H.B. No. 4063 introduces a new section, Section 12.020, to the Texas Property Code, which establishes procedures for filing and releasing a unilateral memorandum of contract concerning residential property. The bill defines key terms such as "residential property" and "unilateral memorandum of contract," and outlines the requirements for individuals filing these memoranda, including the necessity to provide their mailing address and a certificate of mailing to the county clerk. It also mandates that the filer notify the property owner through registered or certified mail. The legislation further details the rights of property owners to contest the memorandum by filing an affidavit, which serves as a release of record for any claimed rights, provided certain conditions are met.

Additionally, the bill specifies that if a unilateral memorandum does not meet the outlined requirements, it will not provide notice of any asserted rights concerning the property and will not create a duty of inquiry for potential purchasers or lenders. Rights asserted in a non-compliant memorandum will not be enforceable against purchasers or lenders, allowing for the transfer of property free from any interests claimed in the memorandum. The bill limits remedies for enforcing rights under the memorandum to monetary damages, aiming to streamline property transactions and clarify the legal implications of unilateral memoranda in real estate dealings. The provisions will take effect on September 1, 2025.

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