S.B. No. 336
AN ACT
1-1 relating to notice and cure provisions required for a defaulting
1-2 purchaser under a contract for deed and to requirements for and
1-3 loans associated with a contract for deed transaction in certain
1-4 counties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The legislature finds that:
1-7 (1) the proliferation of colonias and substandard
1-8 housing developments that lack adequate infrastructure creates
1-9 serious and unacceptable health risks for the residents in these
1-10 areas;
1-11 (2) many residents building homes in these areas do
1-12 not have access to traditional financing and the assistance of a
1-13 professional builder, which promotes expansion of substandard
1-14 housing;
1-15 (3) the contract-for-deed arrangement allows
1-16 low-income persons to purchase property and build homes on the
1-17 property;
1-18 (4) statutory law in this state does not ensure that:
1-19 (A) information about the property, including
1-20 whether utility service is available, whether the property is
1-21 located in a floodplain, or whether the title to the property is
1-22 encumbered by a lien, is disclosed to the purchaser;
1-23 (B) the contract is recorded to notify
1-24 subsequent creditors of the purchaser's interest in the property;
2-1 (C) legal title to the property is transferred
2-2 to the purchaser by the seller when the purchaser has paid all
2-3 amounts due under the contract; or
2-4 (D) the purchaser's equity in the property is
2-5 protected; and
2-6 (5) a purchaser under a contract-for-deed arrangement
2-7 is faced with significant problems requiring statutory protection
2-8 because of:
2-9 (A) the inadequacy of infrastructure in areas
2-10 where this arrangement is commonly used; and
2-11 (B) the unregulated status of the
2-12 contract-for-deed arrangement.
2-13 SECTION 2. Subchapter D, Chapter 5, Property Code, is
2-14 amended to read as follows:
2-15 SUBCHAPTER D. EXECUTORY CONTRACT FOR CONVEYANCE
2-16 Sec. 5.061. AVOIDANCE OF FORFEITURE AND ACCELERATION OR OF
2-17 RESCISSION. A seller may enforce the remedy of rescission or of
2-18 <a> forfeiture <of interest> and <the> acceleration against <of the
2-19 indebtedness of> a purchaser in default under an executory
2-20 contract for conveyance of real property used or to be used as the
2-21 purchaser's residence only if the seller notifies <after notifying>
2-22 the purchaser of:
2-23 (1) the seller's intent to enforce a remedy under this
2-24 section; <the forfeiture and acceleration> and
2-25 (2) the expiration of the following periods:
2-26 (A) <(1)> if the purchaser has paid less than 10
2-27 percent of the purchase price, 15 days after the date notice is
3-1 given;
3-2 (B) <(2)> if the purchaser has paid 10 percent
3-3 or more but less than 20 percent of the purchase price, 30 days
3-4 after the date notice is given; and
3-5 (C) <(3)> if the purchaser has paid 20 percent
3-6 or more of the purchase price, 60 days after the date notice is
3-7 given.
3-8 Sec. 5.062. NOTICE. (a) Notice under Section 5.061 of this
3-9 code must be in writing. If the notice is mailed, it must be by
3-10 registered or certified mail. The notice must be conspicuous and
3-11 printed in 14-point boldface <10-point boldfaced> type or 14-point
3-12 uppercase typewritten letters, and must include on a separate page
3-13 the statement:
3-14 NOTICE
3-15 YOU ARE NOT COMPLYING WITH THE TERMS OF <LATE IN MAKING
3-16 YOUR PAYMENT UNDER> THE CONTRACT TO BUY YOUR PROPERTY
3-17 <HOME>. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS
3-18 NOTICE <MAKE THE PAYMENT> BY (date) THE SELLER HAS THE
3-19 RIGHT TO TAKE POSSESSION OF YOUR PROPERTY <HOME AND TO
3-20 KEEP ALL PAYMENTS YOU HAVE MADE TO DATE>.
3-21 (b) The notice must also:
3-22 (1) identify and explain the remedy the seller intends
3-23 to enforce;
3-24 (2) if the purchaser has failed to make a timely
3-25 payment, specify:
3-26 (A) <(1)> the delinquent amount, itemized into
3-27 principal and interest;
4-1 (B) <(2)> any additional charges claimed, such
4-2 as late charges or attorney's fees; and
4-3 (C) <(3)> the period to which the delinquency
4-4 and additional charges relate; and
4-5 (3) if the purchaser has failed to comply with a term
4-6 of the contract, identify the term violated and the action required
4-7 to cure the violation.
4-8 (c) Notice by mail is given when it is mailed to the
4-9 purchaser's residence or place of business. Notice by other
4-10 writing is given when it is delivered to the purchaser at the
4-11 purchaser's residence or place of business. The affidavit of a
4-12 person knowledgeable of the facts to the effect that notice was
4-13 given is prima facie evidence of notice in an action involving a
4-14 subsequent bona fide purchaser for value if the purchaser is not in
4-15 possession of the real property and if the stated time to avoid the
4-16 forfeiture has expired. A bona fide subsequent purchaser for value
4-17 who relies upon the affidavit under this subsection shall take
4-18 title free and clear of the contract.
4-19 Sec. 5.063. Right to Cure Default. Notwithstanding an
4-20 agreement to the contrary, a purchaser in default under an
4-21 executory contract for the conveyance of real property used or to
4-22 be used as the purchaser's residence may, at any time before
4-23 expiration of the applicable period provided by Section 5.061 of
4-24 this code, avoid the enforcement of a remedy described by that
4-25 section <forfeiture of interest and acceleration of indebtedness>
4-26 by complying with the terms of the contract up to the date of
4-27 compliance.
5-1 Sec. 5.064. Placement of Lien for Utility Service.
5-2 Notwithstanding any terms of a contract to the contrary, the
5-3 placement of a lien for the reasonable value of improvements to
5-4 residential real estate for purposes of providing utility service
5-5 to the property shall not constitute a default under the terms of
5-6 an executory contract for the purchase of the real property.
5-7 Sec. 5.065. DEFAULT. In this subchapter, "default" means
5-8 the failure to:
5-9 (1) make a timely payment; or
5-10 (2) comply with a term of an executory contract.
5-11 SECTION 3. Chapter 5, Property Code, is amended by adding
5-12 Subchapter E to read as follows:
5-13 SUBCHAPTER E. REQUIREMENTS FOR EXECUTORY CONTRACT FOR
5-14 CONVEYANCE APPLICABLE TO CERTAIN COUNTIES
5-15 Sec. 5.091. APPLICABILITY. (a) This subchapter applies
5-16 only to an executory contract that covers real property located in
5-17 a county that, as determined by the Texas Department of Housing and
5-18 Community Affairs:
5-19 (1) has a per capita income that averaged 25 percent
5-20 below the state average for the most recent three consecutive years
5-21 for which statistics are available and an unemployment rate that
5-22 averaged 25 percent above the state average for the most recent
5-23 three consecutive years for which statistics are available; and
5-24 (2) is within 200 miles of an international border.
5-25 (b) This subchapter applies only to a transaction involving
5-26 an executory contract for conveyance of real property used or to be
5-27 used as the purchaser's residence. For purposes of this
6-1 subchapter, a lot measuring one acre or less is presumed to be
6-2 residential property.
6-3 (c) This subchapter does not apply to a transaction
6-4 involving a sale of land by the Veterans' Land Board under an
6-5 executory contract.
6-6 (d) This subchapter does not apply to an executory contract
6-7 that provides for the delivery of a deed from the seller to the
6-8 purchaser within 180 days of the date of the final execution of the
6-9 executory contract.
6-10 Sec. 5.092. DETERMINATION AND NOTICE OF APPLICABILITY.
6-11 (a) The Texas Department of Housing and Community Affairs shall
6-12 annually determine the counties in which this subchapter applies.
6-13 (b) The department shall:
6-14 (1) publish in the Texas Register a list of the
6-15 counties in which this subchapter applies; and
6-16 (2) notify the county clerk of each county to which
6-17 this subchapter applies.
6-18 (c) The notice required by Subsection (b) must state that
6-19 Subchapter E, Chapter 5, Property Code, regulates executory
6-20 contract transactions involving residential property located in the
6-21 county.
6-22 (d) The department shall make its determination not later
6-23 than May 1 of each year, based on consideration of statistics
6-24 excluding the year in which the determination is made. The
6-25 determination is effective beginning June 1 following the
6-26 determination.
6-27 (e) Immediately after receiving notice from the department,
7-1 the county clerk shall publish a copy of the notice on three
7-2 separate days in a newspaper of general circulation in the county.
7-3 If no newspaper is published in the county, the clerk shall post a
7-4 copy of the notice on three separate days on a bulletin board at a
7-5 place convenient to the public in the county courthouse.
7-6 Sec. 5.093. SPANISH LANGUAGE REQUIREMENT. If the
7-7 negotiations that precede the execution of an executory contract
7-8 are conducted primarily in Spanish, the seller shall provide a copy
7-9 in Spanish of all written documents relating to the transaction,
7-10 including the contract, disclosure notice, and annual accounting
7-11 statements required by this subchapter and a notice of default
7-12 required by Subchapter D.
7-13 Sec. 5.094. SELLER'S DISCLOSURE OF PROPERTY CONDITION.
7-14 (a) Before an executory contract is signed by the purchaser, the
7-15 seller shall provide the purchaser with:
7-16 (1) a survey, which was completed within the past
7-17 year, or plat of a current survey of the real property;
7-18 (2) a legible copy of any document that describes an
7-19 encumbrance or other claim, including a restrictive covenant or
7-20 easement, that affects title to the real property; and
7-21 (3) a written notice, which must be attached to the
7-22 contract, informing the purchaser of the condition of the property
7-23 that must, at a minimum, be executed by the seller and purchaser
7-24 and read substantially similar to the following:
7-25 WARNING
7-26 IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU
7-27 MAY NOT BE ABLE TO LIVE ON THE PROPERTY.
8-1 SELLER'S DISCLOSURE NOTICE
8-2 CONCERNING THE PROPERTY AT (street address or legal
8-3 description and city)
8-4 THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS ABOUT THE
8-5 LAND YOU ARE CONSIDERING PURCHASING.
8-6 CHECK ALL THE ITEMS THAT ARE APPLICABLE OR TRUE:
8-7 ___ The property is in a recorded subdivision.
8-8 ___ The property has water service that provides
8-9 potable water.
8-10 ___ The property has sewer service.
8-11 ___ The property has been approved by the appropriate
8-12 municipal, county, or state agency for installation of
8-13 a septic system.
8-14 ___ The property has electric service.
8-15 ___ The property is not in a floodplain.
8-16 ___ The roads to the boundaries of the property are
8-17 paved and maintained by:
8-18 ___ the seller;
8-19 ___ the owner of the property on which the road
8-20 exists;
8-21 ___ the municipality;
8-22 ___ the county; or
8-23 ___ the state.
8-24 ___ No individual or entity other than the seller:
8-25 (1) owns the property;
8-26 (2) has a claim of ownership to the property; or
8-27 (3) has an interest in the property.
9-1 ___ No individual or entity has a lien filed against
9-2 the property.
9-3 ___ There are no back taxes owed on the property.
9-4 ___ There are no restrictive covenants, easements, or
9-5 other title exceptions or encumbrances that prohibit
9-6 construction of a house on the property.
9-7 NOTICE: SELLER ADVISES PURCHASER TO:
9-8 (1) OBTAIN A TITLE ABSTRACT OR TITLE
9-9 COMMITMENT COVERING THE PROPERTY AND HAVE THE ABSTRACT
9-10 OR COMMITMENT REVIEWED BY AN ATTORNEY BEFORE SIGNING A
9-11 CONTRACT OF THIS TYPE; AND
9-12 (2) PURCHASE AN OWNER'S POLICY OF TITLE
9-13 INSURANCE COVERING THE PROPERTY.
9-14 ____________________ ____________________
9-15 (Date) (Signature of Seller)
9-16 ____________________ ____________________
9-17 (Date) (Signature of Purchaser)
9-18 (b) If the property is not located in a recorded
9-19 subdivision, the seller shall provide the purchaser with a separate
9-20 disclosure form stating that utilities may not be available to the
9-21 property until the subdivision is recorded as required by law.
9-22 (c) If the seller advertises property for sale under an
9-23 executory contract, the advertisement must disclose information
9-24 regarding the availability of water, sewer, and electric service.
9-25 (d) The seller's failure to provide information required by
9-26 this section:
9-27 (1) is a false, misleading, or deceptive act or
10-1 practice within the meaning of Section 17.46, Business & Commerce
10-2 Code, and is actionable in a public or private suit brought under
10-3 Subchapter E, Chapter 17, Business & Commerce Code; and
10-4 (2) entitles the purchaser to cancel and rescind the
10-5 executory contract and receive a full refund of all payments made
10-6 to the seller.
10-7 (e) Subsection (d) does not limit the purchaser's remedy
10-8 against the seller for other false, misleading, or deceptive acts
10-9 or practices actionable in a suit brought under Subchapter E,
10-10 Chapter 17, Business & Commerce Code.
10-11 Sec. 5.095. SELLER'S DISCLOSURE OF FINANCING TERMS. Before
10-12 an executory contract is signed by the purchaser, the seller shall
10-13 provide to the purchaser a written statement that specifies:
10-14 (1) the purchase price of the property;
10-15 (2) the interest rate charged under the contract;
10-16 (3) the dollar amount, or an estimate of the dollar
10-17 amount if the interest rate is variable, of the interest charged
10-18 for the term of the contract;
10-19 (4) the total amount of principal and interest to be
10-20 paid under the contract;
10-21 (5) the late charge, if any, that may be assessed
10-22 under the contract; and
10-23 (6) the fact that the seller may not charge a
10-24 prepayment penalty if the purchaser elects to pay the entire amount
10-25 due under the contract before the scheduled payment date under the
10-26 contract.
10-27 Sec. 5.096. CONTRACT TERMS PROHIBITED. A seller may not
11-1 include as a term of the executory contract a provision that:
11-2 (1) imposes an additional late-payment fee that
11-3 exceeds the lesser of:
11-4 (A) eight percent of the monthly payment under
11-5 the contract; or
11-6 (B) the actual administrative cost of processing
11-7 the late payment;
11-8 (2) prohibits the purchaser from pledging the
11-9 purchaser's interest in the property as security to obtain a loan
11-10 to place improvements, including utility improvements or fire
11-11 protection improvements, on the property; or
11-12 (3) imposes a prepayment penalty if the purchaser
11-13 elects to pay the entire amount due under the contract before the
11-14 scheduled payment date under the contract.
11-15 Sec. 5.097. PURCHASER'S RIGHT TO CANCEL CONTRACT WITHOUT
11-16 CAUSE. (a) In addition to other rights or remedies provided by
11-17 law, the purchaser may cancel and rescind an executory contract for
11-18 any reason by sending by telegram or certified or registered mail,
11-19 return receipt requested, or by delivering in person a signed,
11-20 written notice of cancellation to the seller not later than the
11-21 14th day after the date of the contract.
11-22 (b) If the purchaser cancels the contract as provided by
11-23 Subsection (a), the seller shall, not later than the 10th day after
11-24 the date the seller receives the purchaser's notice of
11-25 cancellation:
11-26 (1) return to the purchaser the executed contract and
11-27 any property exchanged or payments made by the purchaser under the
12-1 contract; and
12-2 (2) cancel any security interest arising out of the
12-3 contract.
12-4 (c) The seller shall include in immediate proximity to the
12-5 space reserved in the executory contract for the purchaser's
12-6 signature a statement printed in 14-point boldface type or 14-point
12-7 uppercase typewritten letters that reads substantially similar to
12-8 the following:
12-9 YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY
12-10 TIME DURING THE NEXT TWO WEEKS. THE DEADLINE FOR
12-11 CANCELING THE CONTRACT IS (date). THE ATTACHED NOTICE
12-12 OF CANCELLATION EXPLAINS THIS RIGHT.
12-13 (d) The seller shall provide a notice of cancellation form
12-14 to the purchaser at the time the purchaser signs the executory
12-15 contract that is printed in 14-point boldface type or 14-point
12-16 uppercase typewritten letters and that reads substantially similar
12-17 to the following:
12-18 NOTICE OF CANCELLATION
12-19 (date of contract)
12-20 YOU MAY CANCEL THE EXECUTORY CONTRACT FOR ANY
12-21 REASON WITHOUT ANY PENALTY OR OBLIGATION BY (date).
12-22 (1) YOU MUST SEND BY TELEGRAM OR CERTIFIED OR
12-23 REGISTERED MAIL, RETURN RECEIPT REQUESTED, OR DELIVER
12-24 IN PERSON A SIGNED AND DATED COPY OF THIS CANCELLATION
12-25 NOTICE OR ANY OTHER WRITTEN NOTICE TO (Name of Seller)
12-26 AT (Seller's Address) BY (date).
12-27 (2) THE SELLER SHALL, NOT LATER THAN THE 10TH
13-1 DAY AFTER THE DATE THE SELLER RECEIVES YOUR
13-2 CANCELLATION NOTICE:
13-3 (A) RETURN THE EXECUTED CONTRACT AND ANY
13-4 PROPERTY EXCHANGED OR PAYMENTS MADE BY YOU UNDER THE
13-5 CONTRACT; AND
13-6 (B) CANCEL ANY SECURITY INTEREST ARISING
13-7 OUT OF THE CONTRACT.
13-8 I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF CANCELLATION
13-9 FORM.
13-10 ____________________ __________________
13-11 (Date) (Purchaser's Signature)
13-12 I HEREBY CANCEL THIS CONTRACT.
13-13 ____________________ __________________
13-14 (Date) (Purchaser's Signature)
13-15 (e) The seller may not request the purchaser to sign a
13-16 waiver of receipt of the notice of cancellation form required by
13-17 this section.
13-18 Sec. 5.098. PURCHASER'S RIGHT TO PLEDGE INTEREST IN PROPERTY
13-19 ON CONTRACTS ENTERED INTO BEFORE SEPTEMBER 1, 1995. (a) On an
13-20 executory contract entered into before September 1, 1995, a
13-21 purchaser may pledge the interest in the property, which accrues
13-22 pursuant to Section 5.101, only to obtain a loan for improving the
13-23 safety of the property or any improvements on the property.
13-24 (b) Loans that improve the safety of the property and
13-25 improvements on the property include loans for:
13-26 (1) improving or connecting a residence to water
13-27 service;
14-1 (2) improving or connecting a residence to a
14-2 wastewater system;
14-3 (3) building or improving a septic system;
14-4 (4) structural improvements in the residence; and
14-5 (5) improved fire protection.
14-6 Sec. 5.099. RECORDING REQUIREMENTS. (a) Except as provided
14-7 by Subsection (b), the seller shall record the executory contract,
14-8 including the attached disclosure statement required by Section
14-9 5.094, as prescribed by Title 3.
14-10 (b) Section 12.002(c) does not apply to an executory
14-11 contract filed for record under this section.
14-12 (c) If the executory contract is terminated for any reason,
14-13 the seller shall record the instrument that terminates the
14-14 contract.
14-15 (d) The county clerk shall collect the filing fee prescribed
14-16 by Section 118.011, Local Government Code.
14-17 Sec. 5.100. ANNUAL ACCOUNTING STATEMENT. (a) The seller
14-18 shall provide the purchaser with an annual statement in January of
14-19 each year for the term of the executory contract. If the seller
14-20 mails the statement to the purchaser, the statement must be
14-21 postmarked not later than January 31.
14-22 (b) The statement must include the following information:
14-23 (1) the amount paid under the contract;
14-24 (2) the remaining amount owed under the contract;
14-25 (3) the number of payments remaining under the
14-26 contract; and
14-27 (4) the amounts paid to taxing authorities on the
15-1 purchaser's behalf if collected by the seller.
15-2 (c) If the seller fails to comply with Subsection (a), the
15-3 purchaser may:
15-4 (1) notify the seller that the purchaser has not
15-5 received the statement and will deduct 15 percent of each monthly
15-6 payment due until the statement is received; and
15-7 (2) not earlier than the 25th day after the date the
15-8 purchaser provides the seller notice under this subsection, deduct
15-9 15 percent of each monthly payment due until the statement is
15-10 received by the purchaser.
15-11 (d) A purchaser who makes a deduction under Subsection (c)
15-12 is not required to reimburse the seller for the amount deducted.
15-13 Sec. 5.101. EQUITY PROTECTION; SALE OF PROPERTY. (a) If a
15-14 purchaser defaults after the purchaser has paid 40 percent or more
15-15 of the amount due or the equivalent of 48 monthly payments under
15-16 the executory contract, the seller is granted the power to sell,
15-17 through a trustee designated by the seller, the purchaser's
15-18 interest in the property as provided by this section. The seller
15-19 may not enforce the remedy of rescission or of forfeiture and
15-20 acceleration.
15-21 (b) The seller shall notify a purchaser of a default under
15-22 the contract and allow the purchaser at least 60 days after the
15-23 date notice is given to cure the default. The notice must be
15-24 provided as prescribed by Section 5.062 except that the notice must
15-25 substitute the following statement:
15-26 NOTICE
15-27 YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO
16-1 BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION
16-2 SPECIFIED IN THIS NOTICE BY (date) A TRUSTEE DESIGNATED
16-3 BY THE SELLER HAS THE RIGHT TO SELL YOUR PROPERTY AT A
16-4 PUBLIC AUCTION.
16-5 (c) The trustee or a substitute trustee designated by the
16-6 seller must post, file, and serve a notice of sale and the county
16-7 clerk shall record and maintain the notice of sale as prescribed by
16-8 Section 51.002. A notice of sale is not valid unless it is given
16-9 after the period to cure has expired.
16-10 (d) The trustee or a substitute trustee designated by the
16-11 seller must conduct the sale as prescribed by Section 51.002. The
16-12 seller must convey to a purchaser at a sale conducted under this
16-13 section fee simple title to the real property.
16-14 (e) The remaining balance of the amount due under the
16-15 executory contract is the debt for purposes of a sale under this
16-16 section. If the proceeds of the sale exceed the debt amount, the
16-17 seller shall disburse the excess funds to the purchaser under the
16-18 executory contract. If the proceeds of the sale are insufficient
16-19 to extinguish the debt amount, the seller's right to recover the
16-20 resulting deficiency is subject to Sections 51.003, 51.004, and
16-21 51.005 unless a provision of the executory contract releases the
16-22 purchaser under the contract from liability.
16-23 (f) The affidavit of a person knowledgeable of the facts
16-24 that states that the notice was given and the sale was conducted as
16-25 provided by this section is prima facie evidence of those facts in
16-26 an action involving a bona fide purchaser at the sale or a
16-27 subsequent bona fide purchaser for value if the purchaser under the
17-1 executory contract is not in possession of the property and if the
17-2 period to cure the default has expired. A bona fide purchaser for
17-3 value who relies on an affidavit under this subsection acquires
17-4 title to the property free and clear of the executory contract.
17-5 (g) If a purchaser defaults before the purchaser has paid 40
17-6 percent of the amount due or the equivalent of 48 monthly payments
17-7 under the executory contract, the seller may enforce the remedy of
17-8 rescission or of forfeiture and acceleration of the indebtedness if
17-9 the seller complies with the notice requirements of Sections 5.061
17-10 and 5.062.
17-11 Sec. 5.102. TITLE TRANSFER. (a) The seller shall transfer
17-12 recorded, legal title of the property covered by the executory
17-13 contract to the purchaser not later than the 30th day after the
17-14 date the seller receives the purchaser's final payment due under
17-15 the contract.
17-16 (b) A seller who violates Subsection (a) is subject to a
17-17 penalty of:
17-18 (1) $250 a day for each day the seller fails to
17-19 transfer the title to the purchaser during the period that begins
17-20 the 31st day and ends the 90th day after the date the seller
17-21 receives the purchaser's final payment due under the contract; and
17-22 (2) $500 a day for each day the seller fails to
17-23 transfer title to the purchaser after the 90th day after the date
17-24 the seller receives the purchaser's final payment due under the
17-25 contract.
17-26 (c) In this section, "seller" includes a successor,
17-27 assignee, personal representative, executor, or administrator of
18-1 the seller.
18-2 Sec. 5.103. LIABILITY FOR DISCLOSURES. For purposes of this
18-3 subchapter, a disclosure required by this subchapter that is made
18-4 by a seller's agent is a disclosure made by the seller.
18-5 SECTION 4. Section 2306.092, Government Code, is amended to
18-6 read as follows:
18-7 Sec. 2306.092. Duties. The department, through the
18-8 community affairs division, shall:
18-9 (1) maintain communication with local governments and
18-10 act as an advocate for local governments at the state and federal
18-11 levels;
18-12 (2) assist local governments with advisory and
18-13 technical services;
18-14 (3) provide financial aid to local governments and
18-15 combinations of local governments for programs that are authorized
18-16 to receive assistance;
18-17 (4) provide information about and referrals for state
18-18 and federal programs and services that affect local governments;
18-19 (5) administer, conduct, or jointly sponsor
18-20 educational and training programs for local government officials;
18-21 (6) conduct research on problems of general concern to
18-22 local governments;
18-23 (7) collect, publish, and distribute information
18-24 useful to local governments, including information on:
18-25 (A) local government finances and employment;
18-26 (B) housing;
18-27 (C) population characteristics; and
19-1 (D) land-use patterns;
19-2 (8) encourage cooperation among local governments as
19-3 appropriate;
19-4 (9) advise and inform the governor and the legislature
19-5 about the affairs of local governments and recommend necessary
19-6 action;
19-7 (10) assist the governor in coordinating federal and
19-8 state activities affecting local governments;
19-9 (11) administer, as appropriate:
19-10 (A) state responsibilities for programs created
19-11 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
19-12 Section 2701 et seq.);
19-13 (B) programs assigned to the department under
19-14 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
19-15 and
19-16 (C) other federal acts creating economic
19-17 opportunity programs assigned to the department;
19-18 (12) develop a consumer education program to educate
19-19 consumers on executory contract transactions for conveyance of real
19-20 property used or to be used as the consumer's residence;
19-21 (13) adopt rules that are necessary and proper to
19-22 carry out programs and responsibilities assigned by the legislature
19-23 or the governor; and
19-24 (14) <(13)> perform other duties relating to local
19-25 government that are assigned by the legislature or the governor.
19-26 SECTION 5. The change in law made by Section 2 of this Act
19-27 applies to enforcement, cancellation, or rescission of executory
20-1 contracts on which the purchaser defaults on or after the effective
20-2 date of this Act regardless of when the contract was entered. A
20-3 purchaser who is in default before the effective date of this Act
20-4 is covered by the law in effect when the default occurred, and the
20-5 former law is continued in effect for that purpose.
20-6 SECTION 6. This Act takes effect September 1, 1995, except
20-7 that:
20-8 (1) Subchapter E, Chapter 5, Property Code, as added
20-9 by this Act, applies in a county beginning on a date designated by
20-10 the Texas Department of Housing and Community Affairs, which date
20-11 must be at least 30 days after the date on which notice is given to
20-12 the county clerk under that subchapter, but not later than November
20-13 1, 1995; and
20-14 (2) the Texas Department of Housing and Community
20-15 Affairs shall act as soon as practicable to make the initial
20-16 determinations under Subchapter E, Chapter 5, Property Code, as
20-17 added by this Act, and shall publish and give notice of those
20-18 determinations not later than October 1, 1995.
20-19 SECTION 7. The importance of this legislation and the
20-20 crowded condition of the calendars in both houses create an
20-21 emergency and an imperative public necessity that the
20-22 constitutional rule requiring bills to be read on three several
20-23 days in each house be suspended, and this rule is hereby suspended.