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A BILL TO BE ENTITLED
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AN ACT
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relating to foreclosure sales of residential real property occupied |
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by a tenant. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 24.005(b), Property Code, is amended to |
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read as follows: |
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(b) If the occupant is a tenant at will or by sufferance, the |
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landlord must give the tenant at least three days' written notice to |
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vacate before the landlord files a forcible detainer suit unless |
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the parties have contracted for a shorter or longer notice period in |
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a written lease or agreement. If a building is purchased at a tax |
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foreclosure sale or a trustee's foreclosure sale under a lien |
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superior to the tenant's lease and the tenant timely pays rent and |
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is not otherwise in default under the tenant's lease after |
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foreclosure, the purchaser must give a residential tenant of the |
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building at least 90 [30] days' written notice to vacate if the |
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purchaser chooses not to continue the lease. The tenant is |
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considered to timely pay the rent under this subsection if, during |
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the month of the foreclosure sale, the tenant pays the rent for that |
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month to the landlord before receiving any notice that a |
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foreclosure sale is scheduled during the month or pays the rent for |
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that month to the foreclosing lienholder or the purchaser at |
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foreclosure not later than the fifth day after the date of receipt |
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of a written notice of the name and address of the purchaser that |
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requests payment and, if applicable, pays to the purchaser each |
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rental payment that becomes due under the existing lease after the |
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month of the foreclosure sale and before the date on which the |
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tenant is required to vacate. Before a foreclosure sale, a |
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foreclosing lienholder may give written notice to a tenant stating |
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that a foreclosure notice has been given to the landlord or owner of |
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the property and specifying the date of the foreclosure. |
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SECTION 2. The changes in law made by this Act apply only to |
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residential real property purchased at a foreclosure sale on or |
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after the effective date of this Act. Residential real property |
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purchased at a foreclosure sale before the effective date of this |
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Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |