Texas 2009 - 81st Regular

Texas Senate Bill SB2293 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R8351 PMO-D
2	2	By: Lucio S.B. No. 2293
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provision of accounting statements by a seller who
8	8	finances the sale of residential real property owned by the seller;
9	9	providing a civil penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter A, Chapter 5, Property Code, is
12	12	amended by adding Section 5.019 to read as follows:
13	13	Sec. 5.019. ANNUAL ACCOUNTING STATEMENT REQUIRED FOR
14	14	SELLER-FINANCED SALES OF RESIDENTIAL REAL PROPERTY. (a) This
15	15	section applies only to a seller of residential real property who
16	16	finances the sale of the property by delivering title to the
17	17	property to the purchaser in exchange for the purchaser's agreement
18	18	to pay the purchase price to the seller in periodic installments.
19	19	(b) A seller who enters into a transaction described by
20	20	Subsection (a) shall provide the purchaser an annual accounting
21	21	statement in January of each year until the purchaser pays the
22	22	purchase price of the property in full. If the seller mails the
23	23	statement to the purchaser, the statement must be postmarked not
24	24	later than January 31.
25	25	(c) The statement required by Subsection (b) must state:
26	26	(1) the total amount that the purchaser has paid
27	27	toward the purchase price of the property;
28	28	(2) the balance owed to the seller as of the preceding
29	29	December 31;
30	30	(3) the number of payments remaining; and
31	31	(4) the amount that the seller has paid to any taxing
32	32	authority as of the preceding December 31 for the preceding tax year
33	33	on the purchaser's behalf, if collected by the seller.
34	34	(d) Not more than once each month and at no cost to the
35	35	purchaser, a seller shall provide to the purchaser, not later than
36	36	the 10th day after the date the purchaser makes a written request
37	37	for the statement, a written statement of the balance of the
38	38	purchase price owed by the purchaser in the month in which the
39	39	request is made.
40	40	(e) Except as provided by Subsection (f), a seller who fails
41	41	to comply with Subsection (b) is liable to the purchaser for:
42	42	(1) actual damages;
43	43	(2) additional damages in the amount of $500 for each
44	44	annual statement the seller fails to provide to the purchaser
45	45	within the period required by Subsection (b); and
46	46	(3) reasonable attorney's fees.
47	47	(f) A seller who makes not more than one sale subject to this
48	48	section in a 12-month period and who fails to comply with Subsection
49	49	(b) is liable to the purchaser for:
50	50	(1) a civil penalty in the amount of $100 for each
51	51	annual statement the seller fails to provide within the period
52	52	required by Subsection (b); and
53	53	(2) reasonable attorney's fees.
54	54	(g) A seller who fails to comply with Subsection (d) is
55	55	liable to the purchaser for:
56	56	(1) actual damages;
57	57	(2) additional damages in the amount of $100 for each
58	58	statement the seller fails to provide within the period required by
59	59	Subsection (d); and
60	60	(3) reasonable attorney's fees.
61	61	(h) A purchaser may deduct from the balance of the purchase
62	62	price an amount owed to the purchaser by the seller under Subsection
63	63	(e), (f), or (g).
64	64	(i) A seller who fails to comply with Subsection (b) after
65	65	receiving a written notice from the purchaser of the seller's
66	66	violation may not controvert a sworn statement from the purchaser
67	67	regarding a fact required to be reflected in the statement by
68	68	Subsection (c).
69	69	(j) An agreement that purports to waive a right or exempt a
70	70	party from a liability or duty under this section is void and
71	71	unenforceable.
72	72	(k) This section does not apply to a transfer:
73	73	(1) under a court order or foreclosure sale;
74	74	(2) by a trustee in bankruptcy;
75	75	(3) to a mortgagee by a mortgagor or successor in
76	76	interest or to a beneficiary of a deed of trust by a trustor or
77	77	successor in interest;
78	78	(4) by a mortgagee or a beneficiary under a deed of
79	79	trust who has acquired the real property at a sale conducted under a
80	80	power of sale under a deed of trust or a sale under a court-ordered
81	81	foreclosure or has acquired the real property by a deed in lieu of
82	82	foreclosure;
83	83	(5) by a fiduciary in the course of the administration
84	84	of a decedent's estate, guardianship, conservatorship, or trust;
85	85	(6) from one co-owner to another co-owner;
86	86	(7) to a spouse or to a person or persons in the lineal
87	87	line of consanguinity of a transferor;
88	88	(8) between spouses resulting from a decree of
89	89	dissolution of marriage, a decree of legal separation, or a
90	90	property settlement agreement incidental to a decree of dissolution
91	91	or separation; or
92	92	(9) to or from any governmental entity.
93	93	SECTION 2. The change in law made by this Act applies to a
94	94	financing agreement entered into before, on, or after the effective
95	95	date of this Act.
96	96	SECTION 3. This Act takes effect September 1, 2009.