79R8244 HLT-F

By:  Raymond                                                      H.B. No. 3065



A BILL TO BE ENTITLED

AN ACT

relating to certain arrangements in the sale of residential real 
property.  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 2, Business & Commerce Code, is amended by 
adding Chapter 21 to read as follows:
	CHAPTER 21.  PROHIBITED ARRANGEMENTS IN SALE OF RESIDENTIAL REAL 
PROPERTY
	Sec. 21.001.  DEFINITIONS.  In this chapter:                            
		(1)  "Affiliate" means a company that is directly or 
indirectly controlled by a seller or a company that directly or 
indirectly controls a seller. A company directly or indirectly 
controls a seller, and a seller indirectly or directly controls a 
company if, alone or with other persons or through one or more 
subsidiaries, the company or seller:
			(A)  owns, controls, or holds the power or proxies 
to vote more than 10 percent of the voting stock or voting rights of 
the company or seller;
			(B)  controls in any manner the election of the 
board of directors or managers of a company  or seller; or
			(C)  is a general partner or manager of the 
company or seller.      
		(2)  "Company" means a corporation, general 
partnership, limited partnership, limited liability company, joint 
venture, or other legal entity or association.
		(3)  "Residential real property" means property that is 
improved with a one to four family residence or is intended to be 
improved with a one to four family residence.
		(4)  "Seller" means a person who in any consecutive 
12-month period acts as seller of residential real property owned 
by the person in four or more transactions.
	Sec. 21.002.  PROHIBITED ACTS.  A seller may not sell or 
offer to make a loan, extend credit, lease or sell property, or 
provide a service or other benefit to a buyer, including fixing or 
varying required consideration, on the condition that the buyer 
obtain a loan, additional credit, other property, or other service 
from:
		(1)  the seller;                                                       
		(2)  an affiliate; or                                                  
		(3)  a specified company or person, if the requirement 
that the buyer use a specified company or person substantially 
reduces competition.
	Sec. 21.003.  PRIVATE CAUSE OF ACTION.  (a)  A buyer or 
prospective buyer who has been injured by a violation of this 
chapter or another person whose business has been injured by a 
violation of this chapter may bring an action against a seller or an 
affiliate for:
		(1)  actual damages;                                                   
		(2)  an injunction against a violation or continued 
violation of this chapter; or
		(3)  both.                                                             
	(b)  If a trier of fact finds that the actions of the seller 
or an affiliate were wilful or flagrant, the injured person is 
entitled to three times the actual damages incurred as a result of a 
violation of this chapter.
	(c)  A plaintiff who prevails in an action under this chapter 
is entitled to court costs and reasonable attorney's fees.
	SECTION 2.  Chapter 21, Business & Commerce Code, as added by 
this Act, applies only to a sale of or offer to sell residential 
real property made on or after the effective date of this Act.  An 
offer or sale made before the effective date of this Act is covered 
by the law in effect on the date the offer or sale was made, and the 
former law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.