SRC-CDH S.B. 107 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 107
By: Patterson
State Affairs
1-27-97
As Filed


DIGEST 

Currently, there are no provisions mandating homestead foreclosure
information for the sale of residential real estate.  This bill requires
notice to be given at closing specifically stating the circumstances under
which homeowners can lose their homes to foreclosure.     

PURPOSE

As proposed, S.B. 107 requires a seller of certain residential real
property to give a written notice to the purchaser of the property before
the transfer of the property.    

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 5A, Property Code, by adding Section 5.010, as
follows: 

Sec. 5.010. NOTICE OF HOMESTEAD FORECLOSURE INFORMATION.  Requires a
seller of residential real property comprising not more than one dwelling
unit located in this state to give a written notice to the purchaser of
the property before the transfer of the property.  Sets forth the required
format and content of the notice.  Establishes that 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
and Commerce Code, and is actionable in a public or private suit brought
under Subchapter E, Business and Commerce Code, and entitles the purchaser
to cancel and rescind the purchase contract and receive a full refund of
any purchase payment made to the seller. 

SECTION 2. Effective date:  September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.