By Coleman H.B. No. 2056
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to residential construction projects.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 53.251(b), Property Code, is amended to
1-5 read as follows:
1-6 (b) A person must comply with this subchapter in addition to
1-7 the other applicable provisions of this chapter if that person
1-8 intends to perfect a mechanic's lien that arises from a claim
1-9 resulting from a residential construction project.
1-10 SECTION 2. Section 53.255(a), Property Code, is amended to
1-11 read as follows:
1-12 (a) Before a residential construction contract is executed
1-13 by the owner, the original contractor who intends to seek
1-14 protection under this subchapter shall deliver to the owner a
1-15 disclosure statement described in this section.
1-16 SECTION 3. Section 53.257, Property Code, is amended to read
1-17 as follows:
1-18 (a) If the owner is obtaining third-party financing for the
1-19 construction of improvements under a residential construction
1-20 contract, the lender shall deliver to the owner and the original
1-21 contractor all documentation relating to the closing of the loan
1-22 not later than three [
one] business days before the date of the
2-1 closing. If a bona fide emergency of another good cause exists and
2-2 the lender obtains the written consent of the owner, the lender may
2-3 provide the documentation to the owner or the lender may modify
2-4 previously provided documentation on the date of closing.
2-5 SECTION 4. Section 53.259, Property Code, is amended by
2-6 amending Subsection (a) and Subsection (b) to read as follows:
2-7 (a) In connection with [ As a condition of] final payment
2-8 under a residential construction contract, the original contractor
2-9 shall, at the time the final payment is tendered, execute and
2-10 deliver to the owner's agent, an affidavit stating that the
2-11 original contractor has paid or will pay each person pursuant to
2-12 their contract with the original contractor [ in full] for all labor
2-13 and materials used in the construction of improvements on the real
2-14 property. If the original contractor has not paid each person in
2-15 full, the original contractor shall state in the affidavit the
2-16 total amount believed to be owed [ and the name and, if known, the
2-17 address and telephone number of each person to whom a payment is
2-18 owed] and agree to protect the owner and the owner's real property
2-19 from any mechanic's liens.
2-20 (b) The seller of any real property on which a structure of
2-21 not more than four units is constructed and that is intended as the
2-22 principal place of residence for the purchaser shall, at the
2-23 closing of the purchase of the real property, execute and deliver
2-24 to the purchaser, or the purchaser's agent, an affidavit stating
2-25 that the seller has paid or will pay each person pursuant to their
2-26 contract with the seller [ in full] for all labor and materials used
3-1 in the construction of improvements on the real property and that
3-2 the seller is not indebted to any person by reason of any
3-3 construction. In the event that the seller has not paid each
3-4 person pursuant to their contract with the seller [ in full], the
3-5 seller shall state in the affidavit the total amount owed [ and the
3-6 name and, if known, the address and telephone number of each person
3-7 to whom a payment is owed] and agree to protect the purchaser and
3-8 the real property from any mechanic's liens.
3-9 SECTION 5. This Act takes effect September 1, 2001.