79R2516 HLT-D

By:  Dawson                                                       H.B. No. 822



A BILL TO BE ENTITLED

AN ACT

relating to certain sellers of homes offering a benefit contingent 
on the use of a specific mortgage lender.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 35, Business & Commerce 
Code, is amended by adding Section 35.42 to read as follows:
	Sec. 35.42.  SELLER PROHIBITED FROM MAKING BENEFIT 
CONTINGENT ON USE OF MORTGAGE LENDER.  (a)  A person who builds and 
sells a single-family residence may not offer or provide a benefit 
to a potential purchaser of the residence as consideration for the 
purchaser's agreement to use a mortgage lender specified by the 
person for a loan to purchase the residence.
	(b)  A person who violates Subsection (a) is liable to the 
purchaser for:
		(1)  any damages arising from the violation; and                       
		(2)  reasonable attorney's fees and costs.                             
	(c)  A purchaser may not waive the right to sue under 
Subsection (b). 
	SECTION 2.  This Act applies only to the sale of a 
single-family residence closed on or after the effective date of 
this Act.
	SECTION 3.  This Act takes effect September 1, 2005.