Texas SB1407 amends the Property Code to allow declarants to withdraw escrow deposits for construction costs if a surety bond or insurance is.

Texas SB1407 modifies the Property Code to allow declarants to withdraw escrow deposits for construction costs when certain conditions are met. If a contract specifies that the deposit may be used for construction and the declarant secures a surety bond or insurance, the declarant can withdraw the funds once construction begins. The funds must be used solely for actual building and construction costs of the project. The bond or insurance must be issued by a licensed insurer in Texas, in an amount sufficient to cover the deposit.

Texas SB1407 amends the Property Code to allow declarants to withdraw escrow deposits for construction costs if a surety bond or insurance is.

Texas SB1407 modifies the Property Code to allow declarants to withdraw escrow deposits for construction costs when certain conditions are met. If a contract specifies that the deposit may be used for construction and the declarant secures a surety bond or insurance, the declarant can withdraw the funds once construction begins. The funds must be used solely for actual building and construction costs of the project. The bond or insurance must be issued by a licensed insurer in Texas, in an amount sufficient to cover the deposit.