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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of accounting statements by a seller who |
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finances the sale of residential real property owned by the seller. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section 5.019 to read as follows: |
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Sec. 5.019. ANNUAL ACCOUNTING STATEMENTS REQUIRED FOR |
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SELLER-FINANCED SALES OF RESIDENTIAL REAL PROPERTY. (a) This |
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section applies only to a seller of residential real property who |
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finances the sale of residential real property owned by the seller |
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by delivering title to the property to the purchaser in exchange for |
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an agreement by the purchaser to pay the purchase price to the |
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seller by periodic installments. |
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(b) A seller who enters into a transaction described by |
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Subsection (a) shall provide the purchaser with an annual |
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accounting statement in January of each year until the property is |
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fully paid for by the purchaser. If the seller mails the statement |
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to the purchaser, the statement must be postmarked not later than |
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January 31. |
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(c) The statement required by Subsection (b) must include |
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the following information: |
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(1) the total amount paid by the purchaser towards the |
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price of the residential real property; |
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(2) the remaining amount owed to the seller; |
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(3) the number of payments remaining; and |
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(4) the amounts paid to taxing authorities on the |
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purchaser's behalf if collected by the seller. |
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(d) A seller must provide, at no cost to the purchaser, a |
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written statement of the amount of the purchase price still owed by |
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the purchaser not later than the 10th day after the date the |
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purchaser makes a written request for the statement. |
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(e) A seller who fails to comply with Subsection (b) is |
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liable to the purchaser for: |
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(1) actual damages; |
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(2) additional damages in the amount of $500 for each |
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annual statement the seller fails to provide to the purchaser |
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within the time required by Subsection (b); and |
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(3) reasonable attorney's fees. |
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(f) A seller who fails to comply with Subsection (d) is |
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liable to the purchaser for: |
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(1) actual damages; |
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(2) additional damages in the amount of $100 for each |
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statement the seller fails to provide to the purchaser within the |
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time required by Subsection (d); and |
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(3) reasonable attorney's fees. |
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(g) A purchaser may deduct an amount owed to the purchaser |
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by the seller under Subsection (e) or (f) without formal action. |
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(h) A seller who fails to comply with Subsection (b) or (d) |
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after receiving a written notice from the purchaser of the seller's |
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violation may not controvert a sworn statement from the purchaser |
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regarding a fact required to be reflected in the statement. |
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(i) An agreement that purports to waive a right or exempt a |
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party from a liability or duty under this section is void and |
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unenforceable. |
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SECTION 2. The change in law made by this Act applies to a |
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financing agreement entered into before, on, or after the effective |
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date of this Act. |
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SECTION 3. This Act takes effect September 1, 2007. |