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AN ACT
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relating to an executory contract for the conveyance of real |
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property; 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. Section 5.062(e), Property Code, is amended to |
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read as follows: |
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(e) Sections 5.066, 5.067, 5.071, 5.075, 5.079, 5.081, and |
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5.082 do not apply to an executory contract described by Subsection |
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(a)(2). |
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SECTION 2. Section 5.064, Property Code, is amended to read |
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as follows: |
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Sec. 5.064. SELLER'S REMEDIES ON DEFAULT. A seller may |
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enforce the remedy of rescission or of forfeiture and acceleration |
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against a purchaser in default under an executory contract for |
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conveyance of real property only if: |
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(1) the seller notifies the purchaser of: |
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(A) the seller's intent to enforce a remedy under |
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this section; and |
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(B) the purchaser's right to cure the default |
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within the 30-day period described by Section 5.065; |
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(2) the purchaser fails to cure the default within the |
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30-day period described by Section 5.065; [and] |
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(3) Section 5.066 does not apply; and |
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(4) the contract has not been recorded in the county in |
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which the property is located. |
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SECTION 3. Section 5.066(a), Property Code, is amended to |
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read as follows: |
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(a) If a purchaser defaults after the purchaser has paid 40 |
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percent or more of the amount due or the equivalent of 48 monthly |
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payments under the executory contract or, regardless of the amount |
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the purchaser has paid, the executory contract has been recorded, |
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the seller is granted the power to sell, through a trustee |
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designated by the seller, the purchaser's interest in the property |
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as provided by this section. The seller may not enforce the remedy |
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of rescission or of forfeiture and acceleration after the contract |
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has been recorded. |
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SECTION 4. Section 5.070, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) If the executory contract is recorded, the seller is not |
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required to continue insuring the property. |
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SECTION 5. Section 5.076, Property Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) A seller who violates this section is liable to the |
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purchaser in the same manner and for the same amount as a seller who |
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violates Section 5.079 is liable to a purchaser, except the damages |
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may not exceed $500 for each calendar year of noncompliance. This |
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subsection does not limit or affect any other rights or remedies a |
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purchaser has under other law. |
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SECTION 6. Section 5.077, Property Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) The requirements of this section continue to apply after |
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a purchaser obtains title to the property by conversion or any other |
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process. |
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SECTION 7. Section 5.079(a), Property Code, is amended to |
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read as follows: |
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(a) A recorded executory contract shall be the same as a |
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deed with a vendor's lien. The vendor's lien is for the amount of |
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the unpaid contract price, less any lawful deductions, and may be |
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enforced by foreclosure sale under Section 5.066 or by judicial |
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foreclosure. A general warranty is implied unless otherwise |
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limited by the recorded executory contract. If an executory |
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contract has not been recorded or converted under Section 5.081, |
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the [The] seller shall transfer recorded, legal title of the |
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property covered by the executory contract to the purchaser not |
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later than the 30th day after the date the seller receives the |
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purchaser's final payment due under the contract. |
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SECTION 8. Section 5.081, Property Code, is amended by |
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amending Subsection (a) and adding Subsection (h) to read as |
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follows: |
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(a) A purchaser, at any time and without paying penalties or |
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charges of any kind, is entitled to convert the purchaser's |
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interest in property under an executory contract into recorded, |
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legal title in accordance with this section, regardless of whether |
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the seller has recorded the executory contract. |
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(h) This section may not be construed to limit the |
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purchaser's interest in the property established by other law, if |
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any, or any other rights of the purchaser under this subchapter. |
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SECTION 9. (a) The changes in law made by this Act to |
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Sections 5.064 and 5.066, Property Code, apply only to a default |
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that occurs on or after the effective date of this Act. A default |
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that occurred before the effective date of this Act is governed by |
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the law in effect on the date the default occurred, and that law is |
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continued in effect for that purpose. |
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(b) Sections 5.079 and 5.081, Property Code, as amended by |
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this Act, apply to an executory contract entered into before, on, or |
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after the effective date of this Act. |
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(c) The changes in law made by this Act to Sections 5.070 and |
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5.076, Property Code, apply to an executory contract entered into |
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on or after the effective date of this Act. An executory contract |
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entered into before the effective date of this Act is governed by |
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the law in effect on the date the contract was entered into, and |
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that law is continued in effect for that purpose. |
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(d) The changes in law made by this Act to Section 5.077, |
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Property Code, apply to an executory contract that is converted to |
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transfer legal title on or after the effective date of this Act. An |
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executory contract that is converted to transfer legal title before |
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the effective date of this Act is governed by the law in effect on |
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the date the contract was entered into, and that law is continued in |
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effect for that purpose. |
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SECTION 10. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 311 was passed by the House on April |
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23, 2015, by the following vote: Yeas 132, Nays 7, 2 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 311 on May 26, 2015, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 311 on May 30, 2015, by the following vote: Yeas 131, |
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Nays 11, 3 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 311 was passed by the Senate, with |
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amendments, on May 22, 2015, by the following vote: Yeas 27, Nays |
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3; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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311 on May 30, 2015, by the following vote: Yeas 26, Nays 4, 1 |
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present, not voting. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |