Bill Text: TX HB2385 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to benefits offered to purchasers by builders of new residences.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-20 - Referred to Business & Industry [HB2385 Detail]
Download: Texas-2017-HB2385-Introduced.html
| 85R7461 TSR-F | ||
| By: Leach | H.B. No. 2385 | |
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| 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. | ||
