81R8823 AJA-F
By: Thibaut H.B. No. 1471
A BILL TO BE ENTITLED
AN ACT
relating to foreclosure sales of residential real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 24.005(b), Property Code, is amended 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. 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 90 [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. Before a foreclosure sale, a foreclosing
lienholder may give written notice to a tenant 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. Section 51.002(d), Property Code, is amended to
read as follows:
(d) Notwithstanding any agreement to the contrary, the
mortgage servicer of the debt shall serve a debtor in default under
a deed of trust or other contract lien on residential real property
[used as the debtor's residence] with written notice by certified
mail, and first class regular mail, addressed to the debtor at the
debtor's last known address stating that the debtor is in default
under the deed of trust or other contract lien and giving the debtor
at least 45 [20] days to cure the default before notice of sale can
be given under Subsection (b). The entire calendar day on which the
notice required by this subsection is given, regardless of the time
of day at which the notice is given, is included in computing the
45-day [20-day] notice period required by this subsection, and the
entire calendar day on which notice of sale is given under
Subsection (b) is excluded in computing the 45-day [20-day] notice
period.
SECTION 3. Chapter 51, Property Code, is amended by adding
Section 51.010 to read as follows:
Sec. 51.010. WAIVER. A provision of a contract, agreement,
or other document that purports to waive a right of a debtor or
exempt a mortgage servicer, mortgagee, trustee, substitute
trustee, or government official from a duty under this chapter is
void.
SECTION 4. (a) Section 24.005(b), Property Code, as
amended by this Act, applies only to a notice to vacate residential
real property purchased at a foreclosure sale on or after the
effective date of this Act. Notice to vacate residential real
property purchased at a foreclosure sale before the effective date
of this Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
(b) Section 51.002, Property Code, as amended by this Act,
applies only to a sale of residential real property in which notice
of default under that section is provided on or after December 1,
2009. A sale in which notice of default is provided before December
1, 2009, is subject to the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
(c) Section 51.010, Property Code, as added by this Act,
applies only to a contract, agreement, or other document entered
into or made on or after the effective date of this Act. A contract,
agreement, or document entered into or made before the effective
date of this Act is governed by the law in effect 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, 2009.