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House Bill 1823 |
House Author: Dutton et al. |
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Effective: 9-1-05 |
Senate Sponsor: Lucio |
House Bill 1823 amends the Property Code to provide for certain rights of a purchaser in an executory contract under which the seller holds the deed for the property until the buyer has paid for the property in full. The bill entitles a purchaser, at any time and without paying penalties or charges of any kind, to convert the purchaser's interest in property under an executory contract into recorded, legal title if the purchaser tenders the amount owed or delivers a promissory note for the balance due and simultaneously executes a deed of trust that secures the purchaser's payment and conveys the property to a trustee. The bill also entitles the purchaser to receive a written statement from the seller regarding the amount owed by the purchaser under the contract and the seller's desired trustee for a deed of trust, and it entitles the purchaser to cancel and rescind an executory contract at any time if the purchaser learns that the seller has not properly subdivided or platted the property. The bill establishes requirements and procedures that relate to these rights. It prohibits a potential seller from executing an executory contract if the seller does not own the property in fee simple title free from any liens or other encumbrances, establishes when this prohibition does not apply, and provides that a violation is actionable under the Deceptive Trade Practices-Consumer Protection Act. The bill further amends the Property Code to add certain protections for a purchaser leasing property with an option to buy the property. House Bill 1823 also amends the Local Government Code to require the municipal authority responsible for approving plats to provide certain information about the plat to a purchaser of real property under a contract for deed, executory contract, or other executory conveyance.