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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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providing a civil penalty. |
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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 STATEMENT 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 the property by delivering title to the |
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property to the purchaser in exchange for the purchaser's agreement |
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to pay the purchase price to the seller in 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 an annual accounting |
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statement in January of each year until the purchaser pays the |
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purchase price of the property in full. If the seller mails the |
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statement to the purchaser, the statement must be postmarked not |
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later than January 31. |
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(c) The statement required by Subsection (b) must state: |
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(1) the total amount that the purchaser has paid |
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toward the purchase price of the property; |
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(2) the balance owed to the seller as of the preceding |
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December 31; |
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(3) the number of payments remaining; and |
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(4) the amount that the seller has paid to any taxing |
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authority as of the preceding December 31 for the preceding tax year |
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on the purchaser's behalf, if collected by the seller. |
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(d) Not more than once each month and at no cost to the |
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purchaser, a seller shall provide to the purchaser, not later than |
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the 10th day after the date the purchaser makes a written request |
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for the statement, a written statement of the balance of the |
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purchase price owed by the purchaser in the month in which the |
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request is made. |
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(e) Except as provided by Subsection (f), a seller who fails |
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to comply with Subsection (b) is 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 period required by Subsection (b); and |
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(3) reasonable attorney's fees. |
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(f) A seller who makes not more than one sale subject to this |
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section in a 12-month period and who fails to comply with Subsection |
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(b) is liable to the purchaser for: |
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(1) a civil penalty in the amount of $100 for each |
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annual statement the seller fails to provide within the period |
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required by Subsection (b); and |
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(2) reasonable attorney's fees. |
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(g) 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 within the period required by |
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Subsection (d); and |
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(3) reasonable attorney's fees. |
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(h) A purchaser may deduct from the balance of the purchase |
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price an amount owed to the purchaser by the seller under Subsection |
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(e), (f), or (g). |
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(i) A seller who fails to comply with Subsection (b) after |
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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 by |
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Subsection (c). |
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(j) 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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(k) This section does not apply to a transfer: |
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(1) under a court order or foreclosure sale; |
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(2) by a trustee in bankruptcy; |
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(3) to a mortgagee by a mortgagor or successor in |
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interest or to a beneficiary of a deed of trust by a trustor or |
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successor in interest; |
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(4) by a mortgagee or a beneficiary under a deed of |
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trust who has acquired the real property at a sale conducted under a |
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power of sale under a deed of trust or a sale under a court-ordered |
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foreclosure or has acquired the real property by a deed in lieu of |
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foreclosure; |
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(5) by a fiduciary in the course of the administration |
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of a decedent's estate, guardianship, conservatorship, or trust; |
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(6) from one co-owner to another co-owner; |
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(7) to a spouse or to a person or persons in the lineal |
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line of consanguinity of a transferor; |
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(8) between spouses resulting from a decree of |
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dissolution of marriage, a decree of legal separation, or a |
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property settlement agreement incidental to a decree of dissolution |
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or separation; or |
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(9) to or from any governmental entity. |
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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, 2009. |