81R8351 PMO-D
By: Lucio S.B. No. 2293
A BILL TO BE ENTITLED
AN ACT
relating to the provision of accounting statements by a seller who
finances the sale of residential real property owned by the seller;
providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.019 to read as follows:
Sec. 5.019. ANNUAL ACCOUNTING STATEMENT REQUIRED FOR
SELLER-FINANCED SALES OF RESIDENTIAL REAL PROPERTY. (a) This
section applies only to a seller of residential real property who
finances the sale of the property by delivering title to the
property to the purchaser in exchange for the purchaser's agreement
to pay the purchase price to the seller in periodic installments.
(b) A seller who enters into a transaction described by
Subsection (a) shall provide the purchaser an annual accounting
statement in January of each year until the purchaser pays the
purchase price of the property in full. If the seller mails the
statement to the purchaser, the statement must be postmarked not
later than January 31.
(c) The statement required by Subsection (b) must state:
(1) the total amount that the purchaser has paid
toward the purchase price of the property;
(2) the balance owed to the seller as of the preceding
December 31;
(3) the number of payments remaining; and
(4) the amount that the seller has paid to any taxing
authority as of the preceding December 31 for the preceding tax year
on the purchaser's behalf, if collected by the seller.
(d) Not more than once each month and at no cost to the
purchaser, a seller shall provide to the purchaser, not later than
the 10th day after the date the purchaser makes a written request
for the statement, a written statement of the balance of the
purchase price owed by the purchaser in the month in which the
request is made.
(e) Except as provided by Subsection (f), a seller who fails
to comply with Subsection (b) is liable to the purchaser for:
(1) actual damages;
(2) additional damages in the amount of $500 for each
annual statement the seller fails to provide to the purchaser
within the period required by Subsection (b); and
(3) reasonable attorney's fees.
(f) A seller who makes not more than one sale subject to this
section in a 12-month period and who fails to comply with Subsection
(b) is liable to the purchaser for:
(1) a civil penalty in the amount of $100 for each
annual statement the seller fails to provide within the period
required by Subsection (b); and
(2) reasonable attorney's fees.
(g) A seller who fails to comply with Subsection (d) is
liable to the purchaser for:
(1) actual damages;
(2) additional damages in the amount of $100 for each
statement the seller fails to provide within the period required by
Subsection (d); and
(3) reasonable attorney's fees.
(h) A purchaser may deduct from the balance of the purchase
price an amount owed to the purchaser by the seller under Subsection
(e), (f), or (g).
(i) A seller who fails to comply with Subsection (b) after
receiving a written notice from the purchaser of the seller's
violation may not controvert a sworn statement from the purchaser
regarding a fact required to be reflected in the statement by
Subsection (c).
(j) An agreement that purports to waive a right or exempt a
party from a liability or duty under this section is void and
unenforceable.
(k) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the real property at a sale conducted under a
power of sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the real property by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner;
(7) to a spouse or to a person or persons in the lineal
line of consanguinity of a transferor;
(8) between spouses resulting from a decree of
dissolution of marriage, a decree of legal separation, or a
property settlement agreement incidental to a decree of dissolution
or separation; or
(9) to or from any governmental entity.
SECTION 2. The change in law made by this Act applies to a
financing agreement entered into before, on, or after the effective
date of this Act.
SECTION 3. This Act takes effect September 1, 2009.