SRC-VRA C.S.S.B. 1527 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1527
78R12474 KCR-DBy: Brimer
Jurisprudence
4/23/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Prior to 2001, a seller under a contract for deed could recover his
property when a default occurred within 15 days if the equity was 10
percent or less, or longer if the equity was more.  In 2001, this changed
to 60 days regardless of the amount of equity.  C.S.S.B. 1527 decreases to
30 days the period in which to cure a default. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 5.064, Property Code, to authorize a seller to
enforce the remedy of rescission or of forfeiture and acceleration against
a purchaser in default under an executory contract if the seller notifies
the purchaser of the purchaser's right to cure the default within the
30-day, rather than 60-day, period described by Section 5.065, Property
Code, or the purchaser fails to cure the default within the 30-day, rather
than 60-day, period.  

SECTION 2.  Amends Section 5.065, Property Code, to decrease the time
period for a purchaser to cure a default under an executory contract for
conveyance from the 60th, to the 30th, day after the date notice is given.

SECTION 3.(a)  Effective date:  September 1, 2003.
  (b)  Makes application of this Act prospective.