82R7230 PMO-F

By: Deshotel H.B. No. 1429

A BILL TO BE ENTITLED

AN ACT

relating to rights and remedies of certain residential tenants and landlords; providing civil penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 24.005, Property Code, is amended by amending Subsection (b) and adding Subsections (b-1), (b-2), and (b-3) to read as follows:

(b) If the occupant is a tenant at will or by sufferance, the 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.

(b-1) If the occupant is a bona fide residential tenant at will or by sufferance, a purchaser who purchases at a judicial or nonjudicial foreclosure sale the building that the tenant occupies must give the tenant at least 90 days' written notice to vacate.

(b-2) For purposes of this section, a residential tenant is bona fide only if the tenant:

(1) occupies the premises on the date of the foreclosure sale; and

(2) is not the mortgagor of the purchaser at the foreclosure sale or the child, spouse, or parent of the mortgagor. [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 days' written notice to vacate if the purchaser chooses not to continue the lease. The tenant is considered to timely pay the rent under this subsection if, during 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 that month to the foreclosing lienholder or the purchaser at foreclosure not later than the fifth day after the date of receipt of a written notice of the name and address of the purchaser that requests payment.]

(b-3) Before a foreclosure sale, a foreclosing lienholder may give [written notice] to a tenant at will or by sufferance or under a written lease or oral rental agreement written notice stating that a foreclosure notice has been given to the landlord or owner of the property and specifying the date of the foreclosure.

SECTION 2. Subchapter A, Chapter 92, Property Code, is amended by adding Sections 92.025 and 92.026 to read as follows:

Sec. 92.025. EFFECT OF FORECLOSURE ON TENANCY. (a) The purchaser of a premises at a judicial or nonjudicial foreclosure sale may require a bona fide tenant of the premises to vacate only after the purchaser provides to the tenant at least 90 days' written notice to vacate.

(b) A bona fide tenant of a premises purchased at a judicial or nonjudicial foreclosure sale may occupy the premises until the later of:

(1) the date provided by the notice to vacate under Subsection (a); or

(2) the end of the remaining lease term.

(c) For purposes of Subsection (b), a tenant may occupy the premises as described by Subsection (b) only if the tenant:

(1) owes no delinquent or unpaid rent or other sums owed to the landlord on the date of the foreclosure sale; and

(2) is a party to a lease agreement that is effective on the date of the foreclosure sale.

(d) For purposes of this section, a tenant is bona fide only if:

(1) the lease was the result of an arms-length transaction;

(2) the lease requires receipt of rent that is not substantially less than fair market rent for the premises; and

(3) the tenant is not the mortgagor of the purchaser at the foreclosure sale or the child, spouse, or parent of the mortgagor.

Sec. 92.026. LANDLORD'S DUTY TO PROVIDE COPY OF LEASE. (a) A landlord shall provide a copy of the lease to each tenant who is a party to the lease on the date on which the tenant signs the lease.

(b) If a landlord fails to comply with Subsection (a), the tenant may:

(1) unilaterally terminate the lease and vacate the premises without a court proceeding; and

(2) bring an action to recover from the landlord a civil penalty of an amount equal to one month's rent plus $1,000, actual damages, court costs, and reasonable attorney's fees.

SECTION 3. Sections 92.331(a) and (b), Property Code, are amended to read as follows:

(a) A landlord may not retaliate against a tenant by taking an action described by Subsection (b) because the tenant:

(1) in good faith exercises or attempts to exercise against a landlord a right or remedy granted to the tenant by lease, municipal ordinance, or federal or state statute;

(2) gives a landlord a notice to repair or exercise a remedy under this chapter; [or]

(3) complains to a governmental entity responsible for enforcing building or housing codes, a public utility, or a civic or nonprofit agency, and the tenant:

(A) claims a building or housing code violation or utility problem; and

(B) believes in good faith that the complaint is valid and that the violation or problem occurred;

(4) establishes, attempts to establish, or participates in a tenant organization; or

(5) raises in good faith any issue regarding the condition or use of the property.

(b) A landlord may not, within six months after the date of the tenant's action under Subsection (a), retaliate against the tenant by:

(1) filing an eviction proceeding, except for the grounds stated by Section 92.332;

(2) depriving the tenant of the use of the premises, except for reasons authorized by law;

(3) decreasing services to the tenant;

(4) increasing the tenant's rent or terminating the tenant's lease; [or]

(5) engaging, in bad faith, in a course of conduct that materially interferes with the tenant's rights under the tenant's lease; or

(6) directly or indirectly interfering or threatening to interfere with the tenant's peaceful enjoyment of the premises.

SECTION 4. (a) The changes in law made by Section 24.005, Property Code, as amended by this Act, and Section 92.025, Property Code, as added by this Act, apply only to the purchase of leased property at a foreclosure sale on or after the effective date of this Act. The purchase of leased property at a foreclosure sale before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

(b) The changes in law made by Section 92.026, Property Code, as added by this Act, apply only to a lease the effective date of which is on or after the effective date of this Act. A lease the effective date of which is before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 5. This Act takes effect September 1, 2011.