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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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adding Subsection (b-1) to read as follows: |
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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 to vacate the property that states the tenant's rights |
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under this chapter and Chapter 51. The attorney general shall |
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prescribe the contents of the notice. The purchaser may require the |
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tenant to vacate the property before the period prescribed by |
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Section 51.002(i) only for failure to pay rent or other payment due |
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under the lease agreement, including a late fee, as of the date of |
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sale. |
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SECTION 2. Section 51.002, Property Code, is amended by |
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amending Subsection (d) and adding Subsections (d-1), (d-2), (i), |
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and (j) to read as follows: |
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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 certified mail stating |
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that the debtor is in default under the deed of trust or other |
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contract lien and giving the debtor at least 45 [20] days to cure |
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the default before notice of sale can be given under Subsection (b). |
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The attorney general shall prescribe the contents of the notice. |
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The entire calendar day on which the notice required by this |
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subsection is given, regardless of the time of day at which the |
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notice is given, is included in computing the 45-day [20-day] |
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notice period required by this subsection, and the entire calendar |
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day on which notice of sale is given under Subsection (b) is |
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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 under this subsection. The notice must be printed on |
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a separate sheet of canary yellow or a similarly colored yellow |
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paper that is 8-1/2 by 11 inches or larger and affixed to the notice |
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of default provided under Subsection (d). The attorney general |
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shall prescribe the contents of the notice. The notice must include |
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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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mortgage; |
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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; and |
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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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(d-2) In addition to the notices provided under Subsections |
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(d) and (d-1), the mortgage servicer of the debt shall, not later |
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than the fifth day after the date the notices are mailed under |
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Subsections (d) and (d-1), attempt and make every reasonable effort |
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to contact the debtor in default by telephone if the debtor has |
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telephone service and provide the debtor with the same information |
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provided in the notices under Subsections (d) and (d-1). |
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(i) If a sale of property described by this section occurs, |
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notwithstanding Chapter 24: |
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(1) the tenant of the debtor who timely pays rent is |
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not required to vacate the property before the 31st day after the |
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date of the sale; 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. 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 5. This Act takes effect September 1, 2009. |
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