79R1296 AJA-D
By: Giddings H.B. No. 1021
A BILL TO BE ENTITLED
AN ACT
relating to the right of first refusal in certain real estate
transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.014 to read as follows:
Sec. 5.014. PROHIBITED FEES. (a) A person who has a right
of first refusal in real property may not charge a fee for declining
to exercise that right, such as a fee for providing written evidence
of the declination.
(b) A title company shall accept written evidence that a
person has solicited a fee under Subsection (a) as proof that the
person has waived the right of first refusal.
SECTION 2. Except as provided by a contract entered into
before the effective date of this Act, Section 5.014, Property
Code, as added by this Act, applies only to a fee that is solicited
on or after the effective date of this Act for declining the
exercise of a right of first refusal.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.