid accumulation of standing water resulting from a storm.
(b) In addition to any other disclosures required by federal or state law, prior to any arm's
length transaction of any one-to-four family residential real property located within any
county in this state, it shall be the seller's responsibility to disclose any knowledge of a
flood impacting such property during such seller's ownership of such property by affirming
or denying each of the following:
(1) Any physical damage to the property or improvements located on such property
caused by a flood during such seller's ownership of such property;
(2) Any insurance claim made by such seller for any damages due to a flood loss covered
under the National Flood Insurance Program or a private flood insurance policy;
(3) Any repairs made by such seller to the property or improvements located on such
property as a result of a flood regardless of whether any insurance claim was filed;
(4) Any notification to such seller regarding the designation of such property as a
repetitive loss structure or severe repetitive loss structure as defined in 42 U.S.C.
Section 4104c(h); and
(5) Any notification to such seller to obtain and maintain flood insurance under federal
law, such as because of a previous form of disaster assistance received by any owner of
such property under the federal Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. Section 5121, et seq.
(c) The required disclosures provided for in subsection (b) of this Code section shall be in
writing, shall be based on the seller's knowledge of a flood impacting such property during
such seller's ownership of such property, and shall identify the approximate date or dates
of any flood impacting such property during such seller's ownership of such property and
the nature of any repairs made to such property during such seller's ownership of such
property.
</ins>
<ins>(d) Any willful omission to any disclosure requirement provided for under this Code
section shall be considered an unlawful act as provided under Part 2 of Article 15 of
Chapter 1 of Title 10, the 'Fair Business Practices Act of 1975.'
(e) Nothing in this Code section shall be construed as requiring a seller or any real estate
broker or advisor representing or working with a seller, landlord, buyer, or tenant to
undertake any independent investigation of or inquiry into any subject matter requiring
disclosure under subsection (b) of this Code section.</ins> <del>Reserved."
</del> SECTION 2.
Said title is further amended in Chapter 14, relating to mortgages, conveyances to secure
debt, and liens, by adding a new Code section to read as follows:
<ins>"44-14-361.6.
Any lien filed pursuant to Code Section 44-14-361 that is made without substantial
justification or that is not made in good faith or that is made with malice or a wrongful
purpose, as such terms are defined in Code Section 51-7-80, shall be subject to a fine of
$1,500.00 per lien filed, in addition to reasonable attorney's fees or court costs."
</ins> SECTION 3.
This Act shall become effective on January 1, 2027.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.