Texas Property Code

§ 5.085 — FEE SIMPLE TITLE REQUIRED; MAINTENANCE OF FEE SIMPLE TITLE

PR § 5.085Title 2. CONVEYANCES · Ch. 5. CONVEYANCES · Art. D. EXECUTORY CONTRACT FOR CONVEYANCE

Statute text

(a)A potential seller may not execute an executory contract with a potential purchaser if the seller does not own the property in fee simple free from any liens or other encumbrances.

(b)Except as provided by this subsection, a seller, or the seller's heirs or assigns, must maintain fee simple title free from any liens or other encumbrances to property covered by an executory contract for the entire duration of the contract. This subsection does not apply to a lien or encumbrance placed on the property that is:

(1)placed on the property because of the conduct of the purchaser;

(2)agreed to by the purchaser as a condition of a loan obtained to place improvements on the property, including utility or fire protection improvements; or

(3)placed on the property by the seller prior to the execution of the contract in exchange for a loan used only to purchase the property if:

(A)the seller, not later than the third day before the date the contract is executed, notifies the purchaser in a separate written disclosure:

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Legislative history

Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 6, eff. September 1, 2005.