Texas House Bill HB2177

Texas 2011 - 82nd Regular

• Out of House Committee: 4/14/11
• Introduced: 3/3/11
• Refer: 3/8/11
• Report Pass: 4/7/11

Caption

Relating to certain claims against persons licensed as real estate brokers and salespersons.

Impact

The proposed changes aim to clarify the scope of liability for real estate professionals, potentially leading to a more stable operating environment for these individuals in Texas. By narrowing the circumstances under which claims can be made, the bill seeks to reduce frivolous lawsuits that could arise from standard broker-client interactions. This change could be welcomed by real estate professionals who often face the risk of litigation in their dealings and may encourage more individuals to enter the profession.

Summary

House Bill 2177 addresses claims against individuals licensed as real estate brokers and salespersons in Texas. The bill introduces an amendment to Section 17.49 of the Business & Commerce Code, specifying that certain claims arising from acts or omissions while acting in their professional capacity are excluded from liability under specific circumstances. One significant aspect of this legislation is the emphasis on unconscionable actions, indicating a concern for protecting consumers from extreme injustices while still allowing licensed professionals to operate without undue fear of litigation for subjective advice or judgment.

Contention

However, the bill may spark contention among consumer advocacy groups and those concerned about consumer protections. Critics may argue that limiting claims in this manner could undermine accountability for real estate brokers and salespersons, particularly in situations where their actions could genuinely harm consumers. The balance between protecting professionals' rights and ensuring consumer safety remains a focal point of debate surrounding this legislation.

Effective_date

The act states that the provisions apply only to claims arising from acts or omissions occurring on or after its effective date. Claims arising prior to this date will continue to be governed by existing laws, highlighting an acknowledgment of ongoing legal considerations for past actions.