Texas § FI.59.011 - LENDER LIABILITY FOR CONSTRUCTION
Full text of Texas The Texas Constitution § FI.59.011 — LENDER LIABILITY FOR CONSTRUCTION, with citation guidance and answers to common questions.
§ FI.59.011. LENDER LIABILITY FOR CONSTRUCTION
LENDER LIABILITY FOR CONSTRUCTION. (a) For purposes of Chapter 27 , 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, 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. Amended by: Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595 ), Sec. 9.002, eff. September 1, 2023.
Frequently Asked Questions About Texas § FI.59.011
What does The Texas Constitution § FI.59.011 cover?
Section FI.59.011 ("LENDER LIABILITY FOR CONSTRUCTION") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § FI.59.011?
A common citation format is "The Texas Constitution § FI.59.011" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § FI.59.011 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.