| 1 | 1 | | By: Thibaut, Miklos, Deshotel, Pitts, H.B. No. 1471 |
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| 2 | 2 | | Guillen, et al. |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to foreclosure sales of residential real property. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 24.005(b), Property Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | (b) If the occupant is a tenant at will or by sufferance, the |
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| 12 | 12 | | landlord must give the tenant at least three days' written notice to |
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| 13 | 13 | | vacate before the landlord files a forcible detainer suit unless |
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| 14 | 14 | | the parties have contracted for a shorter or longer notice period in |
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| 15 | 15 | | a written lease or agreement. If a building is purchased at a tax |
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| 16 | 16 | | foreclosure sale or a trustee's foreclosure sale under a lien |
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| 17 | 17 | | superior to the tenant's lease and the tenant timely pays rent and |
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| 18 | 18 | | is not otherwise in default under the tenant's lease after |
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| 19 | 19 | | foreclosure, the purchaser must give a residential tenant of the |
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| 20 | 20 | | building at least 60 [30] days' written notice to vacate if the |
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| 21 | 21 | | purchaser chooses not to continue the lease. The tenant is |
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| 22 | 22 | | considered to timely pay the rent under this subsection if, during |
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| 23 | 23 | | the month of the foreclosure sale, the tenant pays the rent for that |
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| 24 | 24 | | month to the landlord before receiving any notice that a |
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| 25 | 25 | | foreclosure sale is scheduled during the month or pays the rent for |
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| 26 | 26 | | that month to the foreclosing lienholder or the purchaser at |
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| 27 | 27 | | foreclosure not later than the fifth day after the date of receipt |
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| 28 | 28 | | of a written notice of the name and address of the purchaser that |
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| 29 | 29 | | requests payment. Before a foreclosure sale, a foreclosing |
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| 30 | 30 | | lienholder may give written notice to a tenant stating that a |
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| 31 | 31 | | foreclosure notice has been given to the landlord or owner of the |
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| 32 | 32 | | property and specifying the date of the foreclosure. |
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| 33 | 33 | | SECTION 2. Section 51.002(d), Property Code, is amended to |
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| 34 | 34 | | read as follows: |
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| 35 | 35 | | (d) Notwithstanding any agreement to the contrary, the |
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| 36 | 36 | | mortgage servicer of the debt shall serve a debtor in default under |
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| 37 | 37 | | a deed of trust or other contract lien on real property used as the |
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| 38 | 38 | | debtor's residence with written notice by certified mail, and first |
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| 39 | 39 | | class regular mail, addressed to the debtor at the debtor's last |
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| 40 | 40 | | known address stating that the debtor is in default under the deed |
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| 41 | 41 | | of trust or other contract lien and giving the debtor at least 45 |
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| 42 | 42 | | [20] days to cure the default before notice of sale can be given |
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| 43 | 43 | | under Subsection (b). The entire calendar day on which the notice |
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| 44 | 44 | | required by this subsection is given, regardless of the time of day |
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| 45 | 45 | | at which the notice is given, is included in computing the 45-day |
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| 46 | 46 | | [20-day] notice period required by this subsection, and the entire |
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| 47 | 47 | | calendar day on which notice of sale is given under Subsection (b) |
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| 48 | 48 | | is excluded in computing the 45-day [20-day] notice period. |
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| 49 | 49 | | SECTION 3. Chapter 51, Property Code, is amended by adding |
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| 50 | 50 | | Section 51.010 to read as follows: |
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| 51 | 51 | | Sec. 51.010. WAIVER. A provision of a contract, agreement, |
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| 52 | 52 | | or other document that purports to waive a right of a debtor or |
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| 53 | 53 | | exempt a mortgage servicer, mortgagee, trustee, substitute |
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| 54 | 54 | | trustee, or government official from a duty under this chapter is |
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| 55 | 55 | | void. |
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| 56 | 56 | | SECTION 4. (a) Section 24.005(b), Property Code, as |
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| 57 | 57 | | amended by this Act, applies only to a notice to vacate residential |
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| 58 | 58 | | real property purchased at a foreclosure sale on or after the |
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| 59 | 59 | | effective date of this Act. Notice to vacate residential real |
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| 60 | 60 | | property purchased at a foreclosure sale before the effective date |
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| 61 | 61 | | of this Act is governed by the law in effect immediately before the |
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| 62 | 62 | | effective date of this Act, and that law is continued in effect for |
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| 63 | 63 | | that purpose. |
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| 64 | 64 | | (b) Section 51.002, Property Code, as amended by this Act, |
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| 65 | 65 | | applies only to a sale of real property used as a debtor's residence |
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| 66 | 66 | | in which notice of default under that section is provided on or |
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| 67 | 67 | | after December 1, 2009. A sale in which notice of default is |
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| 68 | 68 | | provided before December 1, 2009, is subject to the law in effect |
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| 69 | 69 | | immediately before the effective date of this Act, and that law is |
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| 70 | 70 | | continued in effect for that purpose. |
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| 71 | 71 | | (c) Section 51.010, Property Code, as added by this Act, |
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| 72 | 72 | | applies only to a contract, agreement, or other document entered |
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| 73 | 73 | | into or made on or after the effective date of this Act. A contract, |
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| 74 | 74 | | agreement, or document entered into or made before the effective |
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| 75 | 75 | | date of this Act is governed by the law in effect immediately before |
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| 76 | 76 | | the effective date of this Act, and that law is continued in effect |
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| 77 | 77 | | for that purpose. |
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| 78 | 78 | | SECTION 5. This Act takes effect September 1, 2009. |
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