Sec. 59.011. LENDER LIABILITY FOR CONSTRUCTION. (a) For purposes of Chapter 27, Property Code, and Title 16, Property Code, a federally insured financial institution regulated under this code is not a builder.
(b) A lender regulated by this code that forecloses on or otherwise acquires a home through the foreclosure process or other legal means when the loan is in default is not liable to a subsequent purchaser for any construction defects of which the lender had no knowledge that were created prior to the acquisition of the home by the lender.
(c) A builder hired by a lender to complete the construction of a foreclosed home is not liable for any construction defects of which the builder had no knowledge that existed prior to the acquisition of the home by the lender, but the builder is subject to Chapter 27, Property Code, and Title 16, Property Code, for work performed for the lender subsequent to the acquisition of the home by the lender.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 5.01, eff. September 1, 2005.
Structure Texas Statutes
Title 3 - Financial Institutions and Businesses
Chapter 59 - Miscellaneous Provisions
Subchapter A. General Provisions
Section 59.002. Slander or Libel of Bank
Section 59.003. Authority of Notary Public
Section 59.004. Succession of Trust Powers
Section 59.005. Agency Activities
Section 59.006. Discovery of Customer Records
Section 59.007. Attachment, Injunction, Execution, or Garnishment
Section 59.008. Claims Against Customers of Financial Institutions
Section 59.009. Compliance Review Committee
Section 59.010. Confidentiality of Administrative Subpoena
Section 59.011. Lender Liability for Construction
Section 59.012. Loans for Developments That Use Harvested Rainwater