H.B. No. 311

	AN ACT
	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; [and]
	(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 [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.
	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