(a) Before an executory contract is signed by the purchaser, the seller shall provide the purchaser with:
(1) a tax certificate from the collector for each taxing unit that collects taxes due on the property as provided by § 31.08, Tax Code; and
(2) a legible copy of any insurance policy, binder, or other evidence relating to the property that indicates:
(A) the name of the insurer and the insured;
(B) a description of the property insured; and
(C) the amount for which the property is insured.
(b) The seller’s failure to provide information required by this section:
(1) is a false, misleading, or deceptive act or practice within the meaning of § 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code; and
(2) entitles the purchaser to cancel and rescind the executory contract and receive a full refund of all payments made to the seller.

Terms Used In Texas Property Code 5.070

  • Contract: A legal written agreement that becomes binding when signed.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Property: means real and personal property. See Texas Government Code 311.005
  • Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005

(c) Subsection (b) does not limit the purchaser’s remedy against the seller for other false, misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business & Commerce Code.
(d) If the executory contract is recorded, the seller is not required to continue insuring the property.

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