| 1 | 1 | | 81R19884 PMO-D |
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| 2 | 2 | | By: Rodriguez H.B. No. 883 |
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| 3 | 3 | | Substitute the following for H.B. No. 883: |
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| 4 | 4 | | By: England C.S.H.B. No. 883 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to early termination of a residential lease agreement. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 92, Property Code, is |
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| 12 | 12 | | amended by adding Section 92.025 to read as follows: |
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| 13 | 13 | | Sec. 92.025. EARLY TERMINATION OF LEASE BY TENANT WITHOUT |
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| 14 | 14 | | CAUSE. (a) A tenant who terminates a lease without cause before |
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| 15 | 15 | | the termination date stated in the lease is liable to the landlord |
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| 16 | 16 | | for the landlord's damages that result from the tenant's early |
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| 17 | 17 | | termination of the lease less: |
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| 18 | 18 | | (1) any lawful setoffs, including any amount of a |
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| 19 | 19 | | security deposit eligible for refund under Subchapter C; and |
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| 20 | 20 | | (2) any amounts collected in the landlord's effort to |
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| 21 | 21 | | mitigate damages under Section 91.006. |
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| 22 | 22 | | (b) The damages a landlord may recover under Subsection (a) |
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| 23 | 23 | | are limited to: |
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| 24 | 24 | | (1) the amount of rent required to be paid for the |
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| 25 | 25 | | remainder of the lease term; |
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| 26 | 26 | | (2) late fees owed by the tenant before the |
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| 27 | 27 | | termination; |
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| 28 | 28 | | (3) reasonable fees incurred by the landlord to relet |
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| 29 | 29 | | the property; and |
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| 30 | 30 | | (4) costs to repair the property for any damage to the |
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| 31 | 31 | | property beyond normal wear and tear. |
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| 32 | 32 | | (c) For purposes of Subsection (b)(1), the rental rate for |
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| 33 | 33 | | the remainder of the lease term may not exceed the rate the tenant |
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| 34 | 34 | | was paying before the date of the tenant's early termination. |
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| 35 | 35 | | (d) This section does not limit the rights of a landlord or |
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| 36 | 36 | | tenant under Section 92.104. |
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| 37 | 37 | | (e) A provision of a lease that purports to waive a tenant's |
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| 38 | 38 | | right or to exempt a landlord from a liability or duty under this |
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| 39 | 39 | | section is void. |
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| 40 | 40 | | SECTION 2. This Act applies only to a lease agreement |
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| 41 | 41 | | entered into on or after the effective date of this Act. A lease |
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| 42 | 42 | | agreement entered into before the effective date of this Act is |
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| 43 | 43 | | covered by the law in effect at the time the lease agreement was |
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| 44 | 44 | | entered into, and the former law is continued in effect for that |
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| 45 | 45 | | purpose. |
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| 46 | 46 | | SECTION 3. This Act takes effect January 1, 2010. |
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