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A BILL TO BE ENTITLED
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AN ACT
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relating to certain construction liens under the Texas Residential |
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Construction Commission Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 420.002, Property Code, is amended to |
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read as follows: |
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Sec. 420.002. REQUIRED CONTRACT PROVISIONS. (a) In a |
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contract for the construction of a new home or an improvement to an |
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existing home required to be registered under Section 426.003, the |
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contract is not enforceable against a homeowner unless the |
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contract: |
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(1) contains the builder's name and certificate of |
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registration number; and |
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(2) contains the notice required by Section 420.001. |
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(b) Notwithstanding Subsection (a), a builder's failure to |
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comply with that subsection does not invalidate a lien of an entity |
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that: |
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(1) provided third-party financing to a homeowner for |
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the construction of a new home or an improvement to an existing home |
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under a residential construction contract; or |
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(2) renewed and extended financing for a purpose |
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described by Subdivision (1). |
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SECTION 2. This Act takes effect September 1, 2009. |