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A BILL TO BE ENTITLED
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AN ACT
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relating to benefits offered to purchasers by builders of new |
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residences. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 113 to read as follows: |
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CHAPTER 113. CERTAIN ACTS BY BUILDERS OF NEW RESIDENCES PROHIBITED |
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Sec. 113.001. DEFINITIONS. In this chapter: |
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(1) "Builder" means a business entity or individual |
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who, for a fixed price, commission, fee, wage, or other |
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compensation: |
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(A) constructs or supervises or manages the |
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construction of new residences; and |
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(B) sells or has the intent to sell the new |
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residences immediately following completion of the construction. |
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(2) "Residence" means a single-family home, duplex, |
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triplex, or quadruplex used or intended to be used as a dwelling. |
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(3) "Residential mortgage loan" has the meaning |
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assigned by Section 180.002, Finance Code. |
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(4) "Residential mortgage loan company" has the |
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meaning assigned by Section 156.002, Finance Code. |
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(5) "Title insurance company" has the meaning assigned |
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by Section 2501.003, Insurance Code. |
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Sec. 113.002. BUILDER PROHIBITED FROM PROVIDING BENEFIT |
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CONTINGENT ON USE OF PREFERRED LENDER OR TITLE COMPANY. A builder |
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may not offer or provide any benefit to a person as consideration |
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for the person's agreement to use a residential mortgage loan |
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company or title insurance company specified by the builder to |
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obtain a residential mortgage loan or title insurance for the |
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purchase of a new residence from the builder. |
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Sec. 113.003. CIVIL ACTION. (a) A person who is offered or |
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provided a benefit by a builder in violation of Section 113.002 may |
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bring an action against the builder for: |
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(1) any actual damages arising from the violation; and |
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(2) exemplary damages in an amount of not less than |
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$10,000. |
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(b) Notwithstanding Section 41.004(a), Civil Practice and |
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Remedies Code, a court shall award exemplary damages under |
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Subsection (a)(2) to a prevailing party irrespective of whether the |
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party is awarded actual damages. |
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(c) If the person bringing an action under this section |
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prevails, the court may award the person reasonable attorney's fees |
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and court costs. |
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SECTION 2. Chapter 113, Business & Commerce Code, as added |
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by this Act, applies only to a contract for the purchase of a new |
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residence entered into on or after the effective date of this Act. |
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A contract for the purchase of a new residence entered into 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 is entered into, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |