Changes Afoot: Real Estate Issues in the Texas 78th Legislative Session

Every two years the Texas legislature convenes for six months to deal with the issues of the previous biennium. Every session presents a host of bills affecting property rights and obligations, and this session is no exception. The session runs from January until late May. Bills must go through the committee process and then be voted on by both the House and the Senate, and finally signed into law by the Governor.

The following is a list and brief explanation of bills currently filed that could have a significant impact on real property interests.
 

HOUSE BILL 299 – Landlord's Duty To Mitigate		This bill proposes that Property Code Section 91.006 be amended to limit a landlord's duty to mitigate to "making reasonable efforts" to mitigate. It also proposes to allow leases with an original term in excess of five years to exempt a landlord from the duty to mitigate. (Rep. Nixon)
HOUSE BILL 208 – Mechanic's Liens		This bill proposes to allow persons that furnish materials for or perform labor under a written contract in connection with the demolition of a structure on real property to take a lien on the property. (Rep. Puente)
HOUSE BILL 427 – Leased Property In A Flood Zone		This bill would require a landlord to disclose whether a dwelling lies within a flood zone before the lease is ratified. The bill goes on to propose that actual damages and attorney's fees be recoverable if a landlord fails to comply with the disclosure requirement. (Rep. Christian)
HOUSE BILL 388 – Forcible Entry And Detainer		This bill would amend the Property Code to require that a forcible entry and detainer suit be heard not later than ten days after service. It also proposes to insert a requirement into Property Code § 24.0061(d)(1) that the writ of possession be executed "as soon as reasonably possible." (Rep. Pitts)
SENATE BILL 79 – Adverse Possession		This bill proposes to allow for a suit to recover property from one claiming adverse possession to be brought at any time, so long as the person bringing the action holds title to the real property and has continuously paid the ad valorem taxes since obtaining title. (Sen. Zaffirini)

One other important issue that is likely to be addressed by the Texas Legislature is the Economic Development sales tax, otherwise known as the "4A/4B" tax issue. This tax allows municipalities to raise their sales tax by one-half of a percent in order to pay for any number of items related to promoting economic development within the municipality. Currently a number of cities are using the funds raised from these taxes to offer cash incentives for businesses that relocate within their boundaries. There is a very strong move to close this loophole and disallow such payments to businesses that move intra-state.

To track these bills and issues as they move through the process and to find future versions and analysis, please visit the official site of the Texas House of Representatives (http://www.house.state.tx.us).
  

For further information on this topic, please contact Matthew Marchant at matthew.marchant@strasburger.com or Beth Tiggelaar at beth.tiggelaar@strasburger.com.

     
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