Texas HB4876 regulates the withdrawal of escrow deposits for condominium purchases, requiring surety bonds or insurance for construction cost.
Texas HB4876 amends the Property Code to regulate the withdrawal of escrow deposits for condominium purchases. It mandates that deposits be placed in escrow accounts held by real estate brokers, attorneys, or licensed insurers until delivery to the declarant or refund to the purchaser. If a purchase contract allows using the deposit for construction costs, the declarant can withdraw funds when construction begins, provided they maintain a surety bond or insurance covering the deposit amount.
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