Texas 2015 - 84th Regular

Texas House Bill HB2214 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R19185 JTS-D
2	2	By: Guillen, Anderson of Dallas, Lozano H.B. No. 2214
3	3	Substitute the following for H.B. No. 2214:
4	4	By: Anderson of Dallas C.S.H.B. No. 2214
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the use of earnest money contracts to purchase land in
10	10	certain border and economically distressed counties; amending
11	11	provisions subject to a criminal penalty.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Sections 232.033(a) and (h), Local Government
14	14	Code, are amended to read as follows:
15	15	(a) Brochures, publications, [and] advertising of any form,
16	16	and earnest money contracts relating to [subdivided] land required
17	17	to be platted under this subchapter:
18	18	(1) may not contain any misrepresentation; [and]
19	19	(2) except for a for-sale sign posted on the property
20	20	that is no larger than three feet by three feet, must accurately
21	21	describe the availability of water and sewer service facilities and
22	22	electric and gas utilities; and
23	23	(3) if a plat for the land has not been finally
24	24	approved and recorded, must include a notice that:
25	25	(A) subject to Section 232.045, a contract for
26	26	the sale of any portion of the land may not be entered into until the
27	27	land receives final plat approval under Section 232.024; and
28	28	(B) the land may not be possessed or occupied
29	29	until:
30	30	(i) the land receives final plat approval
31	31	under Section 232.024; and
32	32	(ii) all water and sewer service facilities
33	33	for the lot are connected or installed in compliance with the model
34	34	rules adopted under Section 16.343, Water Code.
35	35	(h) A person who is a seller of lots for which a plat is
36	36	required under this subchapter [in a subdivision], or a subdivider
37	37	or an agent of a seller or subdivider, commits an offense if the
38	38	person knowingly authorizes or assists in the publication,
39	39	advertising, distribution, or circulation of any statement or
40	40	representation that the person knows is false concerning any
41	41	[subdivided] land offered for sale or lease. An offense under this
42	42	section is a Class A misdemeanor.
43	43	SECTION 2. Subchapter B, Chapter 232, Local Government
44	44	Code, is amended by adding Section 232.045 to read as follows:
45	45	Sec. 232.045. EARNEST MONEY CONTRACTS. (a) This section
46	46	applies in addition to other applicable law and prevails to the
47	47	extent of a conflict with that other law. This section applies only
48	48	to a person who is a seller or subdivider and who is a licensed,
49	49	registered, or otherwise credentialed residential mortgage loan
50	50	originator under applicable state law, federal law, and the
51	51	Nationwide Mortgage Licensing System and Registry. A person may,
52	52	before a plat has been finally approved and recorded:
53	53	(1) enter into an earnest money contract with a
54	54	potential purchaser and accept payment under the contract in an
55	55	amount of $250 or less; and
56	56	(2) advertise in accordance with Section 232.033.
57	57	(b) An earnest money contract is void if the plat for the
58	58	land has not been finally approved and recorded before the 91st day
59	59	after the date the earnest money contract is signed by the potential
60	60	purchaser, unless the potential purchaser agrees in writing to
61	61	extend the period for plat approval and recording for an additional
62	62	90-day period. Only one extension may be granted under this
63	63	subsection.
64	64	(c) If an earnest money contract is void under Subsection
65	65	(b), the seller shall refund all earnest money paid to the potential
66	66	purchaser not later than the 30th day after the date the earnest
67	67	money contract becomes void. If the seller fails to refund the
68	68	earnest money to the potential purchaser in violation of this
69	69	subsection, the potential purchaser, in a suit to recover the
70	70	earnest money, may recover an amount equal to three times the amount
71	71	of the earnest money required to be refunded, plus reasonable
72	72	attorney's fees.
73	73	(d) Before entering into an earnest money contract, a person
74	74	must provide written notice to the attorney general and to the local
75	75	government responsible for approving the plat. The notice must
76	76	include:
77	77	(1) a statement of intent to enter into an earnest
78	78	money contract under this section;
79	79	(2) a legal description of the land to be included in
80	80	the subdivision;
81	81	(3) each county in which all or part of the subdivision
82	82	is located; and
83	83	(4) the number of proposed individual lots to be
84	84	included in the subdivision.
85	85	(e) An earnest money contract must contain the following
86	86	statement:
87	87	"NOTICE: THIS IS AN EARNEST MONEY CONTRACT ONLY. THE MAXIMUM
88	88	AMOUNT THAT THE SELLER MAY COLLECT UNDER THIS CONTRACT IS $250. THE
89	89	SELLER MAY NOT DEMAND ANY ADDITIONAL PAYMENT UNTIL A PLAT OF THE
90	90	SUBDIVISION HAS BEEN FILED WITH THE COUNTY CLERK."
91	91	SECTION 3. Section 232.021(9), Local Government Code, is
92	92	repealed.
93	93	SECTION 4. This Act takes effect September 1, 2015.