79R12304 AJA-D


By:  Farabee                                                      H.B. No. 371

Substitute the following for H.B. No. 371:                                    

By:  Nixon                                                    C.S.H.B. No. 371



A BILL TO BE ENTITLED

AN ACT

relating to liquidated damages for violating certain requirements 
relating to executory contracts for the conveyance of certain real 
property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Section 5.077, Property Code, is 
amended to read as follows:
	Sec. 5.077.  ANNUAL ACCOUNTING STATEMENT; DAMAGES; 
CONTRACTUAL NOTICE REQUIRED.
	SECTION 2.  Section 5.077, Property Code, is amended by 
amending Subsection (c) and adding Subsections (d), (e), and (f) to 
read as follows:
	(c)  A seller who fails to comply with Subsection (a) is 
liable to the purchaser for:
		(1)  liquidated damages in the amount of:                              
			(A)  $250 [a day] for each annual statement [day 
after January 31 that] the seller fails to provide to the purchaser 
within the time required by Subsection  (a) [with the statement]; 
and
			(B)  the lesser of:                                                   
				(i)  $20 a day for each day after January 31 
that the seller does not provide the statement; or
				(ii)  the purchase price of the property; 
and                      
		(2)  reasonable attorney's fees.                                              
	(d)  In addition to other remedies provided to a purchaser, a 
seller who fails to timely comply with Subsection (a) is barred from 
claiming the purchaser failed to tender any sum due to the seller or 
other person under the contract:
		(1)  before the most recent date a statement was due 
under Subsection (a); and
		(2)  after the later of:                                               
			(A)  the latest date any previous statement was 
provided to the purchaser under Subsection (a); or
			(B)  the date the contract was entered into.                          
	(e)  The executory contract must include a provision that:              
		(1)  states that:                                                      
			(A)  the seller is required to provide an annual 
statement under this section on or before January 31 of each year 
for the term of the contract; and
			(B)  the buyer has the right to request that the 
seller provide the statement if the buyer does not receive the 
statement on or before January 31 of the year it is due; and
		(2)  lists the items that must be included in the 
statement under Subsection (b).
	(f)  A seller who fails to include the contract provision 
required by Subsection (e) is liable to the purchaser for 
liquidated damages in the amount of $250.
	SECTION 3.  (a)  Section 5.077(d), Property Code, as added by 
this Act, applies only to the act of a seller who fails to timely 
provide an annual statement as required by Section 5.077(a), 
Property Code, on or after the effective date of this Act.  The act 
of a seller who fails to timely provide an annual statement as 
required by Section 5.077(a), Property Code, before the effective 
date of this Act is covered by the law in effect when the act was 
committed, and the former law is continued in effect for that 
purpose.
	(b)  Sections 5.077(e) and (f), Property Code, as added by 
this Act, apply only to an executory contract entered into on or 
after the effective date of this Act.  An executory contract entered 
into before the effective date of this Act is governed by the law in 
effect immediately before that date, and that law is continued in 
effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.