Texas HB3288 amends the Property Code to address misapplication of trust funds by trustees in construction contracts.
Texas HB3288 amends Section 162.031 of the Property Code by adding a new subsection that specifies a trustee who retains or diverts trust funds due to a dispute or alleged default in a construction contract has misapplied the trust funds. This change applies only to contracts entered into after the effective date of the Act, which is September 1, 2025.
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