TITLE: Relating to information provided to a purchaser of a manufactured home regarding the ability to elect to treat the home as real property or personal property.

SUMMARY: Relating to information provided to a purchaser of a manufactured home regarding the ability to elect to treat the home as real property or personal property.

FULL TEXT:
AN ACT relating to information provided to a purchaser of a manufactured home regarding the ability to elect to treat the home as real property or personal property. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1201.162, Occupations Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows: (a) Before the completion of a credit application or more than one day before entering into any agreement for a sale or exchange that will not be financed, the retailer must provide to the consumer a written disclosure in the form promulgated by the board. The disclosure shall be in at least 12-point type and must:(1) address:(A) matters of concern relating to costs and obligations that may be associated with home ownership;(B) [] matters to be considered in making financing decisions;(C) [] related costs that may arise when purchasing a manufactured home;(D) a purchaser's ability to elect to treat a manufactured home as real property or personal property; [] and (E) any [such] other matters as the board may consider [deem] appropriate to promote informed purchase, financing, and related decisions regarding the acquisition and ownership of a manufactured home;and (2) [. The form shall also] conspicuously disclose the consumer's right of rescission. (d) The disclosure required under Subsection (a)(1)(D) must explain: (1) the conditions required under Section 1201.2055(a) for an owner to elect to treat a manufactured home as real property; (2) the effects of electing to treat a home as real property; (3) that the election must be made on the application for the issuance of a statement of ownership; and (4) that the election may be made to convert the home from personal property to real property or from real property to personal property. SECTION 2. Section 1201.162, Occupations Code, as amended by this Act, applies only to a disclosure that is provided to a consumer on or after the effective date of this Act. A disclosure provided to a consumer before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.