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A BILL TO BE ENTITLED
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AN ACT
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relating to rights and remedies of certain residential tenants and |
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landlords; providing civil penalties. |
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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 Subsections (b-1), (b-2), and |
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(b-3) 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 |
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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. |
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(b-1) If the occupant is a bona fide residential tenant at |
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will or by sufferance, a purchaser who purchases at a judicial or |
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nonjudicial foreclosure sale the building that the tenant occupies |
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must give the tenant at least 90 days' written notice to vacate. |
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(b-2) For purposes of this section, a residential tenant is |
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bona fide only if the tenant: |
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(1) occupies the premises on the date of the |
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foreclosure sale; and |
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(2) is not the mortgagor of the purchaser at the |
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foreclosure sale or the child, spouse, or parent of the mortgagor. |
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[If a building is purchased at a tax foreclosure sale or a trustee's
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foreclosure sale under a lien superior to the tenant's lease and the
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tenant timely pays rent and is not otherwise in default under the
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tenant's lease after foreclosure, the purchaser must give a
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residential tenant of the building at least 30 days' written notice
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to vacate if the purchaser chooses not to continue the lease. The
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tenant is considered to timely pay the rent under this subsection
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if, during the month of the foreclosure sale, the tenant pays the
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rent for that month to the landlord before receiving any notice that
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a foreclosure sale is scheduled during the month or pays the rent
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for 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.] |
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(b-3) Before a foreclosure sale, a foreclosing lienholder |
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may give [written notice] to a tenant at will or by sufferance or |
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under a written lease or oral rental agreement written notice |
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stating that a foreclosure notice has been given to the landlord or |
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owner of the property and specifying the date of the foreclosure. |
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SECTION 2. Subchapter A, Chapter 92, Property Code, is |
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amended by adding Sections 92.025 and 92.026 to read as follows: |
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Sec. 92.025. EFFECT OF FORECLOSURE ON TENANCY. (a) The |
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purchaser of a premises at a judicial or nonjudicial foreclosure |
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sale may require a bona fide tenant of the premises to vacate only |
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after the purchaser provides to the tenant at least 90 days' written |
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notice to vacate. |
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(b) A bona fide tenant of a premises purchased at a judicial |
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or nonjudicial foreclosure sale may occupy the premises until the |
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later of: |
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(1) the date provided by the notice to vacate under |
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Subsection (a); or |
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(2) the end of the remaining lease term. |
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(c) For purposes of Subsection (b), a tenant may occupy the |
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premises as described by Subsection (b) only if the tenant: |
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(1) owes no delinquent or unpaid rent or other sums |
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owed to the landlord on the date of the foreclosure sale; and |
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(2) is a party to a lease agreement that is effective |
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on the date of the foreclosure sale. |
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(d) For purposes of this section, a tenant is bona fide only |
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if: |
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(1) the lease was the result of an arms-length |
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transaction; |
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(2) the lease requires receipt of rent that is not |
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substantially less than fair market rent for the premises; and |
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(3) the tenant is not the mortgagor of the purchaser at |
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the foreclosure sale or the child, spouse, or parent of the |
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mortgagor. |
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Sec. 92.026. LANDLORD'S DUTY TO PROVIDE COPY OF LEASE. (a) |
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A landlord shall provide a copy of the lease to each tenant who is a |
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party to the lease on the date on which the tenant signs the lease. |
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(b) If a landlord fails to comply with Subsection (a), the |
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tenant may: |
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(1) unilaterally terminate the lease and vacate the |
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premises without a court proceeding; and |
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(2) bring an action to recover from the landlord a |
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civil penalty of an amount equal to one month's rent plus $1,000, |
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actual damages, court costs, and reasonable attorney's fees. |
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SECTION 3. Sections 92.331(a) and (b), Property Code, are |
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amended to read as follows: |
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(a) A landlord may not retaliate against a tenant by taking |
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an action described by Subsection (b) because the tenant: |
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(1) in good faith exercises or attempts to exercise |
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against a landlord a right or remedy granted to the tenant by lease, |
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municipal ordinance, or federal or state statute; |
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(2) gives a landlord a notice to repair or exercise a |
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remedy under this chapter; [or] |
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(3) complains to a governmental entity responsible for |
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enforcing building or housing codes, a public utility, or a civic or |
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nonprofit agency, and the tenant: |
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(A) claims a building or housing code violation |
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or utility problem; and |
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(B) believes in good faith that the complaint is |
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valid and that the violation or problem occurred; |
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(4) establishes, attempts to establish, or |
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participates in a tenant organization; or |
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(5) raises in good faith any issue regarding the |
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condition or use of the property. |
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(b) A landlord may not, within six months after the date of |
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the tenant's action under Subsection (a), retaliate against the |
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tenant by: |
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(1) filing an eviction proceeding, except for the |
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grounds stated by Section 92.332; |
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(2) depriving the tenant of the use of the premises, |
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except for reasons authorized by law; |
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(3) decreasing services to the tenant; |
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(4) increasing the tenant's rent or terminating the |
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tenant's lease; [or] |
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(5) engaging, in bad faith, in a course of conduct that |
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materially interferes with the tenant's rights under the tenant's |
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lease; or |
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(6) directly or indirectly interfering or threatening |
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to interfere with the tenant's peaceful enjoyment of the premises. |
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SECTION 4. (a) The changes in law made by Section 24.005, |
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Property Code, as amended by this Act, and Section 92.025, Property |
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Code, as added by this Act, apply only to the purchase of leased |
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property at a foreclosure sale on or after the effective date of |
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this Act. The purchase of leased property at a foreclosure sale |
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before the effective date of this Act is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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(b) The changes in law made by Section 92.026, Property |
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Code, as added by this Act, apply only to a lease the effective date |
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of which is on or after the effective date of this Act. A lease the |
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effective date of which is before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2011. |