| 1 | 1 | | 81R10078 PMO-D |
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| 2 | 2 | | By: Leibowitz H.B. No. 3020 |
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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 disclosure of the cause of and remediation of |
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| 8 | 8 | | construction defects resulting in resale by certain homebuilders. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 420, Property Code, is amended by adding |
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| 11 | 11 | | Section 420.005 to read as follows: |
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| 12 | 12 | | Sec. 420.005. FULL DISCLOSURE OF RESALE BY BUILDER. (a) |
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| 13 | 13 | | Before a contract may be executed or money exchanged between a |
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| 14 | 14 | | builder and a buyer for purchase of a home that, because of one or |
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| 15 | 15 | | more construction defects, the builder repurchased from a previous |
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| 16 | 16 | | buyer from the builder, the builder must provide to the buyer a |
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| 17 | 17 | | document that fully discloses the nature of and the builder's |
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| 18 | 18 | | remediation of each of those construction defects. |
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| 19 | 19 | | (b) In addition to a disclosure of the nature of each |
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| 20 | 20 | | construction defect and the remediation work performed, the |
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| 21 | 21 | | disclosure under Subsection (a) must include information relating |
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| 22 | 22 | | to: |
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| 23 | 23 | | (1) any products installed in the home relating to the |
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| 24 | 24 | | remediation; |
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| 25 | 25 | | (2) care and component warranties of those products; |
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| 26 | 26 | | (3) building standards used in performing the |
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| 27 | 27 | | remediation; and |
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| 28 | 28 | | (4) any risks and hazards of the home. |
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| 29 | 29 | | SECTION 2. Section 420.005, Property Code, as added by this |
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| 30 | 30 | | Act, applies only to a contract executed by a builder and a buyer as |
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| 31 | 31 | | described by Section 420.005, Property Code, as added by this Act, |
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| 32 | 32 | | on or after the effective date of this Act. A contract executed |
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| 33 | 33 | | before the effective date of this Act is covered by the law in |
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| 34 | 34 | | effect when the contract was executed, and the former law is |
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| 35 | 35 | | continued in effect for that purpose. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2009. |
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