Texas 2017 - 85th Regular

Texas Senate Bill SB2212 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2212
	1	+	85R24186 BEE-F
	2	+	By: Hancock S.B. No. 2212
	3	+	(Kuempel)
	4	+	Substitute the following for S.B. No. 2212: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to certain real estate sales, brokerage, and advertising
6		-	activities, certain functions of the Texas Real Estate Commission.
	10	+	activities, certain functions of the Texas Real Estate Commission,
	11	+	and the authorization of a ground lease with the Texas Facilities
	12	+	Commission to construct or maintain a building.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Subchapter A, Chapter 1101, Occupations Code, is
9	15		amended by adding Section 1101.0045 to read as follows:
10		-	Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY.
11		-	~~(a)~~ A person may acquire an option or an interest in a contract to
	16	+	Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a)
	17	+	A person may acquire an option or an interest in a contract to
12	18		purchase real property and then sell or offer to sell the option or
13	19		assign or offer to assign the contract without holding a license
14	20		issued under this chapter if the person:
15	21		(1) does not use the option or contract to purchase to
16	22		engage in real estate brokerage; and
17	23		(2) discloses the nature of the equitable interest to
18	24		any potential buyer.
19	25		(b) A person selling or offering to sell an option or
20	26		assigning or offering to assign an interest in a contract to
21	27		purchase real property without disclosing the nature of that
22	28		interest to a potential buyer is engaging in real estate brokerage.
23	29		SECTION 2. Section 1101.156(b), Occupations Code, is
24	30		amended to read as follows:
25	31		(b) The commission may not include in rules to prohibit
26	32		false, misleading, or deceptive practices by a person regulated by
27	33		the commission a rule that:
28	34		(1) restricts the use of any advertising medium;
29	35		(2) restricts the person's personal appearance or use
30	36		of the person's voice in an advertisement;
31	37		(3) relates to the size or duration of an
32	38		advertisement used by the person; [or]
33	39		(4) restricts the person's advertisement under an
34	40		assumed or [a] trade name that is authorized by a law of this state
35	41		and registered with the commission; or
36	42		(5) requires the term "broker," "agent," or a similar
37	43		designation or term, a reference to the commission, or the person's
38	44		license number to be included in the person's advertisement.
39	45		SECTION 3. Section 1101.652(b), Occupations Code, is
40	46		amended to read as follows:
41	47		(b) The commission may suspend or revoke a license issued
42	48		under this chapter or take other disciplinary action authorized by
43	49		this chapter if the license holder, while engaged in real estate
44	50		brokerage:
45	51		(1) acts negligently or incompetently;
46	52		(2) engages in conduct that is dishonest or in bad
47	53		faith or that demonstrates untrustworthiness;
48	54		(3) makes a material misrepresentation to a potential
49	55		buyer concerning a significant defect, including a latent
50	56		structural defect, known to the license holder that would be a
51	57		significant factor to a reasonable and prudent buyer in making a
52	58		decision to purchase real property;
53	59		(4) fails to disclose to a potential buyer a defect
54	60		described by Subdivision (3) that is known to the license holder;
55	61		(5) makes a false promise that is likely to influence a
56	62		person to enter into an agreement when the license holder is unable
57	63		or does not intend to keep the promise;
58	64		(6) pursues a continued and flagrant course of
59	65		misrepresentation or makes false promises through an agent or sales
60	66		agent, through advertising, or otherwise;
61	67		(7) fails to make clear to all parties to a real estate
62	68		transaction the party for whom the license holder is acting;
63	69		(8) receives compensation from more than one party to
64	70		a real estate transaction without the full knowledge and consent of
65	71		all parties to the transaction;
66	72		(9) fails within a reasonable time to properly account
67	73		for or remit money that is received by the license holder and that
68	74		belongs to another person;
69	75		(10) commingles money that belongs to another person
70	76		with the license holder's own money;
71	77		(11) pays a commission or a fee to or divides a
72	78		commission or a fee with a person other than a license holder or a
73	79		real estate broker or sales agent licensed in another state for
74	80		compensation for services as a real estate agent;
75	81		(12) fails to specify a definite termination date that
76	82		is not subject to prior notice in a contract, other than a contract
77	83		to perform property management services, in which the license
78	84		holder agrees to perform services for which a license is required
79	85		under this chapter;
80	86		(13) accepts, receives, or charges an undisclosed
81	87		commission, rebate, or direct profit on an expenditure made for a
82	88		principal;
83	89		(14) solicits, sells, or offers for sale real property
84	90		by means of a lottery;
85	91		(15) solicits, sells, or offers for sale real property
86	92		by means of a deceptive practice;
87	93		(16) acts in a dual capacity as broker and undisclosed
88	94		principal in a real estate transaction;
89	95		(17) guarantees or authorizes or permits a person to
90	96		guarantee that future profits will result from a resale of real
91	97		property;
92	98		(18) places a sign on real property offering the real
93	99		property for sale or lease without obtaining the written consent of
94	100		the owner of the real property or the owner's authorized agent;
95	101		(19) offers to sell or lease real property without the
96	102		knowledge and consent of the owner of the real property or the
97	103		owner's authorized agent;
98	104		(20) offers to sell or lease real property on terms
99	105		other than those authorized by the owner of the real property or the
100	106		owner's authorized agent;
101	107		(21) induces or attempts to induce a party to a
102	108		contract of sale or lease to break the contract for the purpose of
103	109		substituting a new contract;
104	110		(22) negotiates or attempts to negotiate the sale,
105	111		exchange, or lease of real property with an owner, landlord, buyer,
106	112		or tenant with knowledge that that person is a party to an
107	113		outstanding written contract that grants exclusive agency to
108	114		another broker in connection with the transaction;
109	115		(23) publishes or causes to be published an
110	116		advertisement [, including an advertisement by newspaper, radio,
111	117		television, the Internet, or display,] that:
112	118		(A) misleads or is likely to deceive the public;
113	119		(B) [,] tends to create a misleading impression;
114	120		(C) implies that a sales agent is responsible for
115		-	the operation of the broker's real estate brokerage business;[,] or
	121	+	the operation of the broker's real estate brokerage business; [,]
	122	+	or
116	123		(D) fails to include [identify] the name of the
117	124		broker for whom the license holder acts, which name may be the
118	125		licensed name, assumed name, or trade name of the broker as
119	126		authorized by a law of this state and registered with the commission
120	127		[person causing the advertisement to be published as a licensed
121	128		broker or agent];
122	129		(24) withholds from or inserts into a statement of
123	130		account or invoice a statement that the license holder knows makes
124	131		the statement of account or invoice inaccurate in a material way;
125	132		(25) publishes or circulates an unjustified or
126	133		unwarranted threat of a legal proceeding or other action;
127	134		(26) establishes an association by employment or
128	135		otherwise with a person other than a license holder if the person is
129	136		expected or required to act as a license holder;
130	137		(27) aids, abets, or conspires with another person to
131	138		circumvent this chapter;
132	139		(28) fails or refuses to provide, on request, a copy of
133	140		a document relating to a real estate transaction to a person who
134	141		signed the document;
135	142		(29) fails to advise a buyer in writing before the
136	143		closing of a real estate transaction that the buyer should:
137	144		(A) have the abstract covering the real estate
138	145		that is the subject of the contract examined by an attorney chosen
139	146		by the buyer; or
140	147		(B) be provided with or obtain a title insurance
141	148		policy;
142	149		(30) fails to deposit, within a reasonable time, money
143	150		the license holder receives as escrow or trust funds in a real
144	151		estate transaction:
145	152		(A) in trust with a title company authorized to
146	153		do business in this state; or
147	154		(B) in a custodial, trust, or escrow account
148	155		maintained for that purpose in a banking institution authorized to
149	156		do business in this state;
150	157		(31) disburses money deposited in a custodial, trust,
151	158		or escrow account, as provided in Subdivision (30), before the
152	159		completion or termination of the real estate transaction;
153	160		(32) discriminates against an owner, potential buyer,
154	161		landlord, or potential tenant on the basis of race, color,
155	162		religion, sex, disability, familial status, national origin, or
156	163		ancestry, including directing a prospective buyer or tenant
157	164		interested in equivalent properties to a different area based on
158	165		the race, color, religion, sex, disability, familial status,
159	166		national origin, or ancestry of the potential owner or tenant; or
160	167		(33) disregards or violates this chapter.
161		-	SECTION 4. Subchapter D, Chapter 5, Property Code, is
	168	+	SECTION 4. Section 1105.003(f), Occupations Code, is
	169	+	amended to read as follows:
	170	+	(f) Not later than August 31 of each fiscal year, the agency
	171	+	shall remit [$750,000] to the general revenue fund the sum of
	172	+	$750,000 minus amounts expended each fiscal year until September 1,
	173	+	2029, to construct or maintain a building in the Capitol Complex,
	174	+	including amounts expended for repayment of a construction loan, to
	175	+	be developed, constructed, maintained, and operated in conjunction
	176	+	with the Texas Facilities Commission and subject to Chapters 443,
	177	+	2165, and 2166, Government Code, at 203 West Martin Luther King,
	178	+	Jr., Boulevard designated as Parking Lot 19.
	179	+	SECTION 5. Subchapter D, Chapter 5, Property Code, is
162	180		amended by adding Section 5.086 to read as follows:
163	181		Sec. 5.086. EQUITABLE INTEREST DISCLOSURE. Before entering
164	182		into a contract, a person selling an option or assigning an interest
165	183		in a contract to purchase real property must disclose to any
166	184		potential buyer that the person is selling only an option or
167	185		assigning an interest in a contract and that the person does not
168	186		have legal title to the real property.
169		-	SECTION 5. This Act takes effect September 1, 2017.
170		-	______________________________ ______________________________
171		-	President of the Senate Speaker of the House
172		-	I hereby certify that S.B. No. 2212 passed the Senate on
173		-	April 25, 2017, by the following vote: Yeas 30, Nays 0, one
174		-	present not voting; and that the Senate concurred in House
175		-	amendments on May 26, 2017, by the following vote: Yeas 30,
176		-	Nays 0, one present not voting.
177		-	______________________________
178		-	Secretary of the Senate
179		-	I hereby certify that S.B. No. 2212 passed the House, with
180		-	amendments, on May 23, 2017, by the following vote: Yeas 143,
181		-	Nays 0, one present not voting.
182		-	______________________________
183		-	Chief Clerk of the House
184		-	Approved:
185		-	______________________________
186		-	Date
187		-	______________________________
188		-	Governor
	187	+	SECTION 6. Notwithstanding Section 2165.259, Government
	188	+	Code, for purposes of constructing a building in the Capitol
	189	+	Complex pursuant to Section 1105.003(f), Occupations Code, as
	190	+	amended by this Act, the Texas Facilities Commission has the
	191	+	authority to enter into a ground lease with the Texas Real Estate
	192	+	Commission pursuant to Subchapter D, Chapter 2165, Government Code,
	193	+	for the location of a building at the following described real
	194	+	property, also known as 203 West Martin Luther King, Jr., Boulevard
	195	+	and designated as Parking Lot 19:
	196	+	The Northeast 1/4, the North 1/2 of the Southeast 1/4, and the
	197	+	East 5 feet of the Northwest 1/4 and East 5 feet of the North 1/2 of
	198	+	the Southwest 1/4, all in Out-lot No. 42, Division "E", in the City
	199	+	of Austin, Travis County Texas.
	200	+	SECTION 7. (a) Except as provided by Subsection (b) of this
	201	+	section, this Act takes effect September 1, 2017.
	202	+	(b) Section 1105.003(f), Occupations Code, as amended by
	203	+	this Act, takes effect September 1, 2019.