NY Real Prop L § 265-A (2021)
2021 New York Laws RPP - Real Property Article 8 - Conveyances and Mortgages 265-A - Home Equity Theft Prevention.

§  265-a.  Home  equity theft prevention. 1. (a) The legislature finds and declares that homeowners who are in default on their mortgages or in foreclosure may be vulnerable to fraud, deception, and unfair dealing by home equity purchasers. The  recent  rapid  escalation  of  home  values throughout  urban and rural areas has resulted in a significant increase in home equity, which constitutes the greatest financial asset  held  by many  homeowners  of  this  state.  During  the  time period between the default on  the  mortgage  and  the  scheduled  foreclosure  sale  date, homeowners   in   financial  distress,  especially  poor,  elderly,  and financially unsophisticated homeowners,  are  vulnerable  to  aggressive "equity  purchasers"  who  induce  homeowners  to sell their homes for a small fraction of their fair market values, or in some cases  even  sign away  their  homes,  through the use of schemes which often involve oral and  written  misrepresentations,  deceit,   intimidation,   and   other unreasonable commercial practices.  (b)  The  legislature  declares  that  it is the express policy of the state to preserve and guard the precious asset of home equity,  and  the social as well as the economic value of homeownership.  (c)  The  legislature  further finds that equity purchasers may have a significant impact upon the economy and well-being of this state and its local communities, and therefore the  provisions  of  this  section  are necessary to promote the public welfare.  (d) The intent and purposes of this section are to provide a homeowner with  information necessary to make an informed and intelligent decision regarding the sale  or  transfer  of  his  or  her  home  to  an  equity purchaser;  to require that the sales agreement be expressed in writing; to safeguard equity sellers against deceit and  financial  hardship;  to ensure,  foster  and  encourage fair dealing in the sale and purchase of homes in foreclosure or default; to prohibit representations  that  tend to  mislead; to prohibit or restrict unfair contract terms; to provide a cooling off period for equity sellers who enter into covered  contracts; to  afford  equity  sellers  a  reasonable and meaningful opportunity to rescind sales to equity purchasers; and to  preserve  and  protect  home equity for the homeowners of this state.   2. The following definitions shall apply to this section:  (a)  "Bona  fide  purchaser  or  encumbrancer  for value" means anyone acting in good faith who purchases the residential  real  property  from the  equity  purchaser for valuable consideration or provides the equity purchaser with a mortgage or provides a subsequent bona  fide  purchaser with  a  mortgage,  provided  that he or she had no notice of the equity seller's continuing right to, or equity in, the property  prior  to  the acquisition of title or encumbrance, or of any violation of this section by the equity purchaser as related to the subject property.  (b)  "Business day" means any calendar day except Sunday or the public holidays as set forth in section twenty-four of the general construction law.  (c) "Covered contract" means any contract, agreement, or  arrangement, or  any  term  thereof,  between  an  equity purchaser and equity seller which:  (i) is incident to the sale of a residence in foreclosure; or  (ii) is incident to the sale of a residence in foreclosure or  default where  such  contract,  agreement or arrangement includes a reconveyance arrangement; or  (iii) is incident to the sale of a residence that  is  the  collateral for  a "distressed home loan" as defined in paragraph (d) of subdivision one of section two hundred sixty-five-b of this article.   For purposes of this  section,  any  reference  to  the  "sale"  of  a residence  by  an  equity  seller to an equity purchaser shall include a  transaction where an  equity  seller  receives  consideration  from  the equity purchaser, and a transaction involving a transfer of title to the equity  purchaser  where  no  consideration  is  provided  to the equity seller.  (d)  "Default"  means  that  the  equity  seller is two months or more behind in his or her mortgage payments.  (e) "Equity purchaser" means any person who or entity  which  acquires title  to any residence in foreclosure or, where applicable, default, or the  representative  of  such  person  or  entity  as  defined  in  this subdivision, except a person who acquires such title as follows:  (i)  to  use,  and  who  uses,  such  property  as  his or her primary residence;  (ii) by a deed from a referee in a foreclosure sale conducted pursuant to article thirteen of the real property actions and proceedings law;  (iii) at any sale of property authorized by statute;  (iv) by order or judgment of any court;  (v) from a spouse, or from a parent, grandparent, child, grandchild or sibling of such person or such person's spouse;  (vi) as a not-for-profit housing organization or as a  public  housing agency; or  (vii) a bona fide purchaser or encumbrancer for value.  (f)  "Equity seller" means a natural person who is a property owner or homeowner at the time of the equity sale.  (g) "Foreclosure" means that there is an active lis pendens  filed  in court  pursuant  to  article  thirteen  of the real property actions and proceedings law against the subject property, or the subject property is on an active property tax lien sale list.  (h) "Property owner" or "homeowner" means  any  or  all  record  title owners  of  the  residential  real  property  in  foreclosure  or, where applicable, default at the time of the equity sale.  (i) "Reconveyance arrangement" means:  (i) the transfer of title to residential real property  by  an  equity seller  who is in default or foreclosure, either by transfer of interest from an equity seller to  an  equity  purchaser  or  by  creation  of  a mortgage  or  other  lien  or  encumbrance during the time of default or foreclosure  that  allows  the  equity  purchaser  to  obtain  legal  or equitable title to all or part of the property, and  (ii) the subsequent conveyance, or promise of a subsequent conveyance, of  an  interest  back to the equity seller by the equity purchaser that allows the equity seller to regain possession  of  the  property,  which interest  shall  include  but  not  be  limited to a purchase agreement, option to purchase, or lease.  (j) "Representative" means  a  person  who  in  any  manner  solicits, induces,  arranges,  or  causes  any  equity seller to transfer title or solicits any member of the equity seller's family or household to induce or cause any equity  seller  to  transfer  title  to  the  residence  in foreclosure or, where applicable, default to the equity purchaser.  (k) "Residence" and "residential real property" means residential real property  consisting of one- to four-family dwelling units, one of which the equity seller occupies or occupied at a time  immediately  prior  to the equity sale as his or her primary residence.   3.  Every covered contract and notice of cancellation attached thereto shall be written in letters of a size equal  to  at  least  twelve-point bold  type,  in English or in both English and Spanish if Spanish is the primary language of the equity seller, and shall be fully completed  and signed  and  dated  by  the  equity  seller  and  equity  purchaser. Any instrument of conveyance shall become effective no sooner than  midnight  of  the  fifth business day after the date on which the covered contract is executed.   4.  All  covered  contracts  shall contain the entire agreement of the parties and shall include, but not be limited to, the following terms:  (a) The name, business address, and the telephone number of the equity purchaser;  (b) The address of the residence in foreclosure or, where  applicable, default;  (c)  The  total  consideration  to be given by the equity purchaser in connection with or incident to the sale;  (d)  A  complete  description  of  the  terms  of  payment  or   other consideration  including, but not limited to, any services of any nature which the equity purchaser represents he or she  will  perform  for  the equity seller before or after the sale;  (e) The time, if any, at which physical possession of the residence is to  be  transferred to the equity purchaser and the residence vacated by the equity seller;  (f) The terms of any rental or lease agreement;  (g) The terms of any reconveyance arrangement;  (h)  A  notice  of  cancellation  as  provided  in  paragraph  (a)  of subdivision six of this section; and  (i)  The  following  notice  shall appear on the contract in immediate proximity to the space reserved for the equity  seller's  signature  and shall be in at least fourteen-point bold type if the covered contract is printed  or  in  capital  letters  if the covered contract is typed. The notice must contain the name of the equity purchaser and  the  date  and time  by  which the covered contract must be cancelled. The notice shall be completed by the equity purchaser:                     "NOTICE REQUIRED BY NEW YORK LAW You  may  cancel  this  contract  at  any  time   before   midnight   of ________________________________________.                                   (Date) ________________________________________________________________________                     Name of Equity Purchaser) or anyone working for ____________________________ CANNOT ask you to                     Name of Equity Purchaser) sign or have you sign any deed or any other document until your right to cancel  this  contract  has ended.   See attached notice of cancellation form for an explanation of this right.  You  should  always  consult  an attorney  or  community  organization before signing any legal documents concerning your home. It is advisable that you find your  own  attorney, and  not  consult  with  an attorney who has been provided to you by the purchaser. The law  requires  that  this  contract  contain  the  entire agreement.  You should not rely upon any other written or oral agreement or promise."   The equity purchaser shall accurately enter  the  date  on  which  the right  to  cancel  ends.  The  covered contract required by this section shall survive delivery of any instrument of conveyance of the  residence in  foreclosure  or, where applicable, default, and shall have no effect on persons other than the parties to the covered contract.   5. (a) In addition to the right of rescission described in subdivision eight of this section, the equity seller has the  right  to  cancel  any covered  contract  with  an  equity  purchaser  until  midnight  of  the fourteenth business day following the day on which the equity seller and equity purchaser  sign  a  covered  contract  that  complies  with  this section.  (b) Cancellation occurs when the equity seller, or a representative of the equity seller, personally delivers written notice of cancellation to  the  address  specified  in  the  covered contract or sends a letter via facsimile or other means of written communication, United  States  mail, or through an established commercial letter delivery service, indicating cancellation  to  the business address of the equity purchaser listed on the covered contract. Proof of facsimile delivery or  proof  of  mailing creates   a  presumption  that  the  notice  of  cancellation  has  been delivered.  (c) A notice of cancellation given by the equity  seller  pursuant  to paragraph  (a)  of this subdivision need not take the particular form as provided with the covered contract and, however expressed, is  effective if  it  indicates  the intention of the equity seller not to be bound by the covered contract.  (d) Within ten days following receipt  of  a  notice  of  cancellation given  in  accordance  with this subdivision, the equity purchaser shall return without condition any original covered  contract  and  any  other documents  signed  by  the  equity  seller  as  well as any fee or other consideration received by the equity purchaser from the  equity  seller. Cancellation  of  the  contract  shall  release the equity seller of all obligations to pay fees to the equity purchaser.   6. (a) The covered contract shall be accompanied by a  form  completed by the equity purchaser in duplicate, captioned "notice of cancellation" in at least twelve-point bold type if the covered contract is printed or in  capital letters if the covered contract is typed. This form shall be attached to the covered contract, shall be easily detachable, and  shall contain  in  type  of  at  least twelve-point if the covered contract is printed or in capital letters if the  covered  contract  is  typed,  the following  statement written in the same language as used in the covered contract:                          "NOTICE OF CANCELLATION  This contract was entered into on ____________________________________                Enter date covered contract signed) You may cancel this contract for the sale of  your  house,  without  any penalty    or    obligation,    at   any   time   before   midnight   of ___________________________. (Enter date) To cancel this transaction, personally deliver a signed and  dated  copy of  this  cancellation  notice,  or  send it by facsimile, United States mail, or an established commercial letter delivery  service,  indicating cancellation to ____________________________________________________, at (Name of purchaser) ___________________________________ (Street address of purchaser's place of business and facsimile number if any) NOT LATER THAN midnight of _______________________________________.                                  Enter date) If  you  wish  to  cancel  this  contract, sign and date both copies and return one copy immediately to the purchaser. I hereby cancel this transaction. __________________________________/_______________________________"Seller's signature)                       (Date)  (b) The equity purchaser shall provide each  equity  seller  with  two copies  of the covered contract and attached notice of cancellation. The equity purchaser shall accurately enter the date on which the  right  to cancel ends.   7.  (a)  Before midnight of the fourteenth business day after the date on which the covered contract is executed, the  equity  purchaser  shall not do any of the following:  (i)  accept  from  any  equity  seller  an execution of, or induce any equity seller to execute, any instrument of conveyance of  any  interest in the residence in foreclosure or, where applicable, default;  (ii)  record  with  the  county clerk any document, including, but not limited to, any instrument of conveyance, signed by the equity seller;  (iii)  transfer  or  encumber  or  purport to transfer or encumber any interest in the residence in foreclosure or, where  applicable,  default to any third party;  (iv) pay the equity seller any consideration; or  (v)  suggest,  encourage,  or provide any form which allows the equity seller to waive his or  her  right  to  cancel  or  rescind  under  this section.  (b)  An  equity  purchaser shall make no false or misleading statement regarding  the  value  of  the  residence  in  foreclosure   or,   where applicable,  default;  the  amount  of  proceeds  the equity seller will receive after a foreclosure sale; the timing of the judicial foreclosure process; any contract term; the equity seller's  rights  or  obligations incident  to  or  arising out of the sale transaction; the nature of any document which the equity purchaser induces the equity seller  to  sign; or  any  other  false or misleading statement concerning the sale of the residence in foreclosure or, where applicable,  default,  or  concerning the reconveyance arrangement.  (c)  An  equity purchaser is prohibited from representing, directly or indirectly, that:  (i) the equity purchaser is acting as an advisor or a  consultant,  or in  any  other  manner represents that the equity purchaser is acting on behalf of the equity seller;  (ii) the equity purchaser has  certification  or  licensure  that  the equity  purchaser  does  not have, or that the equity purchaser is not a member of a licensed profession if he or she is actually such a member;  (iii) the equity purchaser is assisting the equity seller to save  the house  unless  the  equity  purchaser  has  a  good  faith basis for the representation; or  (iv) the equity purchaser is assisting the equity seller in preventing a completed foreclosure unless the equity purchaser  has  a  good  faith basis for the representation.  (d)  It  is unlawful for any equity purchaser to initiate, enter into, negotiate, or consummate any covered contract involving residential real property in foreclosure or, where applicable,  default  if  such  equity purchaser,  by the terms of such covered contract, takes undue advantage of the equity seller.   8.  (a)  Any  transaction  involving  residential  real  property   in foreclosure or, where applicable, default which is in material violation of  subdivision  three,  four,  six,  seven or eleven of this section is voidable and the transaction may  be  rescinded  by  the  equity  seller within  two  years of the date of the recording of the conveyance of the residential real property in foreclosure or, where applicable, default.  (b) Such rescission shall be effected by giving written notice to  the equity  purchaser and his or her successor in interest, if the successor is not a bona fide purchaser or encumbrancer for value as set  forth  in paragraph (c) of this subdivision, and by recording such notice with the county  clerk of the county in which the property is located, within two years of the date of the recording  of  the  conveyance  to  the  equity purchaser. The notice of rescission shall contain the name of the equity seller and the name of the equity purchaser in addition to any successor in  interest  holding  record title to the residential real property and shall particularly describe such residential real property.  The  equity purchaser and his or her successor in interest if the successor is not a bona  fide purchaser or encumbrancer for value as set forth in paragraph (c) of this subdivision, shall have twenty days after  the  delivery  of the  notice in which to reconvey title to the property free and clear of  encumbrances created subsequent to the rescinded transaction  and  which are  due  to  the actions of the equity purchaser. As a condition of the reconveyance of title, the equity seller  shall  return  to  the  equity purchaser  any  consideration received from the equity purchaser as part of the original transaction. Upon failure to reconvey title within  such time,  the  equity  seller may bring an action to enforce the rescission and for cancellation of the covered contract and deed.  (c) The provisions of this subdivision shall not affect  the  interest of  a  bona fide purchaser or encumbrancer for value if such purchase or encumbrance occurred prior to the recording of the notice of  rescission pursuant  to  paragraph  (b)  of  this  subdivision.  Knowledge that the property  was  residential  real  property  in  foreclosure  or,   where applicable,  default  shall  not  impair  the  status of such persons or entities as bona  fide  purchasers  or  encumbrancers  for  value.  This subdivision  shall  not  be deemed to abrogate any duty of inquiry which exists as to rights  or  interests  of  persons  in  possession  of  the residential real property in foreclosure or, where applicable, default.  (d)  In  any  action  brought to enforce a rescission pursuant to this section, a court may award to  a  prevailing  equity  seller  costs  and reasonable attorneys' fees.   9. An equity seller may bring an action for the recovery of damages or equitable  relief  against  an  equity  purchaser  for  a  violation  of subdivision three, four, six, seven or eleven of this section.  A  court may  award  to a prevailing equity seller actual damages plus reasonable attorneys' fees and costs. In addition, the court  may  award  equitable relief, or increase the award in an amount not to exceed three times the equity  seller's  actual damages, or both, if the court deems such award proper. Any action brought pursuant to this section shall  be  commenced within six years after the date of the alleged violation.   10.  (a)(i) Any equity purchaser who, with intent to defraud, violates subdivision seven of this section or engages in any practice which would operate as a criminal fraud or deceit upon an equity seller shall,  upon conviction,  be  guilty of a class E felony and subject to a fine of not more than twenty-five thousand dollars, imprisonment in accordance  with the penal law, or both.  (ii)  Any equity purchaser who knowingly violates subdivision seven of this section shall, upon conviction, be guilty of a class A  misdemeanor and  subject  to  a  fine of not more than twenty-five thousand dollars, imprisonment in accordance with the penal law, or both. A second offense within five years shall be a class E felony and subject to a fine of not more than twenty-five thousand dollars, imprisonment in accordance  with the penal law, or both.  (b)  An  equity  purchaser  who,  when  acting in good faith, violates subdivision seven of this section, shall not be deemed to have  violated such subdivision if the equity purchaser:  (i) establishes by a preponderance of the evidence that the compliance failure  was  not  intentional  and  resulted  from  a  bona  fide error notwithstanding the maintenance  of  procedures  reasonably  adapted  to avoid such errors;  (ii)  notifies  the  equity  seller within ninety days of the contract date of the compliance failure; and  (iii)  makes  appropriate  restitution  to  the  equity   seller   and appropriate  adjustments  to  the  transaction within ninety days of the contract date.   Examples of bona  fide  errors  include,  but  are  not limited to, clerical, calculation, computer malfunction and programming, and  printing  errors.    An  error  of legal judgment with respect to a person's obligations under this section is not a bona fide error, nor is  a failure to provide notices or other material information  required  by this section.   11. (a) In any transaction in which an equity seller purports to grant a  residence  in  foreclosure  or  default to an equity purchaser by any instrument which appears to be an absolute conveyance  and  reserves  to himself  or  herself  or  is  given by the equity purchaser an option to repurchase,  such  transaction  shall  create  a  presumption  that  the transaction  is  a  loan transaction, which may be overcome by clear and convincing evidence to the contrary, and  that  the  purported  absolute conveyance is a mortgage.  (b)   An   equity  purchaser  shall  not  enter  into  a  reconveyance arrangement unless:  (i) The equity purchaser verifies by  appropriate  documentation  that the  equity  seller has or is likely to have a reasonable ability to pay for the subsequent conveyance of an interest back to the equity  seller. In  the case of a lease with an option to purchase, payment ability also includes the reasonable ability to purchase the property within the term of the option to purchase. There is a rebuttable  presumption  that  the equity  purchaser  has  not  verified  reasonable payment ability if the equity purchaser has not obtained documents other than  a  statement  by the  equity  seller  of assets, liabilities and income. The standard for determining a reasonable ability to pay shall be the  same  standard  as set  forth  in  paragraph (k) of subdivision two of section six-l of the banking law;  (ii) the equity purchaser and the equity seller complete a closing for any reconveyance arrangement in which the  equity  purchaser  obtains  a deed  or  mortgage  from an equity seller. For purposes of this section, "closing"  means  an  in-person  meeting  to  complete  final  documents incident  to  the sale of the real property or creation of a mortgage on the real property conducted by an attorney who is not employed by or  an affiliate of the equity purchaser;  (iii) the equity purchaser obtains the written consent from the equity seller  before  the equity purchaser grants any interest in the property to anyone else during such  time  as  the  equity  seller  maintains  an interest in the property, including an option to repurchase; and  (iv)  the equity purchaser notifies all existing mortgage lien holders of his or her intent to accept conveyance of an interest in the property from the equity seller, and fully complies with all terms and conditions contained in the mortgage lien documents, including but not  limited  to due-on-sale  provisions  or  meeting  all qualification requirements for assuming the repayment of the mortgage.  (c) An equity purchaser shall not enter into repurchase or lease terms as part of the reconveyance arrangement that are unfair or  commercially unreasonable,  and  is  prohibited  from engaging in any other unfair or unconscionable conduct.  (d) As part of a reconveyance arrangement, an equity  purchaser  shall either:  (i)  ensure  that  title  to the residence is reconveyed to the equity seller; or  (ii) make a payment to the equity seller such that the  equity  seller has  received  consideration in an amount of at least eighty-two percent of the fair market value of the property within one hundred twenty  days of  either the eviction or voluntary relinquishment of possession of the residence by the equity  seller.  The  equity  purchaser  shall  make  a detailed  accounting  of the basis for the payment amount, or a detailed accounting of the reasons for  failure  to  make  a  payment,  including providing  written  documentation  of  expenses, within such one hundred twenty-day period. The accounting shall be on a form prescribed  by  the  department of financial services. For purposes of this subparagraph, the following applies:  (A)  there  is  a rebuttable presumption that an appraisal by a person licensed or certified by an agency of the  federal  government  or  this state  to  appraise real estate establishes the fair market value of the property;  (B) the time for determining the fair market  value  amount  shall  be determined  in the reconveyance arrangement as either at the time of the execution of the reconveyance arrangement or at resale to  a  bona  fide purchaser.  If  the  covered  contract states that the fair market value shall be determined at the time of resale, the fair market  value  shall be  the resale price if it is sold within one hundred twenty days of the eviction or voluntary relinquishment  of  the  property  by  the  equity seller.  If the covered contract states that the fair market value shall be determined at the time of resale, and the  resale  is  not  completed within   one   hundred   twenty   days  of  the  eviction  or  voluntary relinquishment of the property by the equity  seller,  the  fair  market value  shall  be  determined  by  an appraisal conducted within ten days after the end of such one hundred  twenty-day  period  and  payment,  if required,  shall be made to the equity seller. If payment is not made to the equity  seller  at  such  time,  the  fair  market  value  shall  be recalculated  as the resale price on resale and payment shall be made to the equity seller within fifteen days of resale. A  detailed  accounting of the basis for the payment amount shall be made within fifteen days of resale,  including  providing  written  documentation  of  expenses. The accounting shall be on a form prescribed by the department of  financial services;  (C)  "consideration" shall mean any payment or thing of value provided to the equity seller, including unpaid lease payments owed by the equity seller prior to the date of eviction or voluntary relinquishment of  the property,  reasonable  costs paid to third parties necessary to complete the reconveyance transaction, payment of money  to  satisfy  a  debt  or legal  obligation of the equity seller or the reasonable cost of repairs for damage to the dwelling caused by the equity seller  beyond  ordinary wear  and  tear;  but  shall not include amounts imputed as any fee paid directly  or  indirectly  to  the  equity  purchaser,  or  his  or   her representative,  incident  to  a  reconveyance  arrangement,  except for reasonable costs  paid  to  third  parties  necessary  to  complete  the reconveyance.  (D)  "resale" means a bona fide market sale of the property subject to the reconveyance arrangement by the equity purchaser to an  unaffiliated third party.  (E) "resale price" means the purchase price of the property on resale.  (e)  This  subdivision  shall  not  be  deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in  possession of the residential real property in foreclosure or default.  (f)  All  deeds  or  conveyances subject to a reconveyance arrangement shall state explicitly on the face of the document that  the  conveyance is  subject  to a reconveyance arrangement, and shall state the terms of the reconveyance arrangement. Moreover,  all  reconveyance  arrangements must be simultaneously recorded by the equity purchaser with the subject deed in the county clerk's office where the property is located.   12.  Any provision of a covered contract which attempts or purports to limit the liability of the equity purchaser under this section shall  be null  and  void.  Inclusion of such provision shall at the option of the equity seller render the covered contract  void.  The  equity  purchaser shall  be liable to the equity seller for all damages proximately caused by such provision. Any provision in a covered contract which attempts or  purports to require  arbitration  of  any  dispute  arising  under  this section shall be void at the option of the equity seller.   13.  In  addition to the other remedies provided, whenever there shall be a violation of this section, application may be made by the  attorney general in the name of the people of the state of New York to a court or justice  having  jurisdiction  by  a  special  proceeding  to  issue  an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such  violations;  and  if  it shall  appear  to  the  satisfaction  of  the  court or justice that the defendant has, in fact, violated this  section,  an  injunction  may  be issued  by  such court or justice, enjoining and restraining any further violation, without requiring proof that any person has,  in  fact,  been injured  or  damaged thereby. In any such proceeding, the court may make allowances to the attorney general  as  provided  in  paragraph  six  of subdivision  (a)  of  section  eighty-three  hundred  three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this section has occurred, the  court  may impose a civil penalty of not more than twenty-five thousand dollars for each  violation.  In  connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with  the  civil practice law and rules.   14. This section shall not apply to a prior lien holder where the lien was  properly recorded prior to the execution of any covered contract by both the equity seller and the equity purchaser nor shall any  provision of this section be deemed to impair any equity or other available rights of any such prior lien holder.   15.  The  provisions  of  this section shall be liberally construed to effectuate  the  intent  and  to  achieve  the  purposes  set  forth  in subdivision one of this section.   16.  The  provisions  of  this  section  are  not exclusive and are in addition to any other  requirements,  rights,  remedies,  and  penalties provided by law.   17.  Any  waiver  of  the provisions of this section shall be void and unenforceable as contrary to the public policy.   18. If any provision of this section, or if any application thereof to any person or circumstances is held unconstitutional, the  remainder  of this  section and the application of its provisions to other persons and circumstances shall not be affected thereby.