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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of future listing right purchase |
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contracts; imposing a fee; requiring an occupational registration. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1101, Occupations Code, is amended by |
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adding Subchapter R to read as follows: |
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SUBCHAPTER R. FUTURE LISTING RIGHT PURCHASE CONTRACT |
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Sec. 1101.851. DEFINITIONS. In this subchapter: |
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(1) "Future listing right purchase contract" means a |
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contract entered into between a purchasing company and an owner of |
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real estate that obligates the owner to enter into a real estate |
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listing agreement with a particular person for the future sale of |
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that real estate. |
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(2) "Purchasing company" means a person who purchases |
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or offers to purchase a future listing right for real estate. |
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Sec. 1101.852. REGISTRATION REQUIRED. (a) A person may not |
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act as a purchasing company unless the person is registered with the |
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commission. A future listing right purchase contract is not |
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enforceable if the purchasing company is not registered at the time |
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the contract is executed. |
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(b) The commission by rule shall establish eligibility |
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requirements for registration. |
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(c) An applicant for registration must submit an |
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application on a form prescribed by the commission and pay a $7,500 |
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application fee. |
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(d) A registration is valid for two years. |
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(e) A person may renew an unexpired registration by paying |
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to the commission a renewal fee of $5,000. |
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Sec. 1101.853. SURETY BOND. The commission may require a |
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registration holder to maintain a surety bond payable to the |
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commission in an amount prescribed by commission rule, not to |
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exceed $50,000, for the benefit of a party who suffers damages |
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caused by the failure of the registration holder to fulfill |
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obligations under this subchapter. |
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Sec. 1101.854. PROHIBITED PRACTICES. A registration holder |
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may not: |
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(1) intentionally advertise materially false |
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information regarding the registration holder's products or |
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services; or |
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(2) contract for the right to establish the sales |
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price for real estate subject to a future listing right purchase |
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contract. |
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Sec. 1101.855. FUTURE LISTING RIGHT PURCHASE CONTRACT; |
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FORM. (a) The term of a future listing right purchase contract may |
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not exceed 30 years. |
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(b) A future listing right purchase contract must: |
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(1) include a provision authorizing: |
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(A) the real estate owner to cancel the contract |
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without penalty or further obligation not later than the fifth |
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business day after the date of funding by providing notice to the |
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purchasing company and returning the full amount of any disbursed |
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funds; and |
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(B) a person who inherits the real estate on the |
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death of the owner to cancel the contract not later than the 90th |
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day after the date of the owner's death by providing notice to the |
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purchasing company and returning the full amount of any disbursed |
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funds; |
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(2) state that the purchasing company has no right to |
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establish the sales price for the real estate subject to the |
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contract or to compel the owner to sell the real estate; |
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(3) state the purchase price and all charges and fees |
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to be paid under the contract; and |
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(4) require that a copy of the executed contract be |
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provided to the owner not later than the seventh business day after |
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the date the owner signs it. |
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(c) A future listing right purchase contract may be recorded |
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on the property to which it relates in the same manner as an |
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easement or mortgage. |
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(d) The commission shall adopt a form for a future listing |
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right purchase contract that may be used by a registration holder. |
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Sec. 1101.856. ASSIGNABILITY. A future listing right |
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purchase contract is assignable by the purchasing company. |
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Sec. 1101.857. APPLICABILITY OF OTHER LAW. A future listing |
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right purchase contract is not subject to state law governing loans |
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or investment contracts. |
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Sec. 1101.858. ENFORCEMENT. If a court determines that a |
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purchasing company has wilfully violated this subchapter by |
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deception in regard to entering into a future listing right |
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purchase contract, that contract is unenforceable. |
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SECTION 2. This Act takes effect September 1, 2023. |