Texas Property Code

§ 5.073 — CONTRACT TERMS, CERTAIN WAIVERS PROHIBITED

PR § 5.073Title 2. CONVEYANCES · Ch. 5. CONVEYANCES · Art. D. EXECUTORY CONTRACT FOR CONVEYANCE

Statute text

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(a)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;

(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;

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Legislative history

Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 4, eff. September 1, 2005.