Texas Property Code - Section 5.073. Contract Terms, Certain Waivers Prohibited
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Texas Laws > Property Code > Texas Property Code - Section 5.073. Contract Terms, Certain Waivers Prohibited
Section: 5.066 5.067 5.068 5.069 5.070 5.071 5.072 5.073 5.074 5.075 5.076 5.077 5.078 5.079 5.080
§ 5.073. CONTRACT TERMS, CERTAIN WAIVERS PROHIBITED. (a)
A seller may not include as a term of the executory contract a
(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;
(4) forfeits an option fee or other option payment
paid under the contract for a late payment; or
(5) increases the purchase price, imposes a fee or
charge of any type, or otherwise penalizes a purchaser leasing
property with an option to buy the property for requesting repairs
or exercising any other right under Chapter 92.
(b) A provision of the executory contract that purports to
waive a right or exempt a party from a liability or duty under this
subchapter is void.
Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 5.096 and amended by
Acts 2001, 77th Leg., ch. 693, § 1, eff. Sept. 1, 2001. Amended
by Acts 2005, 79th Leg., ch. 978, § 4, eff. Sept. 1, 2005.
Last modified: August 11, 2007