LegalTips.ORG - Texas PROPERTY CODE

§ 5.001. FEE SIMPLE. (a) An estate in land that is
conveyed or devised is a fee simple unless the estate is limited by
express words or unless a lesser estate is conveyed or devised by
construction or operation of law. Words previously necessary at
common law to transfer a fee simple estate are not necessary.
(b) This section applies only to a conveyance occurring on
or after February 5, 1840.

Acts 1983, 68th Leg., p. 3480, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.002. FAILING AS A CONVEYANCE. An instrument
intended as a conveyance of real property or an interest in real
property that, because of this chapter, fails as a conveyance in
whole or in part is enforceable to the extent permitted by law as a
contract to convey the property or interest.

Acts 1983, 68th Leg., p. 3480, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.003. PARTIAL CONVEYANCE. (a) An alienation of
real property that purports to transfer a greater right or estate in
the property than the person making the alienation may lawfully
transfer alienates only the right or estate that the person may
convey.
(b) Neither the alienation by deed or will of an estate on
which a remainder depends nor the union of the estate with an
inheritance by purchase or descent affects the remainder.

Acts 1983, 68th Leg., p. 3480, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.004. CONVEYANCE BY AUTHORIZED OFFICER. (a) A
conveyance of real property by an officer legally authorized to
sell the property under a judgment of a court within the state
passes absolute title to the property to the purchaser.
(b) This section does not affect the rights of a person who
is not or who does not claim under a party to the conveyance or
judgment.

Acts 1983, 68th Leg., p. 3480, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.005. ALIENS. An alien has the same real and
personal property rights as a United States citizen.

Acts 1983, 68th Leg., p. 3481, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.006. ATTORNEY'S FEES IN BREACH OF RESTRICTIVE
COVENANT ACTION. (a) In an action based on breach of a
restrictive covenant pertaining to real property, the court shall
allow to a prevailing party who asserted the action reasonable
attorney's fees in addition to the party's costs and claim.
(b) To determine reasonable attorney's fees, the court
shall consider:
(1) the time and labor required;
(2) the novelty and difficulty of the questions;
(3) the expertise, reputation, and ability of the
attorney; and
(4) any other factor.

Acts 1983, 68th Leg., p. 3481, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.007. VENDOR AND PURCHASER RISK ACT. (a) Any
contract made in this state for the purchase and sale of real
property shall be interpreted as including an agreement that the
parties have the rights and duties prescribed by this section,
unless the contract expressly provides otherwise.
(b) If, when neither the legal title nor the possession of
the subject matter of the contract has been transferred, all or a
material part of the property is destroyed without fault of the
purchaser or is taken by eminent domain, the vendor may not enforce
the contract, and the purchaser is entitled to recover any portion
of the contract price paid.
(c) If, when either the legal title or the possession of the
subject matter of the contract has been transferred, all or any part
of the property is destroyed without fault of the vendor or is taken
by eminent domain, the purchaser is not relieved from the duty to
pay the contract price, nor is the purchaser entitled to recover any
portion of the price already paid.
(d) This section shall be interpreted and construed to
accomplish its general purpose to make uniform the law of those
states that enact the Uniform Vendor and Purchaser Risk Act.
(e) This section may be cited as the Uniform Vendor and
Purchaser Risk Act.

Added by Acts 1989, 71st Leg., ch. 1002, § 1, eff. Sept. 1, 1989.

§ 5.008. SELLER'S DISCLOSURE OF PROPERTY CONDITION. (a)
A seller of residential real property comprising not more than one
dwelling unit located in this state shall give to the purchaser of
the property a written notice as prescribed by this section or a
written notice substantially similar to the notice prescribed by
this section which contains, at a minimum, all of the items in the
notice prescribed by this section.
(b) The notice must be executed and must, at a minimum, read
substantially similar to the following:

CONCERNING THE PROPERTY AT ___________________________________

SELLER'S DISCLOSURE NOTICE
(Street Address and City)

THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF
THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY
SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR
WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT
A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS.

Seller __ is __ is not occupying the Property.

If unoccupied, how long since Seller has occupied the Property?

________________________________________________________________

1. The Property has the items checked below:

Write Yes (Y), No (N), or Unknown (U). __Range __Oven __Microwave
__Dishwasher __Trash Compactor __Disposal
__Washer/Dryer __Window __Rain Gutters
Hookups Screens
__Security __Fire Detection __Intercom
System Equipment System
__TV Antenna __Cable TV __Satellite
Wiring Dish
__Ceiling Fan(s) __Attic Fan(s) __Exhaust
Fan(s)
__Central A/C __Central Heating __Wall/Window Air
Conditioning
__Plumbing System __Septic System __Public Sewer
System
__Patio/Decking __Outdoor Grill __Fences
__Pool __Sauna __Spa
__Hot Tub
__Pool Equipment __Pool Heater __Automatic Lawn
Sprinkler
System
__Fireplace(s) & __Fireplace(s) &
p;
Chimney Chimney
(Woodburning) (Mock)
__Gas Lines __Gas Fixtures
(Nat./LP)
Garage:__Attached __Not Attached __Carport
Garage Door Opener(s) __Electronic __Control(s)
):
Water Heater: __Gas __Electric
Water
Water Supply:__City __Well__MUD __Co-op

Roof Type: ________________________________ Age: _____(approx)

Are you (Seller) aware of any of the above items that are not in
working condition, that have known defects, or that are in need of
repair? __ Yes __ No __ Unknown.

If yes, then describe. (Attach additional sheets if necessary):

________________________________________________________________

2. Are you (Seller) aware of any known defect/malfunctions in any
of the following?

Write Yes (Y) if you are aware, write No (N) if you are not aware.

__Interior Walls __Ceilings __Floors
__Exterior Walls __Doors __Windows
__Roof __Foundation/ __Basement
Slab(s)
__Walls/Fences __Driveways __Sidewalks
__Plumbing/Sewers/ __Electrical __Lighting
Septics Systems Fixtures

__ Other Structural Components (Describe): ____________________

________________________________________________________________

If the answer to any of the above is yes, explain. (Attach
additional sheets if necessary):_____________________________

________________________________________________________________

3. Are you (Seller) aware of any of the following conditions?

Write Yes (Y) if you are aware, write No (N) if you are not aware.

__Active Termites __Previous Structural
(includes or Roof Repair
wood-destroying insects)
__Termite or Wood Rot __Hazardous or Toxic Waste
Needing Repair
__Previous Termite Damage __Asbestos Components
__Previous Termite __Urea formaldehyde
Treatment Insulation
__Previous Flooding __Radon Gas
__Improper Drainage __Lead Based Paint
__Water Penetration __Aluminum Wiring
__Located in 100-Year __Previous Fires
Floodplain
__Present Flood Insurance __Unplatted Easements
Coverage
__Landfill, Settling, Soil __Subsurface
Movement, Fault Lines Structure or Pits

If the answer to any of the above is yes, explain. (Attach
additional sheets if necessary):_____________________________

________________________________________________________________

4. Are you (Seller) aware of any item, equipment, or system in or
on the property that is in need of repair? __ Yes (if you are
aware) __ No (if you are not aware). If yes, explain (attach
additional sheets as necessary)._________________________________

5. Are you (Seller) aware of any of the following?

Write Yes (Y) if you aware, write No (N) if you are not aware.

__ Room additions, structural
modifications, or other alterations or
repairs made withoutnecessary permits or
not in compliance with building codes in
effect at that time.
__ Homeowners'Association or maintenance
fees or assessments.
__ Any "common area"(facilities such as
pools, tennis courts, walkways, or other
areas) co-owned in undivided
interestwith others.
__ Any notices of violations of deed
restrictions of governmental ordinances
affecting the condition or use of the
Property.
__ Any lawsuits directly or indirectly
affecting the Property.
__ Any condition on the Property which
materially affects the physical health
or safety of an individual.

If the answer to any of the above is yes, explain. (Attach
additional sheets if necessary):_____________________________

________________________________________________________________

__________________ _____________________________________

Date Signature of Seller

The undersigned purchaser hereby acknowledges receipt of the
foregoing notice.

__________________ _____________________________________

Date Signature of Purchaser
(c) A seller or seller's agent shall have no duty to make a
disclosure or release information related to whether a death by
natural causes, suicide, or accident unrelated to the condition of
the property occurred on the property or whether a previous
occupant had, may have had, has, or may have AIDS, HIV related
illnesses, or HIV infection.
(d) The notice shall be completed to the best of seller's
belief and knowledge as of the date the notice is completed and
signed by the seller. If the information required by the notice is
unknown to the seller, the seller shall indicate that fact on the
notice, and by that act is in compliance with this section.
(e) This section does not apply to a transfer:
(1) pursuant to a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgage by a mortgagor or successor in
interest, or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the real property at a sale conducted
pursuant to a power of sale under a deed of trust or a sale pursuant
to a court ordered foreclosure or has acquired the real property by
a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to one or more other co-owners;
(7) made to a spouse or to a person or persons in the
lineal line of consanguinity of one or more of the transferors;
(8) between spouses resulting from a decree of
dissolution of marriage or a decree of legal separation or from a
property settlement agreement incidental to such a decree;
(9) to or from any governmental entity;
(10) transfers of new residences of not more than one
dwelling unit which have not previously been occupied for
residential purposes; or
(11) transfers of real property where the value of any
dwelling does not exceed five percent (5%) of the value of the
property.
(f) The notice shall be delivered by the seller to the
purchaser on or before the effective date of an executory contract
binding the purchaser to purchase the property. If a contract is
entered without the seller providing the notice required by this
section, the purchaser may terminate the contract for any reason
within seven days after receiving the notice.

Added by Acts 1993, 73rd Leg., ch. 356, § 1, eff. Jan. 1, 1994.

§ 5.009. DUTIES OF LIFE TENANT. (a) Subject to
Subsection (b), if the life tenant of a legal life estate is given
the power to sell and reinvest any life tenancy property, the life
tenant is subject, with respect to the sale and investment of the
property, to all of the fiduciary duties of a trustee imposed by the
Texas Trust Code (Subtitle B, Title 9, Property Code) or the common
law of this state.
(b) A life tenant may retain, as life tenancy property, any
real property originally conveyed to the life tenant without being
subject to the fiduciary duties of a trustee; however, the life
tenant is subject to the common law duties of a life tenant.

Acts 1993, 73rd Leg., ch. 846, § 34, eff. Sept. 1, 1993.
Renumbered from V.T.C.A., Property Code § 5.008 by Acts 1995,
74th Leg., ch. 76, § 17.01(42), eff. Sept. 1, 1995.

§ 5.010. NOTICE OF ADDITIONAL TAX LIABILITY. (a) A
person who is the owner of an interest in vacant land and who
contracts for the transfer of that interest shall include in the
contract the following bold-faced notice:
If for the current ad valorem tax year the taxable value of
the land that is the subject of this contract is determined by a
special appraisal method that allows for appraisal of the land at
less than its market value, the person to whom the land is
transferred may not be allowed to qualify the land for that special
appraisal in a subsequent tax year and the land may then be
appraised at its full market value. In addition, the transfer of
the land or a subsequent change in the use of the land may result in
the imposition of an additional tax plus interest as a penalty for
the transfer or the change in the use of the land. The taxable value
of the land and the applicable method of appraisal for the current
tax year is public information and may be obtained from the tax
appraisal district established for the county in which the land is
located.

NOTICE REGARDING POSSIBLE LIABILITY FOR ADDITIONAL TAXES
(b) This section does not apply to a contract for a
transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the land at a sale conducted under a power of
sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the land by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) of only a mineral interest, leasehold interest, or
security interest; or
(7) to or from a governmental entity.
(c) The notice described by Subsection (a) is not required
to be included in a contract for transfer of an interest in land if
every transferee under the contract is:
(1) a person who is a co-owner with an owner described
by Subsection (a) of an undivided interest in the land; or
(2) a spouse or a person in the lineal line of
consanguinity of an owner described by Subsection (a).
(d) The notice described by Subsection (a) is not required
to be given if in a separate paragraph of the contract the contract
expressly provides for the payment of any additional ad valorem
taxes and interest that become due as a penalty because of:
(1) the transfer of the land; or
(2) a subsequent change in the use of the land.
(e) If the owner fails to include in the contract the notice
described by Subsection (a), the person to whom the land is
transferred is entitled to recover from that owner an amount equal
to the amount of any additional taxes and interest that the person
is required to pay as a penalty because of:
(1) the transfer of the land; or
(2) a subsequent change in the use of the land that
occurs before the fifth anniversary of the date of the transfer.

Added by Acts 1997, 75th Leg., ch. 174, § 1, eff. Jan. 1, 1998.

§ 5.011. SELLER'S DISCLOSURE REGARDING POTENTIAL
ANNEXATION. (a) A person who sells an interest in real property
in this state shall give to the purchaser of the property a written
notice that reads substantially similar to the following:

If the property that is the subject of this contract is located
outside the limits of a municipality, the property may now or later
be included in the extraterritorial jurisdiction of a municipality
and may now or later be subject to annexation by the municipality.
Each municipality maintains a map that depicts its boundaries and
extraterritorial jurisdiction. To determine if the property is
located within a municipality's extraterritorial jurisdiction or
is likely to be located within a municipality's extraterritorial
jurisdiction, contact all municipalities located in the general
proximity of the property for further information.

NOTICE REGARDING POSSIBLE ANNEXATION
(b) The seller shall deliver the notice to the purchaser
before the date the executory contract binds the purchaser to
purchase the property. The notice may be given separately, as part
of the contract during negotiations, or as part of any other notice
the seller delivers to the purchaser.
(c) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the land at a sale conducted under a power of
sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the land by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an
undivided interest in the real property;
(7) to a spouse or a person in the lineal line of
consanguinity of the seller;
(8) to or from a governmental entity;
(9) of only a mineral interest, leasehold interest, or
security interest; or
(10) of real property that is located wholly within a
municipality's corporate boundaries.
(d) If the notice is delivered as provided by this section,
the seller has no duty to provide additional information regarding
the possible annexation of the property by a municipality.
(e) If an executory contract is entered into without the
seller providing the notice required by this section, the purchaser
may terminate the contract for any reason within the earlier of:
(1) seven days after the date the purchaser receives
the notice; or
(2) the date the transfer occurs.

Added by Acts 1999, 76th Leg., ch. 529, § 1, eff. Jan. 1, 2000.

§ 5.012. NOTICE OF OBLIGATIONS RELATED TO MEMBERSHIP IN
PROPERTY OWNERS' ASSOCIATION. (a) A seller of residential real
property that is subject to membership in a property owners'
association and that comprises not more than one dwelling unit
located in this state shall give to the purchaser of the property a
written notice that reads substantially similar to the following:
As a purchaser of property in the residential community in
which this property is located, you are obligated to be a member of
a property owners' association. Restrictive covenants governing
the use and occupancy of the property and a dedicatory instrument
governing the establishment, maintenance, and operation of this
residential community have been or will be recorded in the Real
Property Records of the county in which the property is located.
Copies of the restrictive covenants and dedicatory instrument may
be obtained from the county clerk.

NOTICE OF MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION CONCERNING THE
PROPERTY AT (street address) (name of residential community)
You are obligated to pay assessments to the property owners'
association. The amount of the assessments is subject to change.
Your failure to pay the assessments could result in a lien on and
the foreclosure of your property.Date: ____________________ _______________________________
Signature of Purchaser

(b) The seller shall deliver the notice to the purchaser
before the date the executory contract binds the purchaser to
purchase the property. The notice may be given separately, as part
of the contract during negotiations, or as part of any other notice
the seller delivers to the purchaser. If the notice is included as
part of the executory contract or another notice, the title of the
notice prescribed by this section, the references to the street
address and date in the notice, and the purchaser's signature on the
notice may be omitted.
(c) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the land at a sale conducted under a power of
sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the land by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an
undivided interest in the real property;
(7) to a spouse or a person in the lineal line of
consanguinity of the seller;
(8) to or from a governmental entity;
(9) of only a mineral interest, leasehold interest, or
security interest; or
(10) of a real property interest in a condominium.
(d) If an executory contract is entered into without the
seller providing the notice required by this section, the purchaser
may terminate the contract for any reason within the earlier of:
(1) seven days after the date the purchaser receives
the notice; or
(2) the date the transfer occurs as provided by the
executory contract.
(e) The purchaser's right to terminate the executory
contract under Subsection (d) is the purchaser's exclusive remedy
for the seller's failure to provide the notice required by this
section.

Added by Acts 1999, 76th Leg., ch. 1420, § 1, eff. Jan. 1, 2000.

§ 5.013. SELLER'S DISCLOSURE OF LOCATION OF CONDITIONS
UNDER SURFACE OF UNIMPROVED REAL PROPERTY. (a) A seller of
unimproved real property to be used for residential purposes shall
provide to the purchaser of the property a written notice
disclosing the location of a transportation pipeline, including a
pipeline for the transportation of natural gas, natural gas
liquids, synthetic gas, liquefied petroleum gas, petroleum or a
petroleum product, or a hazardous substance.
(b) The notice must state the information to the best of the
seller's belief and knowledge as of the date the notice is completed
and signed by the seller. If the information required to be
disclosed is not known to the seller, the seller shall indicate that
fact in the notice.
(c) The notice must be delivered by the seller on or before
the effective date of an executory contract binding the purchaser
to purchase the property. If a contract is entered without the
seller providing the notice as required by this section, the
purchaser may terminate the contract for any reason not later than
the seventh day after the effective date of the contract.
(d) This section applies to any seller of unimproved real
property, including a seller who is the developer of the property
and who sells the property to others for resale.
(e) In this section, "hazardous substance" and "hazardous
waste" have the meanings assigned by Section 361.003, Health and
Safety Code.
(f) A seller is not required to give the notice if:
(1) the seller is obligated under an earnest money
contract to furnish a title insurance commitment to the buyer prior
to closing; and
(2) the buyer is entitled to terminate the contract if
the buyer's objections to title as permitted by the contract are not
cured by the seller prior to closing.

Added by Acts 1997, 75th Leg., ch. 1239, § 1, eff. Sept. 1, 1997.
Renumbered from V.T.C.A., Property Code § 5.010 by Acts 2001,
77th Leg., ch. 1420, § 21.001(95), eff. Sept. 1, 2001.

SUBCHAPTER B. FORM AND CONSTRUCTION OF INSTRUMENTS

§ 5.021. INSTRUMENT OF CONVEYANCE. A conveyance of an
estate of inheritance, a freehold, or an estate for more than one
year, in land and tenements, must be in writing and must be
subscribed and delivered by the conveyor or by the conveyor's agent
authorized in writing.

Acts 1983, 68th Leg., p. 3481, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.022. FORM. (a) The following form or a form that
is the same in substance conveys a fee simple estate in real
property with a covenant of general warranty:

"The State of Texas,

"County of ____________________.
"Know all men by these presents, That I, __________________,
of the __________________ (give name of city, town, or county), in
the state aforesaid, for and in consideration of __________________
dollars, to me in hand paid by __________________, have granted,
sold, and conveyed, and by these presents do grant, sell, and convey
unto the said __________________, of the __________________ (give
name of city, town, or county), in the state of __________________,
all that certain __________________ (describe the premises). To
have and to hold the above described premises, together with all and
singular the rights and appurtenances thereto in any wise
belonging, unto the said __________________, his heirs or assigns
forever. And I do hereby bind myself, my heirs, executors, and
administrators to warrant and forever defend all and singular the
said premises unto the said __________________, his heirs, and
assigns, against every person whomsoever, lawfully claiming or to
claim the same, or any part thereof.
"Witness my hand, this __________________ day of
__________________, A.D. 19___.
"Signed and delivered in the presence of
____________________"
(b) A covenant of warranty is not required in a conveyance.
(c) The parties to a conveyance may insert any clause or use
any form not in contravention of law.

Acts 1983, 68th Leg., p. 3481, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.023. IMPLIED COVENANTS. (a) Unless the conveyance
expressly provides otherwise, the use of "grant" or "convey" in a
conveyance of an estate of inheritance or fee simple implies only
that the grantor and the grantor's heirs covenant to the grantee and
the grantee's heirs or assigns:
(1) that prior to the execution of the conveyance the
grantor has not conveyed the estate or any interest in the estate to
a person other than the grantee; and
(2) that at the time of the execution of the conveyance
the estate is free from encumbrances.
(b) An implied covenant under this section may be the basis
for a lawsuit as if it had been expressed in the conveyance.

Acts 1983, 68th Leg., p. 3482, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.024. ENCUMBRANCES. "Encumbrance" includes a tax,
an assessment, and a lien on real property.

Acts 1983, 68th Leg., p. 3482, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.025. WOOD SHINGLE ROOF. To the extent that a deed
restriction applicable to a structure on residential property
requires the use of a wood shingle roof, the restriction is void.

Acts 1983, 68th Leg., p. 3482, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.026. DISCRIMINATORY PROVISIONS. (a) If a
restriction that affects real property, or a provision in a deed
that conveys real property or an interest in real property, whether
express or incorporated by reference, prohibits the use by or the
sale, lease, or transfer to a person because of race, color,
religion, or national origin, the provision or restriction is void.
(b) A court shall dismiss a suit or part of a suit to enforce
a provision that is void under this section.

Acts 1983, 68th Leg., p. 3483, ch. 576, § 1, eff. Jan. 1, 1984.

SUBCHAPTER C. FUTURE ESTATES

§ 5.041. FUTURE ESTATES. A person may make an inter
vivos conveyance of an estate of freehold or inheritance that
commences in the future, in the same manner as by a will.

Acts 1983, 68th Leg., p. 3483, ch. 576, § 1, eff. Jan. 1, 1984.

§ 5.042. ABOLITION OF COMMON-LAW RULES. (a) The
common-law rules known as the rule in Shelley's case, the rule
forbidding a remainder to the grantor's heirs, the doctrine of
worthier title, and the doctrine or rule prohibiting an existing
lien upon part of a homestead from extending to another part of the
homestead not charged with the debts secured by the existing lien
upon part of the homestead do not apply in this state.
(b) A deed, will, or other conveyance of property in this
state that limits an interest in the property to a particular person
or to a class such as the heirs, heirs of the body, issue, or next of
kin of the conveyor or of a person to whom a particular interest in
the same property is limited is effective according to the intent of
the conveyor.
(c) Status as an heir or next of kin of a conveyor or the
failure of a conveyor to describe a person in a conveyance other
than as a member of a class does not affect a person's right to take
or share in an interest as a conveyee.
(d) Subject to the intention of a conveyor, which controls
unless limited by law, the membership of a class described in this
section and the participation of a member in a property interest
conveyed to the class are determined under this state's laws of
descent and distribution.
(e) This section does not apply to a conveyance taking
effect before January 1, 1964.

Acts 1983, 68th Leg., p. 3483, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1999, 76th Leg., ch. 1510, § 5, eff. Sept. 1,
1999.

§ 5.043. REFORMATION OF INTERESTS VIOLATING RULE AGAINST
PERPETUITIES. (a) Within the limits of the rule against
perpetuities, a court shall reform or construe an interest in real
or personal property that violates the rule to effect the
ascertainable general intent of the creator of the interest. A
court shall liberally construe and apply this provision to validate
an interest to the fullest extent consistent with the creator's
intent.
(b) The court may reform or construe an interest under
Subsection (a) of this section according to the doctrine of cy pres
by giving effect to the general intent and specific directives of
the creator within the limits of the rule against perpetuities.
(c) If an instrument that violates the rule against
perpetuities may be reformed or construed under this section, a
court shall enforce the provisions of the instrument that do not
violate the rule and shall reform or construe under this section a
provision that violates or might violate the rule.
(d) This section applies to legal and equitable interests,
including noncharitable gifts and trusts, conveyed by an inter
vivos instrument or a will that takes effect on or after September
1, 1969, and this section applies to an appointment made on or after
that date regardless of when the power was created.

Acts 1983, 68th Leg., p. 3484, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1991, 72nd Leg., ch. 895, § 16, eff. Sept. 1,
1991.

SUBCHAPTER D. EXECUTORY CONTRACT FOR CONVEYANCE

§ 5.061. DEFINITION. In this subchapter, "default"
means the failure to:
(1) make a timely payment; or
(2) comply with a term of an executory contract.

Added by Acts 1995, 74th Leg., ch. 994, § 2, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.065 and amended by
Act 2001, 77th Leg., ch. 693, § 1, Sept. 1, 2001.

§ 5.062. APPLICABILITY. (a) This subchapter applies
only to a transaction involving an executory contract for
conveyance of real property used or to be used as the purchaser's
residence or as the residence of a person related to the purchaser
within the second degree by consanguinity or affinity, as
determined under Chapter 573, Government Code. For purposes of
this subchapter, a lot measuring one acre or less is presumed to be
residential property.
(b) This subchapter does not apply to a transaction
involving the sale of state land or a sale of land by the Veterans'
Land Board under an executory contract.
(c) This subchapter does not apply to an executory contract
that provides for the delivery of a deed from the seller to the
purchaser within 180 days of the date of the final execution of the
executory contract.
(d) Section 5.066 and Sections 5.068-5.080 do not apply to a
transaction involving an executory contract for conveyance if the
purchaser of the property:
(1) is related to the seller of the property within the
second degree by consanguinity or affinity, as determined under
Chapter 573, Government Code; and
(2) has waived the applicability of those sections in
a written agreement.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.091 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.063. NOTICE. (a) Notice under Section 5.064 must
be in writing and must be delivered by registered or certified mail,
return receipt requested. The notice must be conspicuous and
printed in 14-point boldface type or 14-point uppercase typewritten
letters, and must include on a separate page the statement:

YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR
PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY
(date) THE SELLER HAS THE RIGHT TO TAKE POSSESSION OF YOUR PROPERTY.

NOTICE
(b) The notice must also:
(1) identify and explain the remedy the seller intends
to enforce;
(2) if the purchaser has failed to make a timely
payment, specify:
(A) the delinquent amount, itemized into
principal and interest;
(B) any additional charges claimed, such as late
charges or attorney's fees; and
(C) the period to which the delinquency and
additional charges relate; and
(3) if the purchaser has failed to comply with a term
of the contract, identify the term violated and the action required
to cure the violation.
(c) Notice by mail is given when it is mailed to the
purchaser's residence or place of business. The affidavit of a
person knowledgeable of the facts to the effect that notice was
given is prima facie evidence of notice in an action involving a
subsequent bona fide purchaser for value if the purchaser is not in
possession of the real property and if the stated time to avoid the
forfeiture has expired. A bona fide subsequent purchaser for value
who relies upon the affidavit under this subsection shall take
title free and clear of the contract.

Acts 1983, 68th Leg., p. 3485, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1993, 73rd Leg., ch. 444, § 1, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 994, § 2, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.062 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 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; and
(3) Section 5.066 does not apply.

Acts 1983, 68th Leg., p. 3484, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1995, 74th Leg., ch. 994, § 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 5.061 and
amended by Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 959, § 1, eff. Sept.
1, 2003.

§ 5.065. RIGHT TO CURE DEFAULT. Notwithstanding an
agreement to the contrary, a purchaser in default under an
executory contract for the conveyance of real property may avoid
the enforcement of a remedy described by Section 5.064 by complying
with the terms of the contract on or before the 30th day after the
date notice is given under that section.

Acts 1983, 68th Leg., p. 3485, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1995, 74th Leg., ch. 994, § 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 5.063 and
amended by Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 959, § 2, eff. Sept.
1, 2003.

§ 5.066. EQUITY PROTECTION; SALE OF PROPERTY. (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, 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.
(b) The seller shall notify a purchaser of a default under
the contract and allow the purchaser at least 60 days after the date
notice is given to cure the default. The notice must be provided as
prescribed by Section 5.063 except that the notice must substitute
the following statement:

YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR
PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY
(date) A TRUSTEE DESIGNATED BY THE SELLER HAS THE RIGHT TO SELL YOUR
PROPERTY AT A PUBLIC AUCTION.

NOTICE
(c) The trustee or a substitute trustee designated by the
seller must post, file, and serve a notice of sale and the county
clerk shall record and maintain the notice of sale as prescribed by
Section 51.002. A notice of sale is not valid unless it is given
after the period to cure has expired.
(d) The trustee or a substitute trustee designated by the
seller must conduct the sale as prescribed by Section 51.002. The
seller must:
(1) convey to a purchaser at a sale conducted under
this section fee simple title to the real property; and
(2) warrant that the property is free from any
encumbrance.
(e) The remaining balance of the amount due under the
executory contract is the debt for purposes of a sale under this
section. If the proceeds of the sale exceed the debt amount, the
seller shall disburse the excess funds to the purchaser under the
executory contract. If the proceeds of the sale are insufficient to
extinguish the debt amount, the seller's right to recover the
resulting deficiency is subject to Sections 51.003, 51.004, and
51.005 unless a provision of the executory contract releases the
purchaser under the contract from liability.
(f) The affidavit of a person knowledgeable of the facts
that states that the notice was given and the sale was conducted as
provided by this section is prima facie evidence of those facts. A
purchaser for value who relies on an affidavit under this
subsection acquires title to the property free and clear of the
executory contract.
(g) If a purchaser defaults before the purchaser has paid 40
percent of the amount due or the equivalent of 48 monthly payments
under the executory contract, the seller may enforce the remedy of
rescission or of forfeiture and acceleration of the indebtedness if
the seller complies with the notice requirements of Sections 5.063
and 5.064.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.101 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.067. PLACEMENT OF LIEN FOR UTILITY
SERVICE. Notwithstanding any terms of a contract to the contrary,
the placement of a lien for the reasonable value of improvements to
residential real estate for purposes of providing utility service
to the property shall not constitute a default under the terms of an
executory contract for the purchase of the real property.

Added by Acts 1991, 72nd Leg., ch. 743, § 1, eff. Sept. 1, 1991.
Amended by Acts 1995, 74th Leg., ch. 994, § 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 5.064 and
amended by Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1,
2001.

§ 5.068. FOREIGN LANGUAGE REQUIREMENT. If the
negotiations that precede the execution of an executory contract
are conducted primarily in a language other than English, the
seller shall provide a copy in that language of all written
documents relating to the transaction, including the contract,
disclosure notices, annual accounting statements, and a notice of
default required by this subchapter.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.093 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.069. SELLER'S DISCLOSURE OF PROPERTY
CONDITION. (a) Before an executory contract is signed by the
purchaser, the seller shall provide the purchaser with:
(1) a survey, which was completed within the past
year, or plat of a current survey of the real property;
(2) a legible copy of any document that describes an
encumbrance or other claim, including a restrictive covenant or
easement, that affects title to the real property; and
(3) a written notice, which must be attached to the
contract, informing the purchaser of the condition of the property
that must, at a minimum, be executed by the seller and purchaser and
read substantially similar to the following:

WARNING

IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT BE ABLE
TO LIVE ON THE PROPERTY.

SELLER'S DISCLOSURE NOTICE

CONCERNING THE PROPERTY AT (street address or legal description and
city)

THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS ABOUT THE PROPERTY
YOU ARE CONSIDERING PURCHASING.

CHECK ALL THE ITEMS THAT ARE APPLICABLE OR TRUE:

_____ The property is in a recorded subdivision.

_____ The property has water service that provides potable water.

_____ The property has sewer service.

_____ The property has been approved by the appropriate municipal,
county, or state agency for installation of a septic system.

_____ The property has electric service.

_____ The property is not in a floodplain.

_____ The roads to the boundaries of the property are paved and
maintained by:
_____ the seller;
_____ the owner of the property on which the road exists;
_____ the municipality;
_____ the county; or
_____ the state.

_____ No individual or entity other than the seller:
(1) owns the property;
(2) has a claim of ownership to the property; or
(3) has an interest in the property.

_____ No individual or entity has a lien filed against the
property.

_____ There are no restrictive covenants, easements, or other
title exceptions or encumbrances that prohibit construction of a
house on the property.

NOTICE: SELLER ADVISES PURCHASER TO:
(1) OBTAIN A TITLE ABSTRACT OR TITLE COMMITMENT COVERING
THE PROPERTY AND HAVE THE ABSTRACT OR COMMITMENT REVIEWED
BY AN ATTORNEY BEFORE SIGNING A CONTRACT OF THIS TYPE; AND
(2) PURCHASE AN OWNER'S POLICY OF TITLE INSURANCE
COVERING THE PROPERTY. _____________________________ ______________________________
(Date) (Signature of Seller)
_____________________________ ______________________________
(Date) (Signature of Purchaser)

(b) If the property is not located in a recorded
subdivision, the seller shall provide the purchaser with a separate
disclosure form stating that utilities may not be available to the
property until the subdivision is recorded as required by law.
(c) If the seller advertises property for sale under an
executory contract, the advertisement must disclose information
regarding the availability of water, sewer, and electric service.
(d) The seller's failure to provide information required by
this section:
(1) is a false, misleading, or deceptive act or
practice within the meaning of Section 17.46, Business & Commerce
Code, and is actionable in a public or private suit brought under
Subchapter E, Chapter 17, Business & Commerce Code; and
(2) entitles the purchaser to cancel and rescind the
executory contract and receive a full refund of all payments made to
the seller.
(e) Subsection (d) does not limit the purchaser's remedy
against the seller for other false, misleading, or deceptive acts
or practices actionable in a suit brought under Subchapter E,
Chapter 17, Business & Commerce Code.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.094 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.070. SELLER'S DISCLOSURE OF TAX PAYMENTS AND
INSURANCE COVERAGE. (a) Before an executory contract is signed
by the purchaser, the seller shall provide the purchaser with:
(1) a tax certificate from the collector for each
taxing unit that collects taxes due on the property as provided by
Section 31.08, Tax Code; and
(2) a legible copy of any insurance policy, binder, or
other evidence relating to the property that indicates:
(A) the name of the insurer and the insured;
(B) a description of the property insured; and
(C) the amount for which the property is insured.
(b) The seller's failure to provide information required by
this section:
(1) is a false, misleading, or deceptive act or
practice within the meaning of Section 17.46, Business & Commerce
Code, and is actionable in a public or private suit brought under
Subchapter E, Chapter 17, Business & Commerce Code; and
(2) entitles the purchaser to cancel and rescind the
executory contract and receive a full refund of all payments made to
the seller.
(c) Subsection (b) does not limit the purchaser's remedy
against the seller for other false, misleading, or deceptive acts
or practices actionable in a suit brought under Subchapter E,
Chapter 17, Business & Commerce Code.

Added by Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.071. SELLER'S DISCLOSURE OF FINANCING
TERMS. Before an executory contract is signed by the purchaser,
the seller shall provide to the purchaser a written statement that
specifies:
(1) the purchase price of the property;
(2) the interest rate charged under the contract;
(3) the dollar amount, or an estimate of the dollar
amount if the interest rate is variable, of the interest charged for
the term of the contract;
(4) the total amount of principal and interest to be
paid under the contract;
(5) the late charge, if any, that may be assessed under
the contract; and
(6) the fact that the seller may not charge a
prepayment penalty or any similar fee if the purchaser elects to pay
the entire amount due under the contract before the scheduled
payment date under the contract.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.095 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.072. ORAL AGREEMENTS PROHIBITED. (a) An executory
contract is not enforceable unless the contract is in writing and
signed by the party to be bound or by that party's authorized
representative.
(b) The rights and obligations of the parties to a contract
are determined solely from the written contract, and any prior oral
agreements between the parties are superseded by and merged into
the contract.
(c) An executory contract may not be varied by any oral
agreements or discussions that occur before or contemporaneously
with the execution of the contract.
(d) The seller shall include in a separate document or in a
provision of the contract a statement printed in 14-point boldfaced
type or 14-point uppercase typewritten letters that reads
substantially similar to the following:
THIS EXECUTORY CONTRACT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE SELLER AND PURCHASER AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

____________________________ ____________________________

(Date) (Signature of Seller)

____________________________ ____________________________

(Date) (Signature of Purchaser)
(e) The seller's failure to provide the notice required by
this section:
(1) is a false, misleading, or deceptive act or
practice within the meaning of Section 17.46, Business & Commerce
Code, and is actionable in a public or private suit brought under
Subchapter E, Chapter 17, Business & Commerce Code; and
(2) entitles the purchaser to cancel and rescind the
executory contract and receive a full refund of all payments made to
the seller.
(f) Subsection (e) does not limit the purchaser's remedy
against the seller for other false, misleading, or deceptive acts
or practices actionable in a suit brought under Subchapter E,
Chapter 17, Business & Commerce Code.

Added by Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.073. CONTRACT TERMS PROHIBITED. A seller may not
include as a term of the executory contract a provision that:
(1) imposes an additional late-payment fee that
exceeds the lesser of:
(A) eight percent of the monthly payment under
the contract; or
(B) the actual administrative cost of processing
the late payment;
(2) prohibits the purchaser from pledging the
purchaser's interest in the property as security to obtain a loan to
place improvements, including utility improvements or fire
protection improvements, on the property; or
(3) imposes a prepayment penalty or any similar fee if
the purchaser elects to pay the entire amount due under the contract
before the scheduled payment date under the contract.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.096 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.074. PURCHASER'S RIGHT TO CANCEL CONTRACT WITHOUT
CAUSE. (a) In addition to other rights or remedies provided by
law, the purchaser may cancel and rescind an executory contract for
any reason by sending by telegram or certified or registered mail,
return receipt requested, or by delivering in person a signed,
written notice of cancellation to the seller not later than the 14th
day after the date of the contract.
(b) If the purchaser cancels the contract as provided by
Subsection (a), the seller shall, not later than the 10th day after
the date the seller receives the purchaser's notice of
cancellation:
(1) return to the purchaser the executed contract and
any property exchanged or payments made by the purchaser under the
contract; and
(2) cancel any security interest arising out of the
contract.
(c) The seller shall include in immediate proximity to the
space reserved in the executory contract for the purchaser's
signature a statement printed in 14-point boldface type or 14-point
uppercase typewritten letters that reads substantially similar to
the following:
YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY
TIME DURING THE NEXT TWO WEEKS. THE DEADLINE FOR
CANCELING THE CONTRACT IS (date). THE ATTACHED NOTICE
OF CANCELLATION EXPLAINS THIS RIGHT.
(d) The seller shall provide a notice of cancellation form
to the purchaser at the time the purchaser signs the executory
contract that is printed in 14-point boldface type or 14-point
uppercase typewritten letters and that reads substantially similar
to the following:
(date of contract)

NOTICE OF CANCELLATION
YOU MAY CANCEL THE EXECUTORY CONTRACT FOR ANY REASON WITHOUT
ANY PENALTY OR OBLIGATION BY (date).
(1) YOU MUST SEND BY TELEGRAM OR CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED, OR DELIVER IN PERSON A
SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER
WRITTEN NOTICE TO (Name of Seller) AT (Seller's Address) BY (date).
(2) THE SELLER SHALL, NOT LATER THAN THE 10TH DAY AFTER
THE DATE THE SELLER RECEIVES YOUR CANCELLATION NOTICE:
(A) RETURN THE EXECUTED CONTRACT AND ANY PROPERTY
EXCHANGED OR PAYMENTS MADE BY YOU UNDER THE CONTRACT; AND
(B) CANCEL ANY SECURITY INTEREST ARISING OUT OF
THE CONTRACT.

I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF CANCELLATION FORM.

_________________________ _________________________

(Date) (Purchaser's Signature)

I HEREBY CANCEL THIS CONTRACT.

_________________________ _________________________

(Date) (Purchaser's Signature)
(e) The seller may not request the purchaser to sign a
waiver of receipt of the notice of cancellation form required by
this section.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.097 by Acts 2001,
77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.075. PURCHASER'S RIGHT TO PLEDGE INTEREST IN
PROPERTY ON CONTRACTS ENTERED INTO BEFORE SEPTEMBER 1,
2001. (a) On an executory contract entered into before September
1, 2001 , a purchaser may pledge the interest in the property, which
accrues pursuant to Section 5.066, only to obtain a loan for
improving the safety of the property or any improvements on the
property.
(b) Loans that improve the safety of the property and
improvements on the property include loans for:
(1) improving or connecting a residence to water
service;
(2) improving or connecting a residence to a
wastewater system;
(3) building or improving a septic system;
(4) structural improvements in the residence; and
(5) improved fire protection.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.098 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.076. RECORDING REQUIREMENTS. (a) Except as
provided by Subsection (b), the seller shall record the executory
contract, including the attached disclosure statement required by
Section 5.069, as prescribed by Title 3 on or before the 30th day
after the date the contract is executed.
(b) Section 12.002(c) does not apply to an executory
contract filed for record under this section.
(c) If the executory contract is terminated for any reason,
the seller shall record the instrument that terminates the
contract.
(d) The county clerk shall collect the filing fee prescribed
by Section 118.011, Local Government Code.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.099 and amended Acts
2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.077. ANNUAL ACCOUNTING STATEMENT. (a) The seller
shall provide the purchaser with an annual statement in January of
each year for the term of the executory contract. If the seller
mails the statement to the purchaser, the statement must be
postmarked not later than January 31.
(b) The statement must include the following information:
(1) the amount paid under the contract;
(2) the remaining amount owed under the contract;
(3) the number of payments remaining under the
contract;
(4) the amounts paid to taxing authorities on the
purchaser's behalf if collected by the seller;
(5) the amounts paid to insure the property on the
purchaser's behalf if collected by the seller;
(6) if the property has been damaged and the seller has
received insurance proceeds, an accounting of the proceeds applied
to the property; and
(7) if the seller has changed insurance coverage, a
legible copy of the current policy, binder, or other evidence that
satisfies the requirements of Section 5.070(a)(2).
(c) A seller who fails to comply with Subsection (a) is
liable to the purchaser for:
(1) liquidated damages in the amount of $250 a day for
each day after January 31 that the seller fails to provide the
purchaser with the statement; and
(2) reasonable attorney's fees .

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.100 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.078. DISPOSITION OF INSURANCE PROCEEDS. (a) The
named insured under an insurance policy, binder, or other coverage
relating to property subject to an executory contract for the
conveyance of real property shall inform the insurer, not later
than the 10th day after the date the coverage is obtained or the
contract executed, whichever is later, of:
(1) the executory contract for conveyance and the term
of the contract; and
(2) the name and address of the other party to the
contract.
(b) An insurer who disburses proceeds under an insurance
policy, binder, or other coverage relating to property that has
been damaged shall issue the proceeds jointly to the purchaser and
the seller designated in the contract.
(c) If proceeds under an insurance policy, binder, or other
coverage are disbursed, the purchaser and seller shall ensure that
the proceeds are used to repair, remedy, or improve the condition on
the property.
(d) The failure of a seller or purchaser to comply with
Subsection (c) is a false, misleading, or deceptive act or practice
within the meaning of Section 17.46, Business & Commerce Code, and
is actionable in a public or private suit brought under Subchapter
E, Chapter 17, Business & Commerce Code.
(e) Subsection (d) does not limit either party's remedy for
other false, misleading, or deceptive acts or practices actionable
in a suit brought under Subchapter E, Chapter 17, Business &
Commerce Code.

Added by Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.079. TITLE TRANSFER. (a) The seller shall
transfer recorded, legal title of the 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.
(b) A seller who violates Subsection (a) is liable to the
purchaser for:
(1) liquidated damages in the amount of:
(A) $250 a day for each day the seller fails to
transfer the title to the purchaser during the period that begins
the 31st day and ends the 90th day after the date the seller
receives the purchaser's final payment due under the contract; and
(B) $500 a day for each day the seller fails to
transfer title to the purchaser after the 90th day after the date
the seller receives the purchaser's final payment due under the
contract; and
(2) reasonable attorney's fees.
(c) If a person to whom a seller's property interest passes
by will or intestate succession is required to obtain a court order
to clarify the person's status as an heir or to clarify the status
of the seller or the property before the person may convey good and
indefeasible title to the property, the court in which the action is
pending may waive payment of the liquidated damages and attorney's
fees under Subsection (b) if the court finds that the person is
pursuing the action to establish good and indefeasible title with
reasonable diligence.
(d) In this section, "seller" includes a successor,
assignee, personal representative, executor, or administrator of
the seller.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.102 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

§ 5.080. LIABILITY FOR DISCLOSURES. For purposes of
this subchapter, a disclosure required by this subchapter that is
made by a seller's agent is a disclosure made by the seller.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.103 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

SUBCHAPTER F. REQUIREMENTS FOR CONVEYANCES OF MINERAL OR ROYALTY
INTERESTS

§ 5.151. DISCLOSURE IN OFFER TO PURCHASE MINERAL
INTEREST. (a) A person who mails to the owner of a mineral or
royalty interest an offer to purchase only the mineral or royalty
interest, it being understood that for the purpose of this section
the taking of an oil, gas, or mineral lease shall not be deemed a
purchase of a mineral or royalty interest, and encloses an
instrument of conveyance of only the mineral or royalty interest
and a draft or other instrument, as defined in Section 3.104,
Business & Commerce Code, providing for payment for that interest
shall include in the offer a conspicuous statement printed in a type
style that is approximately the same size as 14-point type style or
larger and is in substantially the following form:
BY EXECUTING AND DELIVERING THIS INSTRUMENT YOU ARE
SELLING ALL OR A PORTION OF YOUR MINERAL OR ROYALTY
INTEREST IN (DESCRIPTION OF PROPERTY BEING CONVEYED).
(b) A person who conveys a mineral or royalty interest as
provided by Subsection (a) may bring suit against the purchaser of
the interest if:
(1) the purchaser did not give the notice required by
Subsection (a); and
(2) the person has given 30 days' written notice to the
purchaser that a suit will be filed unless the matter is otherwise
resolved.
(c) A plaintiff who prevails in a suit under Subsection (b)
may recover from the initial purchaser of the mineral or royalty
interest the greater of:
(1) $100; or
(2) an amount up to the difference between the amount
paid by the purchaser for the mineral or royalty interest and the
fair market value of the mineral or royalty interest at the time of
the sale.
(d) The prevailing party in a suit under Subsection (b) may
recover:
(1) court costs; and
(2) reasonable attorney's fees.
(e) A person must bring a suit under Subsection (b) not
later than the second anniversary of the date the person executed
the conveyance.
(f) The remedy provided under this section shall be in
addition to any other remedies existing under law, excluding
rescission or other remedies that would make the conveyance of the
mineral or royalty interest void or of no force and effect.

Added by Acts 1999, 76th Leg., ch. 1200, § 1, eff. Sept. 1, 1999.