82R5640 NC-D
By: Miles H.B. No. 1218
A BILL TO BE ENTITLED
AN ACT
relating to foreclosure sales of residential real property occupied
by a tenant.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 24.005(b), Property Code, is amended to
read as follows:
(b) If the occupant is a tenant at will or by sufferance, the
landlord must give the tenant at least three days' written notice to
vacate before the landlord files a forcible detainer suit unless
the parties have contracted for a shorter or longer notice period in
a written lease or agreement. If a building is purchased at a tax
foreclosure sale or a trustee's foreclosure sale under a lien
superior to the tenant's lease and the tenant timely pays rent and
is not otherwise in default under the tenant's lease after
foreclosure, the purchaser must give a residential tenant of the
building at least 90 [30] days' written notice to vacate if the
purchaser chooses not to continue the lease. The tenant is
considered to timely pay the rent under this subsection if, during
the month of the foreclosure sale, the tenant pays the rent for that
month to the landlord before receiving any notice that a
foreclosure sale is scheduled during the month or pays the rent for
that month to the foreclosing lienholder or the purchaser at
foreclosure not later than the fifth day after the date of receipt
of a written notice of the name and address of the purchaser that
requests payment and, if applicable, pays to the purchaser each
rental payment that becomes due under the existing lease after the
month of the foreclosure sale and before the date on which the
tenant is required to vacate. Before a foreclosure sale, a
foreclosing lienholder may give written notice to a tenant stating
that a foreclosure notice has been given to the landlord or owner of
the property and specifying the date of the foreclosure.
SECTION 2. The changes in law made by this Act apply only to
residential real property purchased at a foreclosure sale on or
after the effective date of this Act. Residential real property
purchased at a foreclosure sale before the effective date of this
Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2011.