| 1 | 1 | | 85R24186 BEE-F |
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| 2 | 2 | | By: Kuempel H.B. No. 2534 |
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| 3 | 3 | | Substitute the following for H.B. No. 2534: |
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| 4 | 4 | | By: Kuempel C.S.H.B. No. 2534 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to certain real estate sales, brokerage, and advertising |
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| 10 | 10 | | activities, certain functions of the Texas Real Estate Commission, |
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| 11 | 11 | | and the authorization of a ground lease with the Texas Facilities |
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| 12 | 12 | | Commission to construct or maintain a building. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Subchapter A, Chapter 1101, Occupations Code, is |
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| 15 | 15 | | amended by adding Section 1101.0045 to read as follows: |
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| 16 | 16 | | Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a) |
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| 17 | 17 | | A person may acquire an option or an interest in a contract to |
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| 18 | 18 | | purchase real property and then sell or offer to sell the option or |
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| 19 | 19 | | assign or offer to assign the contract without holding a license |
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| 20 | 20 | | issued under this chapter if the person: |
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| 21 | 21 | | (1) does not use the option or contract to purchase to |
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| 22 | 22 | | engage in real estate brokerage; and |
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| 23 | 23 | | (2) discloses the nature of the equitable interest to |
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| 24 | 24 | | any potential buyer. |
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| 25 | 25 | | (b) A person selling or offering to sell an option or |
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| 26 | 26 | | assigning or offering to assign an interest in a contract to |
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| 27 | 27 | | purchase real property without disclosing the nature of that |
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| 28 | 28 | | interest to a potential buyer is engaging in real estate brokerage. |
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| 29 | 29 | | SECTION 2. Section 1101.156(b), Occupations Code, is |
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| 30 | 30 | | amended to read as follows: |
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| 31 | 31 | | (b) The commission may not include in rules to prohibit |
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| 32 | 32 | | false, misleading, or deceptive practices by a person regulated by |
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| 33 | 33 | | the commission a rule that: |
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| 34 | 34 | | (1) restricts the use of any advertising medium; |
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| 35 | 35 | | (2) restricts the person's personal appearance or use |
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| 36 | 36 | | of the person's voice in an advertisement; |
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| 37 | 37 | | (3) relates to the size or duration of an |
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| 38 | 38 | | advertisement used by the person; [or] |
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| 39 | 39 | | (4) restricts the person's advertisement under an |
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| 40 | 40 | | assumed or [a] trade name that is authorized by a law of this state |
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| 41 | 41 | | and registered with the commission; or |
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| 42 | 42 | | (5) requires the term "broker," "agent," or a similar |
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| 43 | 43 | | designation or term, a reference to the commission, or the person's |
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| 44 | 44 | | license number to be included in the person's advertisement. |
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| 45 | 45 | | SECTION 3. Section 1101.652(b), Occupations Code, is |
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| 46 | 46 | | amended to read as follows: |
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| 47 | 47 | | (b) The commission may suspend or revoke a license issued |
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| 48 | 48 | | under this chapter or take other disciplinary action authorized by |
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| 49 | 49 | | this chapter if the license holder, while engaged in real estate |
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| 50 | 50 | | brokerage: |
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| 51 | 51 | | (1) acts negligently or incompetently; |
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| 52 | 52 | | (2) engages in conduct that is dishonest or in bad |
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| 53 | 53 | | faith or that demonstrates untrustworthiness; |
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| 54 | 54 | | (3) makes a material misrepresentation to a potential |
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| 55 | 55 | | buyer concerning a significant defect, including a latent |
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| 56 | 56 | | structural defect, known to the license holder that would be a |
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| 57 | 57 | | significant factor to a reasonable and prudent buyer in making a |
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| 58 | 58 | | decision to purchase real property; |
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| 59 | 59 | | (4) fails to disclose to a potential buyer a defect |
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| 60 | 60 | | described by Subdivision (3) that is known to the license holder; |
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| 61 | 61 | | (5) makes a false promise that is likely to influence a |
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| 62 | 62 | | person to enter into an agreement when the license holder is unable |
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| 63 | 63 | | or does not intend to keep the promise; |
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| 64 | 64 | | (6) pursues a continued and flagrant course of |
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| 65 | 65 | | misrepresentation or makes false promises through an agent or sales |
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| 66 | 66 | | agent, through advertising, or otherwise; |
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| 67 | 67 | | (7) fails to make clear to all parties to a real estate |
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| 68 | 68 | | transaction the party for whom the license holder is acting; |
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| 69 | 69 | | (8) receives compensation from more than one party to |
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| 70 | 70 | | a real estate transaction without the full knowledge and consent of |
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| 71 | 71 | | all parties to the transaction; |
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| 72 | 72 | | (9) fails within a reasonable time to properly account |
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| 73 | 73 | | for or remit money that is received by the license holder and that |
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| 74 | 74 | | belongs to another person; |
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| 75 | 75 | | (10) commingles money that belongs to another person |
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| 76 | 76 | | with the license holder's own money; |
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| 77 | 77 | | (11) pays a commission or a fee to or divides a |
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| 78 | 78 | | commission or a fee with a person other than a license holder or a |
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| 79 | 79 | | real estate broker or sales agent licensed in another state for |
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| 80 | 80 | | compensation for services as a real estate agent; |
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| 81 | 81 | | (12) fails to specify a definite termination date that |
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| 82 | 82 | | is not subject to prior notice in a contract, other than a contract |
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| 83 | 83 | | to perform property management services, in which the license |
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| 84 | 84 | | holder agrees to perform services for which a license is required |
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| 85 | 85 | | under this chapter; |
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| 86 | 86 | | (13) accepts, receives, or charges an undisclosed |
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| 87 | 87 | | commission, rebate, or direct profit on an expenditure made for a |
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| 88 | 88 | | principal; |
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| 89 | 89 | | (14) solicits, sells, or offers for sale real property |
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| 90 | 90 | | by means of a lottery; |
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| 91 | 91 | | (15) solicits, sells, or offers for sale real property |
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| 92 | 92 | | by means of a deceptive practice; |
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| 93 | 93 | | (16) acts in a dual capacity as broker and undisclosed |
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| 94 | 94 | | principal in a real estate transaction; |
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| 95 | 95 | | (17) guarantees or authorizes or permits a person to |
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| 96 | 96 | | guarantee that future profits will result from a resale of real |
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| 97 | 97 | | property; |
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| 98 | 98 | | (18) places a sign on real property offering the real |
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| 99 | 99 | | property for sale or lease without obtaining the written consent of |
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| 100 | 100 | | the owner of the real property or the owner's authorized agent; |
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| 101 | 101 | | (19) offers to sell or lease real property without the |
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| 102 | 102 | | knowledge and consent of the owner of the real property or the |
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| 103 | 103 | | owner's authorized agent; |
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| 104 | 104 | | (20) offers to sell or lease real property on terms |
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| 105 | 105 | | other than those authorized by the owner of the real property or the |
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| 106 | 106 | | owner's authorized agent; |
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| 107 | 107 | | (21) induces or attempts to induce a party to a |
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| 108 | 108 | | contract of sale or lease to break the contract for the purpose of |
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| 109 | 109 | | substituting a new contract; |
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| 110 | 110 | | (22) negotiates or attempts to negotiate the sale, |
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| 111 | 111 | | exchange, or lease of real property with an owner, landlord, buyer, |
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| 112 | 112 | | or tenant with knowledge that that person is a party to an |
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| 113 | 113 | | outstanding written contract that grants exclusive agency to |
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| 114 | 114 | | another broker in connection with the transaction; |
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| 115 | 115 | | (23) publishes or causes to be published an |
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| 116 | 116 | | advertisement [, including an advertisement by newspaper, radio, |
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| 117 | 117 | | television, the Internet, or display,] that: |
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| 118 | 118 | | (A) misleads or is likely to deceive the public; |
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| 119 | 119 | | (B) [,] tends to create a misleading impression; |
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| 120 | 120 | | (C) implies that a sales agent is responsible for |
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| 121 | 121 | | the operation of the broker's real estate brokerage business; [,] |
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| 122 | 122 | | or |
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| 123 | 123 | | (D) fails to include [identify] the name of the |
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| 124 | 124 | | broker for whom the license holder acts, which name may be the |
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| 125 | 125 | | licensed name, assumed name, or trade name of the broker as |
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| 126 | 126 | | authorized by a law of this state and registered with the commission |
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| 127 | 127 | | [person causing the advertisement to be published as a licensed |
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| 128 | 128 | | broker or agent]; |
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| 129 | 129 | | (24) withholds from or inserts into a statement of |
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| 130 | 130 | | account or invoice a statement that the license holder knows makes |
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| 131 | 131 | | the statement of account or invoice inaccurate in a material way; |
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| 132 | 132 | | (25) publishes or circulates an unjustified or |
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| 133 | 133 | | unwarranted threat of a legal proceeding or other action; |
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| 134 | 134 | | (26) establishes an association by employment or |
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| 135 | 135 | | otherwise with a person other than a license holder if the person is |
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| 136 | 136 | | expected or required to act as a license holder; |
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| 137 | 137 | | (27) aids, abets, or conspires with another person to |
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| 138 | 138 | | circumvent this chapter; |
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| 139 | 139 | | (28) fails or refuses to provide, on request, a copy of |
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| 140 | 140 | | a document relating to a real estate transaction to a person who |
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| 141 | 141 | | signed the document; |
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| 142 | 142 | | (29) fails to advise a buyer in writing before the |
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| 143 | 143 | | closing of a real estate transaction that the buyer should: |
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| 144 | 144 | | (A) have the abstract covering the real estate |
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| 145 | 145 | | that is the subject of the contract examined by an attorney chosen |
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| 146 | 146 | | by the buyer; or |
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| 147 | 147 | | (B) be provided with or obtain a title insurance |
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| 148 | 148 | | policy; |
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| 149 | 149 | | (30) fails to deposit, within a reasonable time, money |
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| 150 | 150 | | the license holder receives as escrow or trust funds in a real |
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| 151 | 151 | | estate transaction: |
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| 152 | 152 | | (A) in trust with a title company authorized to |
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| 153 | 153 | | do business in this state; or |
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| 154 | 154 | | (B) in a custodial, trust, or escrow account |
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| 155 | 155 | | maintained for that purpose in a banking institution authorized to |
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| 156 | 156 | | do business in this state; |
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| 157 | 157 | | (31) disburses money deposited in a custodial, trust, |
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| 158 | 158 | | or escrow account, as provided in Subdivision (30), before the |
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| 159 | 159 | | completion or termination of the real estate transaction; |
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| 160 | 160 | | (32) discriminates against an owner, potential buyer, |
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| 161 | 161 | | landlord, or potential tenant on the basis of race, color, |
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| 162 | 162 | | religion, sex, disability, familial status, national origin, or |
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| 163 | 163 | | ancestry, including directing a prospective buyer or tenant |
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| 164 | 164 | | interested in equivalent properties to a different area based on |
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| 165 | 165 | | the race, color, religion, sex, disability, familial status, |
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| 166 | 166 | | national origin, or ancestry of the potential owner or tenant; or |
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| 167 | 167 | | (33) disregards or violates this chapter. |
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| 168 | 168 | | SECTION 4. Section 1105.003(f), Occupations Code, is |
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| 169 | 169 | | amended to read as follows: |
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| 170 | 170 | | (f) Not later than August 31 of each fiscal year, the agency |
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| 171 | 171 | | shall remit [$750,000] to the general revenue fund the sum of |
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| 172 | 172 | | $750,000 minus amounts expended each fiscal year until September 1, |
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| 173 | 173 | | 2029, to construct or maintain a building in the Capitol Complex, |
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| 174 | 174 | | including amounts expended for repayment of a construction loan, to |
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| 175 | 175 | | be developed, constructed, maintained, and operated in conjunction |
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| 176 | 176 | | with the Texas Facilities Commission and subject to Chapters 443, |
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| 177 | 177 | | 2165, and 2166, Government Code, at 203 West Martin Luther King, |
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| 178 | 178 | | Jr., Boulevard designated as Parking Lot 19. |
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| 179 | 179 | | SECTION 5. Subchapter D, Chapter 5, Property Code, is |
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| 180 | 180 | | amended by adding Section 5.086 to read as follows: |
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| 181 | 181 | | Sec. 5.086. EQUITABLE INTEREST DISCLOSURE. Before entering |
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| 182 | 182 | | into a contract, a person selling an option or assigning an interest |
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| 183 | 183 | | in a contract to purchase real property must disclose to any |
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| 184 | 184 | | potential buyer that the person is selling only an option or |
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| 185 | 185 | | assigning an interest in a contract and that the person does not |
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| 186 | 186 | | have legal title to the real property. |
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| 187 | 187 | | SECTION 6. Notwithstanding Section 2165.259, Government |
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| 188 | 188 | | Code, for purposes of constructing a building in the Capitol |
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| 189 | 189 | | Complex pursuant to Section 1105.003(f), Occupations Code, as |
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| 190 | 190 | | amended by this Act, the Texas Facilities Commission has the |
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| 191 | 191 | | authority to enter into a ground lease with the Texas Real Estate |
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| 192 | 192 | | Commission pursuant to Subchapter D, Chapter 2165, Government Code, |
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| 193 | 193 | | for the location of a building at the following described real |
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| 194 | 194 | | property, also known as 203 West Martin Luther King, Jr., Boulevard |
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| 195 | 195 | | and designated as Parking Lot 19: |
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| 196 | 196 | | The Northeast 1/4, the North 1/2 of the Southeast 1/4, and the |
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| 197 | 197 | | East 5 feet of the Northwest 1/4 and East 5 feet of the North 1/2 of |
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| 198 | 198 | | the Southwest 1/4, all in Out-lot No. 42, Division "E", in the City |
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| 199 | 199 | | of Austin, Travis County Texas. |
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| 200 | 200 | | SECTION 7. (a) Except as provided by Subsection (b) of this |
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| 201 | 201 | | section, this Act takes effect September 1, 2017. |
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| 202 | 202 | | (b) Section 1105.003(f), Occupations Code, as amended by |
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| 203 | 203 | | this Act, takes effect September 1, 2019. |
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