| 1 | 1 | | 88R6514 SHH-F |
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| 2 | 2 | | By: Springer S.B. No. 613 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to certain sales or purported sales of homestead property |
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| 8 | 8 | | that are classified as loans. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 41.006(a) and (c), Property Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subsection (c), any sale or |
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| 13 | 13 | | purported sale in whole or in part of a homestead at a fixed |
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| 14 | 14 | | purchase price, inclusive of any noncash consideration or other |
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| 15 | 15 | | things of value, that is less than the appraised fair market value |
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| 16 | 16 | | of the property at the time of the sale or purported sale, and in |
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| 17 | 17 | | connection with which the buyer of the property executes a lease of |
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| 18 | 18 | | the property to the seller at lease payments that exceed the fair |
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| 19 | 19 | | rental value of the property, is considered to be a loan with all |
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| 20 | 20 | | payments made from the seller to the buyer in excess of the sales |
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| 21 | 21 | | price considered to be interest subject to Title 4, Finance Code. |
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| 22 | 22 | | (c) This section does not apply to: |
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| 23 | 23 | | (1) the sale of a family homestead to a parent, |
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| 24 | 24 | | stepparent, grandparent, child, stepchild, brother, half brother, |
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| 25 | 25 | | sister, half sister, or grandchild of an adult member of the family; |
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| 26 | 26 | | or |
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| 27 | 27 | | (2) a transaction described by Subsection (a) that |
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| 28 | 28 | | includes an option agreement. |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2023. |
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