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A BILL TO BE ENTITLED
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AN ACT
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relating to notice required before and period to vacate after |
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foreclosure sale of real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 24.005, Property Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) If the occupant is a tenant at will or by sufferance, the |
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landlord must give the tenant at least three days' written notice to |
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vacate before the landlord files a forcible detainer suit unless |
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the parties have contracted for a shorter or longer notice period in |
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a written lease or agreement. If a building is purchased at a tax |
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foreclosure sale or a trustee's foreclosure sale under a lien |
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superior to the tenant's lease and the tenant timely pays rent and |
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is not otherwise in default under the tenant's lease after |
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foreclosure, the purchaser must give a residential tenant of the |
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building at least 60 [30] days' written notice to vacate if the |
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purchaser chooses not to continue the lease. The tenant is |
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considered to timely pay the rent under this subsection if, during |
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the month of the foreclosure sale, the tenant pays the rent for that |
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month to the landlord before receiving any notice that a |
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foreclosure sale is scheduled during the month or pays the rent for |
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that month to the foreclosing lienholder or the purchaser at |
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foreclosure not later than the fifth day after the date of receipt |
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of a written notice of the name and address of the purchaser that |
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requests payment. Before a foreclosure sale, a foreclosing |
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lienholder may give written notice to a tenant stating that a |
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foreclosure notice has been given to the landlord or owner of the |
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property and specifying the date of the foreclosure. |
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(b-1) A purchaser of a property at a foreclosure sale for |
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which notice was given under Section 51.002(b) shall deliver to the |
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tenant not later than 24 hours after the time of the foreclosure |
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sale a notice that states the tenant's rights under this chapter and |
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Chapter 51. The attorney general shall prescribe the contents of |
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the notice. The purchaser may require the tenant to vacate the |
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property before the period prescribed by Section 51.002(i) only for |
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failure to pay rent or other payment due under the lease agreement, |
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including a late fee, as of the date of sale. |
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SECTION 2. Section 51.002, Property Code, is amended by |
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amending Subsections (b) and (d) and adding Subsections (d-1), (i), |
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and (j) to read as follows: |
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(b) Except as provided by Subsection (b-1), notice of the |
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sale, which must include a statement of the earliest time at which |
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the sale will begin, must be given at least 21 days before the date |
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of the sale by: |
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(1) posting at the courthouse door of each county in |
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which the property is located a written notice designating the |
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county in which the property will be sold; |
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(2) filing in the office of the county clerk of each |
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county in which the property is located a copy of the notice posted |
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under Subdivision (1); and |
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(3) serving written notice of the sale by certified |
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mail and regular mail on each debtor who, according to the records |
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of the mortgage servicer of the debt, is obligated to pay the debt. |
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(d) Notwithstanding any agreement to the contrary, the |
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mortgage servicer of the debt shall serve a debtor in default under |
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a deed of trust or other contract lien on real property used as the |
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debtor's residence with written notice by regular mail and |
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certified mail stating that the debtor is in default under the deed |
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of trust or other contract lien and giving the debtor at least 45 |
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[20] days to cure the default before notice of sale can be given |
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under Subsection (b). The attorney general shall prescribe the |
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contents of the notice. The entire calendar day on which the notice |
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required by this subsection is given, regardless of the time of day |
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at which the notice is given, is included in computing the 45-day |
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[20-day] notice period required by this subsection, and the entire |
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calendar day on which notice of sale is given under Subsection (b) |
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is excluded in computing the 45-day [20-day] notice period. |
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(d-1) In addition to the notice provided by Subsection (d), |
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a mortgage servicer of the debt shall serve the debtor with a |
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written notice by regular and certified mail under this subsection. |
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The notice must be printed on a separate sheet of canary yellow or a |
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similarly colored yellow paper that is 8-1/2 by 11 inches or larger |
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and affixed to the notice of default provided under Subsection (d). |
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The attorney general shall prescribe the contents of the notice. |
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The notice must include the following: |
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(1) a statement that the notice provided by the |
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mortgage servicer is required by law; |
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(2) a description of the process of foreclosure on a |
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contract lien; |
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(3) a statement that the debtor in default has 45 days |
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to cure the default as provided by Subsection (d); |
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(4) a description of the options available to the |
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debtor in default to prevent the foreclosure; |
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(5) a description of resources available to the debtor |
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in default to assist in preventing the foreclosure; |
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(6) a list of resources the debtor may contact for |
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assistance in filing a complaint concerning the foreclosure |
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process; |
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(7) a statement that the debtor must serve a copy of |
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the notice of sale on each tenant as prescribed by Section 51.0022; |
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and |
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(8) the name, telephone number, facsimile number, and |
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e-mail address of a person authorized to act for the servicer of the |
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debt relating to the debt. |
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(i) If a sale of property occurs, notwithstanding Chapter |
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24: |
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(1) the tenant of the debtor is not required to vacate |
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the property before the 61st day after the date of the sale, |
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provided that the tenant: |
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(A) timely pays rent to the new property owner; |
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(B) maintains the property in good order; and |
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(C) maintains a liability insurance policy |
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during the term of the holdover period; and |
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(2) the debtor is not required to vacate the property |
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before the 14th day after the date of the sale. |
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(j) A debtor who retains possession of the property during |
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the period described by Subsection (i)(2): |
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(1) may not destroy, damage, impair, allow to |
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deteriorate, or commit waste on the property; and |
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(2) is liable: |
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(A) to the purchaser, for the damage caused by a |
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violation of Subdivision (1); and |
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(B) to the injured party, for any injury to an |
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individual or damage to any property occurring during the period of |
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possession described by Subsection (i)(2). |
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SECTION 3. Chapter 51, Property Code, is amended by adding |
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Section 51.0022 to read as follows: |
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Sec. 51.0022. NOTICE OF SALE TO TENANT. Not later than the |
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seventh day after the date a debtor receives a notice of sale under |
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Section 51.002(b), the debtor shall serve a copy of the notice on |
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each tenant of the property by any one of the following methods: |
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(1) personal delivery to the tenant; |
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(2) certified mail, return receipt requested, to the |
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tenant; or |
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(3) leaving the notice inside the dwelling, as defined |
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by Section 92.001, in a conspicuous place if notice in that manner |
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is authorized in a written lease. |
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SECTION 4. (a) Effective September 1, 2011, Subsection |
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(i), Section 51.002, Property Code, as added by Section 2 of this |
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Act, is amended to read as follows: |
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(i) If a sale of property occurs, notwithstanding Chapter |
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24: |
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(1) the tenant of the debtor is not required to vacate |
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the property before the 31st [61st] day after the date of the sale, |
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provided that the tenant: |
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(A) timely pays rent to the new property owner; |
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(B) maintains the property in good order; and |
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(C) maintains a liability insurance policy |
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during the term of the holdover period; and |
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(2) the debtor is not required to vacate the property |
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before the 14th day after the date of the sale. |
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(b) Effective September 1, 2011, Subsection (b), Section |
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24.005, Property Code, as added by Section 1 of this Act, is amended |
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to read as follows: |
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(b) If the occupant is a tenant at will or by sufferance, the |
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landlord must give the tenant at least three days' written notice to |
|
vacate before the landlord files a forcible detainer suit unless |
|
the parties have contracted for a shorter or longer notice period in |
|
a written lease or agreement. If a building is purchased at a tax |
|
foreclosure sale or a trustee's foreclosure sale under a lien |
|
superior to the tenant's lease and the tenant timely pays rent and |
|
is not otherwise in default under the tenant's lease after |
|
foreclosure, the purchaser must give a residential tenant of the |
|
building at least 30 [60] days' written notice to vacate if the |
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purchaser chooses not to continue the lease. The tenant is |
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considered to timely pay the rent under this subsection if, during |
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the month of the foreclosure sale, the tenant pays the rent for that |
|
month to the landlord before receiving any notice that a |
|
foreclosure sale is scheduled during the month or pays the rent for |
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that month to the foreclosing lienholder or the purchaser at |
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foreclosure not later than the fifth day after the date of receipt |
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of a written notice of the name and address of the purchaser that |
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requests payment. Before a foreclosure sale, a foreclosing |
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lienholder may give written notice to a tenant stating that a |
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foreclosure notice has been given to the landlord or owner of the |
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property and specifying the date of the foreclosure. |
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SECTION 5. The changes in law made by this Act apply only to |
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a notice required to be provided on or after September 1, 2009. A |
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notice required to be provided before September 1, 2009, is |
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governed by the law in effect immediately before that date, and that |
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law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2009. |