85R7461 TSR-F
By: Leach H.B. No. 2385
A BILL TO BE ENTITLED
AN ACT
relating to benefits offered to purchasers by builders of new
residences.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 113 to read as follows:
CHAPTER 113. CERTAIN ACTS BY BUILDERS OF NEW RESIDENCES PROHIBITED
Sec. 113.001. DEFINITIONS. In this chapter:
(1) "Builder" means a business entity or individual
who, for a fixed price, commission, fee, wage, or other
compensation:
(A) constructs or supervises or manages the
construction of new residences; and
(B) sells or has the intent to sell the new
residences immediately following completion of the construction.
(2) "Residence" means a single-family home, duplex,
triplex, or quadruplex used or intended to be used as a dwelling.
(3) "Residential mortgage loan" has the meaning
assigned by Section 180.002, Finance Code.
(4) "Residential mortgage loan company" has the
meaning assigned by Section 156.002, Finance Code.
(5) "Title insurance company" has the meaning assigned
by Section 2501.003, Insurance Code.
Sec. 113.002. BUILDER PROHIBITED FROM PROVIDING BENEFIT
CONTINGENT ON USE OF PREFERRED LENDER OR TITLE COMPANY. A builder
may not offer or provide any benefit to a person as consideration
for the person's agreement to use a residential mortgage loan
company or title insurance company specified by the builder to
obtain a residential mortgage loan or title insurance for the
purchase of a new residence from the builder.
Sec. 113.003. CIVIL ACTION. (a) A person who is offered or
provided a benefit by a builder in violation of Section 113.002 may
bring an action against the builder for:
(1) any actual damages arising from the violation; and
(2) exemplary damages in an amount of not less than
$10,000.
(b) Notwithstanding Section 41.004(a), Civil Practice and
Remedies Code, a court shall award exemplary damages under
Subsection (a)(2) to a prevailing party irrespective of whether the
party is awarded actual damages.
(c) If the person bringing an action under this section
prevails, the court may award the person reasonable attorney's fees
and court costs.
SECTION 2. Chapter 113, Business & Commerce Code, as added
by this Act, applies only to a contract for the purchase of a new
residence entered into on or after the effective date of this Act.
A contract for the purchase of a new residence entered into before
the effective date of this Act is governed by the law in effect on
the date the contract is entered into, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.