SB1612 amends Texas Property Code to clarify trust fund definitions and establish attorney's fees for beneficiaries in certain actions.

SB1612 amends the Texas Property Code to redefine trust funds related to construction contracts. It specifies that funds reserved under Section 53.101 are trust funds, except for those designated for residential improvements on single-family houses, duplexes, triplexes, or quadruplexes. Additionally, it mandates that courts award costs and reasonable attorney's fees to beneficiaries who prevail in actions against trustees. The changes apply to construction contracts entered into and actions commenced after the act's effective date of September 1, 2025.

SB1612 amends Texas Property Code to clarify trust fund definitions and establish attorney's fees for beneficiaries in certain actions.

SB1612 amends the Texas Property Code to redefine trust funds related to construction contracts. It specifies that funds reserved under Section 53.101 are trust funds, except for those designated for residential improvements on single-family houses, duplexes, triplexes, or quadruplexes. Additionally, it mandates that courts award costs and reasonable attorney's fees to beneficiaries who prevail in actions against trustees. The changes apply to construction contracts entered into and actions commenced after the act's effective date of September 1, 2025.