Relating to the execution of deeds conveying residential real estate in connection with certain transactions involving residential real estate.
Impact
The bill introduces civil liabilities for those who violate the specified provisions. It allows for actual damages and exemplary damages, which can reach up to three times the actual damages incurred. Additionally, it outlines the conditions under which a purchaser or borrower can bring action against violators, thereby setting a clear timeline and procedure for claiming damages. This shift may lead to more cautious practices among sellers and lenders in the real estate market.
Summary
House Bill 3116 proposes amendments to the Texas Business and Commerce Code regarding the execution of deeds that convey residential real estate, specifically in certain transactions. The bill aims to protect purchasers and borrowers by prohibiting sellers or creditors from requiring them to execute deeds at the time of conveyance or credit extension. Any deed executed in violation of this prohibition is deemed voidable, thus enhancing consumer protection in real estate transactions.
Conclusion
Overall, HB3116 represents a significant development in the regulation of residential real estate transactions, focusing on safeguarding consumer rights. It may inspire similar legislative efforts to enhance protections in other areas of real estate law and provide a template for addressing potential malpractice in property transactions.
Contention
One notable point of contention surrounding the bill relates to the extent of its impact on traditional practices in residential real estate transactions. Critics may argue that the new prohibitions could complicate existing processes and create friction between buyers, sellers, and lenders. Furthermore, while the bill aims to protect consumers, there may be concerns regarding the operational implications for real estate professionals and how this could affect market dynamics.
Identical
Relating to the execution of written instruments relating to residential real estate transactions and deeds conveying residential real estate in connection with certain transactions involving residential real estate; providing a civil penalty.
Relating to verification of identity and employment authorization in connection with certain contracts for or concerning the conveyance of residential real property and residential leases.