Texas Property Code 301.041 – Certain Sales and Rentals Exempted
(a) Sections 301.021, 301.023, 301.024, and 301.025 do not apply to:
(1) the sale or rental of a single-family house sold or rented by the owner if:
(A) the owner does not:
(i) own more than three single-family houses at any one time; or
(ii) own any interest in, nor is there owned or reserved on the person‘s behalf, under any express or voluntary agreement, title to or any right to any part of the proceeds from the sale or rental of more than three single-family houses at any one time; and
(B) the house is sold or rented without:
(i) the use of the sales or rental facilities or services of a broker, agent, or salesperson licensed under Chapter 1101, Occupations Code, or of an employee or agent of a licensed broker, agent, or salesperson, or the facilities or services of any person in the business of selling or renting a dwelling; or
(ii) the publication, posting, or mailing of a notice, statement, or advertisement prohibited by § 301.022; or
(2) the sale or rental of the rooms or units in a dwelling containing living quarters occupied by or intended to be occupied by not more than four families living independently of each other, if the owner maintains and occupies one of the living quarters as the owner’s residence.
(b) The exemption in Subsection (a)(1) applies only to one sale in a 24-month period if the owner was not the most recent resident of the house at the time of the sale.
Terms Used In Texas Property Code 301.041
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) Subsection (a) does not prohibit the use of attorneys, escrow agents, abstractors, title companies, and other professional assistants necessary to transfer title.
(d) For purposes of Subsection (a), a person is in the business of selling or renting a dwelling if:
(1) the person has, within the preceding year, participated as the seller or landlord in three or more transactions involving the sale or rental of a dwelling or any interest in a dwelling;
(2) the person has, within the preceding year, participated in two or more transactions, other than transactions involving the person’s own dwelling, as an agent providing sales or rental facilities or services involving the sale or rental of a dwelling or any interest in a dwelling; or
(3) the person is the owner of a dwelling designed or intended for occupancy by, or that is occupied by, five or more families.