SRC-LBB S.B. 1647 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1647
By: Staples
Business & Commerce
6/24/2003
Enrolled


DIGEST AND PURPOSE 
 
Timeshare transactions include the sale, exchange, option, lease, or
rental of a timeshare interest. Most developers of timeshare properties
use standardized contract forms, closing documents, and disclosure
documents for the transfer of timeshare interests in their timeshare
resorts.  S.B. 1647 authorizes a timeshare developer to charge a fee for
completion of the forms and clarifies that the completion and the charging
of a fee by the developer will not constitute the unauthorized or illegal
practice of law if the contract or document has been accepted by the Texas
Real Estate Commission for use in the particular type of transaction
involved, or prepared by a Texas attorney for such purpose. 

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 Subchapter D, Chapter 221, Property Code, by adding
Section 221.036, as follows: 

Sec.  221.036.  DEVELOPER PREPARATION AND COMPLETION OF DOCUMENTS.  (a)
Authorizes a developer to charge a reasonable fee for completion of a
contract form, closing document, or disclosure document required for the
sale, exchange, option, lease, or rental of a timeshare interest. 

(b)  Provides that the action of a developer under Subsection (a) does not
constitute the unauthorized or illegal practice of law in this state if
the contract or document has been accepted by the Texas Real Estate
Commission or prepared by an attorney licensed to practice law in this
state for use in the particular type of transaction involved. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.