Texas Occupations Code 1201.151 – Refunds
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(a) Except as otherwise provided by this section, a retailer must refund a consumer’s deposit not later than the 15th day after the date that a written request for the refund is received from the consumer.
(b) The deposit may be retained only if:
(1) the consumer specially orders from the manufacturer a manufactured home that is not in the retailer’s inventory;
(2) the home conforms to the specifications of the special order and any representations made to the consumer;
(3) the consumer fails or refuses to accept delivery and installation of the home by the retailer; and
(4) the consumer was given conspicuous written notice of the requirements for retaining the deposit.
Terms Used In Texas Occupations Code 1201.151
- Appraisal: A determination of property value.
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- 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.
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The retailer may not retain more than five percent of the estimated cash price of the specially ordered home and must refund any amount that exceeds five percent.
(d) This section does not apply to:
(1) a deposit held in escrow in a real estate transaction; or
(2) money stated to be a down payment in an executed retail sales contract.
(e) A deposit becomes a down payment upon execution of a sales purchase contract. Thereafter, if the consumer exercises the consumer’s three-day right of rescission in accordance with § 1201.1521, the retailer shall, not later than the 15th day after the date of the rescission, refund to the consumer all money and other consideration received from the consumer, with only the allowable deduction for real property appraisal and title work expenses in accordance with § 1201.1511.
(f) Retention of real property appraisal and title work expenses authorized by Subsection (e) is not allowed if the consumer exercises the right of rescission in accordance with 12 C.F.R. § 1026.23.