By: Anchia, Thibaut H.B. No. 534
A BILL TO BE ENTITLED
AN ACT
relating to the liability of certain guarantors under a residential
lease.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.021 to read as follows:
Sec. 92.021. LIABILITY OF CERTAIN GUARANTORS UNDER LEASE.
(a) A person other than a tenant who guarantees a lease is liable
only for the original lease term except that a person may specify
that the person agrees to guarantee a renewal of the lease as
provided by Subsection (b).
(b) A person may specify in writing in an original lease
that the person will guarantee a renewal of the lease only if the
original lease states:
(1) the last date, as specified by the guarantor, on
which the renewal of the lease will renew the obligation of the
guarantor;
(2) that the guarantor is liable under a renewal of the
lease that occurs on or before that date; and
(3) that the guarantor is liable under a renewal of the
lease only if the renewal:
(A) involves the same parties as the original
lease; and
(B) does not increase the guarantor's potential
financial obligation for rent that existed under the original
lease.
(c) Subsection (b) does not prohibit a guarantor from
voluntarily entering into an agreement at the time of the renewal of
a lease, in a separate written document, to guarantee an increased
amount of rent.
(d) This section does not release a guarantor from the
obligations of the guarantor under the terms of the original lease
or a valid renewal for costs and damages owed to the lessor that
arise after the date specified by the guarantor in the original
lease in accordance with Subsection (b), if the costs or damages
relate to actions of the tenant before that date or arise as a
result of the tenant refusing to vacate the leased premises.
SECTION 2. The changes in law made by this Act apply only to
a lease agreement that is executed or renewed on or after the
effective date of this Act. A lease agreement that is executed or
renewed before the effective date of this Act is governed by the law
in effect at the time the lease agreement was executed or renewed,
and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect January 1, 2010.