Texas Finance Code 347.455 – Real Property in Credit Transaction
(a) A creditor and consumer may agree to include real property in the cash price of a credit transaction if:
(1) the real property does not exceed 200 acres;
(2) the real property is purchased by the consumer simultaneously or in conjunction with the purchase of the manufactured home, regardless of whether the real property and manufactured home are sold by the same person; and
(3) the creditor and consumer agree that the manufactured home is to be attached to the real property within a reasonable time.
(b) If the real property is included in the cash price of a credit transaction, the creditor may:
(1) charge a fee that is ordinarily associated with a real property transaction and is not prohibited by law, including a fee that is associated with a real property transaction and excluded from a finance charge under this chapter by the Consumer Credit Protection Act (15 U.S.C. § 1601 et seq.) and Regulation Z (12 C.F.R. part 1026) adopted under that Act; and
(2) elect to treat the manufactured home as if it were residential real property for all purposes in connection with the credit transaction by conspicuously disclosing that election to the consumer.
Terms Used In Texas Finance Code 347.455
- Consumer: means a person to whom credit is extended in a credit transaction. See Texas Finance Code 347.002
- Credit transaction: means :
(A) any sale, loan, or other transaction involving a retail purchase of a manufactured home and under which a person in a written agreement, including a credit sales contract or loan instrument, grants to another person a purchase money lien on the manufactured home to secure an extension of credit that is:
(i) subject to a finance charge; or
(ii) payable in more than four installments, not including a down payment; and
(B) a lease or bailment described by § 347. See Texas Finance Code 347.002 - Creditor: means a:
(A) person who extends credit or arranges for the extension of credit in a credit transaction; or
(B) retailer or broker, as defined by § 1201. See Texas Finance Code 347.002 - Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Manufactured home: has the meaning assigned by § 1201. See Texas Finance Code 347.002
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(c) On an election under Subsection (b)(2):
(1) the credit transaction is considered to be a residential real property loan for all purposes; and
(2) this chapter, other than the definitions assigned by this chapter, does not apply to the credit transaction.