Texas 2011 - 82nd Regular

Texas House Bill HB3116 Compare Versions

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1	1	By: Gonzales of Hidalgo (Senate Sponsor - Lucio) H.B. No. 3116
2	2	(In the Senate - Received from the House May 6, 2011;
3	3	May 9, 2011, read first time and referred to Committee on Business
4	4	and Commerce; May 20, 2011, reported adversely, with favorable
5	5	Committee Substitute by the following vote: Yeas 8, Nays 0;
6	6	May 20, 2011, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR H.B. No. 3116 By: Lucio
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to the execution of deeds conveying residential real
13	13	estate in connection with certain transactions involving
14	14	residential real estate.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Title 2, Business & Commerce Code, is amended by
17	17	adding Chapter 21 to read as follows:
18	18	CHAPTER 21. EXECUTION OF DEEDS IN CERTAIN TRANSACTIONS INVOLVING
19	19	RESIDENTIAL REAL ESTATE
20	20	Sec. 21.001. DEFINITION. In this chapter, "residential
21	21	real estate" means real property on which a dwelling designed for
22	22	occupancy for one to four families is constructed or intended to be
23	23	constructed.
24	24	Sec. 21.002. PROHIBITION OF EXECUTION OF DEEDS CONVEYING
25	25	RESIDENTIAL REAL ESTATE IN CERTAIN TRANSACTIONS. (a) A seller of
26	26	residential real estate or a person who makes an extension of credit
27	27	and takes a security interest or mortgage against residential real
28	28	estate may not, before or at the time of the conveyance of the
29	29	residential real estate to the purchaser or the extension of credit
30	30	to the borrower, request or require the purchaser or borrower to
31	31	execute and deliver to the seller or person making the extension of
32	32	credit a deed conveying the residential real estate to the seller or
33	33	person making the extension of credit.
34	34	(b) A deed executed in violation of this section is voidable
35	35	unless a subsequent purchaser of the residential real estate, for
36	36	valuable consideration, obtains an interest in the property after
37	37	the deed was recorded without notice of the violation, including
38	38	notice provided by actual possession of the property by the grantor
39	39	of the deed. The residential real estate continues to be subject to
40	40	the security interest of a creditor who, without notice of the
41	41	violation, granted an extension of credit to a borrower based on the
42	42	deed executed in violation of this section.
43	43	(c) A purchaser or borrower must bring an action to void a
44	44	deed executed in violation of this section not later than the fourth
45	45	anniversary of the date the deed was recorded.
46	46	Sec. 21.003. CIVIL ACTION FOR DAMAGES. A person who
47	47	violates Section 21.002 is liable to the purchaser or borrower for:
48	48	(1) actual damages;
49	49	(2) exemplary damages in an amount equal to or greater
50	50	than $5,000 and not more than three times the amount of actual
51	51	damages;
52	52	(3) court costs; and
53	53	(4) reasonable attorney's fees.
54	54	SECTION 2. Section 24.004, Property Code, is amended to
55	55	read as follows:
56	56	Sec. 24.004. JURISDICTION; DISMISSAL. (a) Except as
57	57	provided by Subsection (b), a [A] justice court in the precinct in
58	58	which the real property is located has jurisdiction in eviction
59	59	suits. Eviction suits include forcible entry and detainer and
60	60	forcible detainer suits.
61	61	(b) A justice court does not have jurisdiction in a forcible
62	62	entry and detainer or forcible detainer suit and shall dismiss the
63	63	suit if the defendant files a sworn statement alleging the suit is
64	64	based on a deed executed in violation of Chapter 21, Business &
65	65	Commerce Code.
66	66	SECTION 3. This Act takes effect September 1, 2011.
67	67	* * * * *