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