Bill Text: TX HB4126 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the regulation of future listing right purchase contracts; imposing a fee; requiring an occupational registration.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-29 - Left pending in committee [HB4126 Detail]

Download: Texas-2023-HB4126-Introduced.html

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88R11850 MAW-F
By: Raney H.B. No. 4126

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of future listing right purchase
contracts; imposing a fee; requiring an occupational registration.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1101, Occupations Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. FUTURE LISTING RIGHT PURCHASE CONTRACT
Sec. 1101.851. DEFINITIONS. In this subchapter:
(1) "Future listing right purchase contract" means a
contract entered into between a purchasing company and an owner of
real estate that obligates the owner to enter into a real estate
listing agreement with a particular person for the future sale of
that real estate.
(2) "Purchasing company" means a person who purchases
or offers to purchase a future listing right for real estate.
Sec. 1101.852. REGISTRATION REQUIRED. (a) A person may not
act as a purchasing company unless the person is registered with the
commission. A future listing right purchase contract is not
enforceable if the purchasing company is not registered at the time
the contract is executed.
(b) The commission by rule shall establish eligibility
requirements for registration.
(c) An applicant for registration must submit an
application on a form prescribed by the commission and pay a $7,500
application fee.
(d) A registration is valid for two years.
(e) A person may renew an unexpired registration by paying
to the commission a renewal fee of $5,000.
Sec. 1101.853. SURETY BOND. The commission may require a
registration holder to maintain a surety bond payable to the
commission in an amount prescribed by commission rule, not to
exceed $50,000, for the benefit of a party who suffers damages
caused by the failure of the registration holder to fulfill
obligations under this subchapter.
Sec. 1101.854. PROHIBITED PRACTICES. A registration holder
may not:
(1) intentionally advertise materially false
information regarding the registration holder's products or
services; or
(2) contract for the right to establish the sales
price for real estate subject to a future listing right purchase
contract.
Sec. 1101.855. FUTURE LISTING RIGHT PURCHASE CONTRACT;
FORM. (a) The term of a future listing right purchase contract may
not exceed 30 years.
(b) A future listing right purchase contract must:
(1) include a provision authorizing:
(A) the real estate owner to cancel the contract
without penalty or further obligation not later than the fifth
business day after the date of funding by providing notice to the
purchasing company and returning the full amount of any disbursed
funds; and
(B) a person who inherits the real estate on the
death of the owner to cancel the contract not later than the 90th
day after the date of the owner's death by providing notice to the
purchasing company and returning the full amount of any disbursed
funds;
(2) state that the purchasing company has no right to
establish the sales price for the real estate subject to the
contract or to compel the owner to sell the real estate;
(3) state the purchase price and all charges and fees
to be paid under the contract; and
(4) require that a copy of the executed contract be
provided to the owner not later than the seventh business day after
the date the owner signs it.
(c) A future listing right purchase contract may be recorded
on the property to which it relates in the same manner as an
easement or mortgage.
(d) The commission shall adopt a form for a future listing
right purchase contract that may be used by a registration holder.
Sec. 1101.856. ASSIGNABILITY. A future listing right
purchase contract is assignable by the purchasing company.
Sec. 1101.857. APPLICABILITY OF OTHER LAW. A future listing
right purchase contract is not subject to state law governing loans
or investment contracts.
Sec. 1101.858. ENFORCEMENT. If a court determines that a
purchasing company has wilfully violated this subchapter by
deception in regard to entering into a future listing right
purchase contract, that contract is unenforceable.
SECTION 2. This Act takes effect September 1, 2023.