Bill Text: TX HB311 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to an executory contract for the conveyance of real property; providing a civil penalty.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Passed) 2015-06-19 - Effective on 9/1/15 [HB311 Detail]
Download: Texas-2015-HB311-Enrolled.html
| H.B. No. 311 | ||
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| relating to an executory contract for the conveyance of real | ||
| property; providing a civil penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 5.062(e), Property Code, is amended to | ||
| read as follows: | ||
| (e) Sections 5.066, 5.067, 5.071, 5.075, 5.079, 5.081, and | ||
| 5.082 do not apply to an executory contract described by Subsection | ||
| (a)(2). | ||
| SECTION 2. Section 5.064, Property Code, is amended to read | ||
| as follows: | ||
| Sec. 5.064. SELLER'S REMEDIES ON DEFAULT. A seller may | ||
| enforce the remedy of rescission or of forfeiture and acceleration | ||
| against a purchaser in default under an executory contract for | ||
| conveyance of real property only if: | ||
| (1) the seller notifies the purchaser of: | ||
| (A) the seller's intent to enforce a remedy under | ||
| this section; and | ||
| (B) the purchaser's right to cure the default | ||
| within the 30-day period described by Section 5.065; | ||
| (2) the purchaser fails to cure the default within the | ||
| 30-day period described by Section 5.065; [ |
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| (3) Section 5.066 does not apply; and | ||
| (4) the contract has not been recorded in the county in | ||
| which the property is located. | ||
| SECTION 3. Section 5.066(a), Property Code, is amended to | ||
| read as follows: | ||
| (a) If a purchaser defaults after the purchaser has paid 40 | ||
| percent or more of the amount due or the equivalent of 48 monthly | ||
| payments under the executory contract or, regardless of the amount | ||
| the purchaser has paid, the executory contract has been recorded, | ||
| the seller is granted the power to sell, through a trustee | ||
| designated by the seller, the purchaser's interest in the property | ||
| as provided by this section. The seller may not enforce the remedy | ||
| of rescission or of forfeiture and acceleration after the contract | ||
| has been recorded. | ||
| SECTION 4. Section 5.070, Property Code, is amended by | ||
| adding Subsection (d) to read as follows: | ||
| (d) If the executory contract is recorded, the seller is not | ||
| required to continue insuring the property. | ||
| SECTION 5. Section 5.076, Property Code, is amended by | ||
| adding Subsection (e) to read as follows: | ||
| (e) A seller who violates this section is liable to the | ||
| purchaser in the same manner and for the same amount as a seller who | ||
| violates Section 5.079 is liable to a purchaser, except the damages | ||
| may not exceed $500 for each calendar year of noncompliance. This | ||
| subsection does not limit or affect any other rights or remedies a | ||
| purchaser has under other law. | ||
| SECTION 6. Section 5.077, Property Code, is amended by | ||
| adding Subsection (e) to read as follows: | ||
| (e) The requirements of this section continue to apply after | ||
| a purchaser obtains title to the property by conversion or any other | ||
| process. | ||
| SECTION 7. Section 5.079(a), Property Code, is amended to | ||
| read as follows: | ||
| (a) A recorded executory contract shall be the same as a | ||
| deed with a vendor's lien. The vendor's lien is for the amount of | ||
| the unpaid contract price, less any lawful deductions, and may be | ||
| enforced by foreclosure sale under Section 5.066 or by judicial | ||
| foreclosure. A general warranty is implied unless otherwise | ||
| limited by the recorded executory contract. If an executory | ||
| contract has not been recorded or converted under Section 5.081, | ||
| the [ |
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| property covered by the executory contract to the purchaser not | ||
| later than the 30th day after the date the seller receives the | ||
| purchaser's final payment due under the contract. | ||
| SECTION 8. Section 5.081, Property Code, is amended by | ||
| amending Subsection (a) and adding Subsection (h) to read as | ||
| follows: | ||
| (a) A purchaser, at any time and without paying penalties or | ||
| charges of any kind, is entitled to convert the purchaser's | ||
| interest in property under an executory contract into recorded, | ||
| legal title in accordance with this section, regardless of whether | ||
| the seller has recorded the executory contract. | ||
| (h) This section may not be construed to limit the | ||
| purchaser's interest in the property established by other law, if | ||
| any, or any other rights of the purchaser under this subchapter. | ||
| SECTION 9. (a) The changes in law made by this Act to | ||
| Sections 5.064 and 5.066, Property Code, apply only to a default | ||
| that occurs on or after the effective date of this Act. A default | ||
| that occurred before the effective date of this Act is governed by | ||
| the law in effect on the date the default occurred, and that law is | ||
| continued in effect for that purpose. | ||
| (b) Sections 5.079 and 5.081, Property Code, as amended by | ||
| this Act, apply to an executory contract entered into before, on, or | ||
| after the effective date of this Act. | ||
| (c) The changes in law made by this Act to Sections 5.070 and | ||
| 5.076, Property Code, apply to an executory contract entered into | ||
| on or after the effective date of this Act. An executory contract | ||
| entered into before the effective date of this Act is governed by | ||
| the law in effect on the date the contract was entered into, and | ||
| that law is continued in effect for that purpose. | ||
| (d) The changes in law made by this Act to Section 5.077, | ||
| Property Code, apply to an executory contract that is converted to | ||
| transfer legal title on or after the effective date of this Act. An | ||
| executory contract that is converted to transfer legal title before | ||
| the effective date of this Act is governed by the law in effect on | ||
| the date the contract was entered into, and that law is continued in | ||
| effect for that purpose. | ||
| SECTION 10. This Act takes effect September 1, 2015. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 311 was passed by the House on April | ||
| 23, 2015, by the following vote: Yeas 132, Nays 7, 2 present, not | ||
| voting; that the House refused to concur in Senate amendments to | ||
| H.B. No. 311 on May 26, 2015, and requested the appointment of a | ||
| conference committee to consider the differences between the two | ||
| houses; and that the House adopted the conference committee report | ||
| on H.B. No. 311 on May 30, 2015, by the following vote: Yeas 131, | ||
| Nays 11, 3 present, not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 311 was passed by the Senate, with | ||
| amendments, on May 22, 2015, by the following vote: Yeas 27, Nays | ||
| 3; at the request of the House, the Senate appointed a conference | ||
| committee to consider the differences between the two houses; and | ||
| that the Senate adopted the conference committee report on H.B. No. | ||
| 311 on May 30, 2015, by the following vote: Yeas 26, Nays 4, 1 | ||
| present, not voting. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: __________________ | ||
| Date | ||
| __________________ | ||
| Governor | ||
