Amend HB 2577 by adding the following appropriately numbered
sections to the bill and renumbering subsequent sections of the
bill appropriately:
      SECTION __. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.010 to read as follows:
      Sec. 5.010.  NOTICE OF HOMESTEAD FORECLOSURE INFORMATION. (a)
A seller of residential real property comprising not more than one
dwelling unit located in this state shall give to the purchaser of
the property before the transfer of the  property a written notice
as prescribed by this section.
      (b)  The notice must be conspicuous and printed in 14-point
bold-faced type and read substantially similar to the following:
            NOTICE OF HOMESTEAD FORECLOSURE INFORMATION
       CONCERNING THE PROPERTY AT (street address and city)
WARNING:  UNDER TEXAS LAW, YOU MAY LOSE THIS PROPERTY THROUGH
FORECLOSURE, EVEN IF IT IS DESIGNATED AS HOMESTEAD PROPERTY, IF YOU
FAIL TO TIMELY PAY ANY OF THE FOLLOWING OBLIGATIONS:
            (1)  a purchase money obligation secured by a lien on
this property;
            (2)  a home improvement contract obligation secured by
a lien on this property;
            (3)  a property owners' association assessment and
certain related costs secured by a lien on this property, including
a lien provided for in restrictive covenants applicable to this
property;
            (4)  ad valorem property taxes assessed against this
property;
            (5)  federal income taxes owed by you; or
            (6)  a lien on this property that preexists your
purchase of this property and that was not paid at the time you
purchased this property.
      Depending on state law or the terms of the agreement relating
to the financial obligation, a financial obligation listed above
may be foreclosed by judicial foreclosure, which would require the
filing of a lawsuit against you, or by nonjudicial foreclosure,
which would require notifying you but would not require the filing
of a lawsuit against you.  In certain circumstances, attorney's
fees and other costs associated with the foreclosure may be added
to the original obligation, which would increase the amount of the
debt owed.
      If you cease using this home as your primary residence or
otherwise lose your homestead exemption, the failure to timely pay
financial obligations other than those listed above may result in
the foreclosure of this property.
      I UNDERSTAND THAT I CAN LOSE THIS PROPERTY THROUGH
FORECLOSURE FOR THE REASONS STATED ABOVE.
Date:__________            ________________________________________
                           Signature of Purchaser
                           Print Name:_________________________
                           Property Address:_____________________
      (c)  The seller's failure to provide the notice required by
this section is a false, misleading, or deceptive act or practice
within the meaning of Section 17.46, Business & Commerce Code, and
is actionable in a public or private suit brought under Subchapter
E, Chapter 17, Business & Commerce Code.
      SECTION __. The change in law made by Section 5.010, Property
Code, as added by this Act, applies only to a real property
transaction described by Section 5.010, Property Code, as added by
this Act, in which the transfer of the property occurs on or after
the effective date of this Act.