81R19574 PMO-F
By: Kleinschmidt, Darby H.B. No. 3441
Substitute the following for H.B. No. 3441:
By: Elkins C.S.H.B. No. 3441
A BILL TO BE ENTITLED
AN ACT
relating to certain construction liens under the Texas Residential
Construction Commission Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 420.002, Property Code, is amended to
read as follows:
Sec. 420.002. REQUIRED CONTRACT PROVISIONS. (a) In a
contract for the construction of a new home or an improvement to an
existing home required to be registered under Section 426.003, the
contract is not enforceable against a homeowner unless the
contract:
(1) contains the builder's name and certificate of
registration number; and
(2) contains the notice required by Section 420.001.
(b) Notwithstanding Subsection (a), a builder's failure to
comply with that subsection does not invalidate a lien of an entity
that:
(1) provided third-party financing to a homeowner for
the construction of a new home or an improvement to an existing home
under a residential construction contract; or
(2) renewed and extended financing for a purpose
described by Subdivision (1).
SECTION 2. This Act takes effect September 1, 2009.