SRC-JFA S.B. 1803 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1803
By: Wentworth
Jurisprudence
4-10-97
As Filed


DIGEST 

Currently, under Section 12.002(c), Property Code, developers are
prohibited from selling lots using the subdivision description until the
plat is filed for record.  If a developer desires to install a
subdivision, the developer usually agrees to subordinate the land and
prove there is a market for the project by pre-selling a certain
percentage of the lots.  This underwriting agreement may place the
developer in direct conflict with Section 12.002(c), Property Code.  This
bill would provide that Subsection (c) does not apply to using a
subdivision's description in a contract to convey real property before the
plat or replat of the subdivision is approved and is filed for record with
the county clerk if the conveyance is expressly contingent on approval and
recording of the final plat and the purchaser is not given use or
occupancy of the real property conveyed before the recording of the final
plat.   
    
PURPOSE

As proposed, S.B. 1803 authorizes the use of subdivision descriptions in
certain contracts conveying real 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 Section 12.002, Property Code, by amending Subsection
(c) and by adding Subsection (d), to provide that Subsection (c) does not
apply to using a subdivision's description in a contract to convey real
property before the plat or replat of the subdivision is approved and is
filed for record with the county clerk if the conveyance is expressly
contingent on approval and recording of the final plat; and the purchaser
is not given use or occupancy of the real property conveyed before the
recording of the final plat.  Makes conforming changes.   

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.