Texas Property Code

§ 221.061 — ESCROW OR TRUST ACCOUNT REQUIRED

PR § 221.061Title 12. MISCELLANEOUS SHARED REAL PROPERTY INTERESTS · Ch. 221. TEXAS TIMESHARE ACT · Art. G. ESCROW DEPOSITS

Statute text

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(a)A developer or escrow agent of a timeshare plan shall deposit in an escrow or trust account in a federally insured depository 100 percent of all funds received during the purchaser's cancellation period.

(b)An escrow agent owes the purchaser a fiduciary duty.

(c)The escrow agent and the developer shall execute an agreement that includes a statement providing that:

(1)funds may be disbursed to the developer from the escrow or trust account by the agent only:

(A)after the purchaser's cancellation period has expired; and

(B)as provided by the purchase contract, subject to this subchapter; and

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Legislative history

Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.