What is the Statute of Limitations in Texas for Selling a House With Undisclosed Defects?
Full Question:
Answer:
The statute of limitations in Texas for breach of contract is four years and begins to run from the date of entering into the contract. It is also four years for fraud, but the running of the statute may be tolled to run when the fraud is discovered or reasonably should have been discovered. A statute of limitations is a law which sets the maximum period which one can wait before filing a lawsuit, depending on the type of case or claim. The periods vary by state and by type of claim. Federal statutes set the limitations for federal lawsuits. If the lawsuit or claim is not filed before the statutory deadline, the right to sue or make a claim is lost forever. In some instances, a statute of limitations can be extended ("tolled") based on delay in discovery of the injury or fraud. The contractual methods for dealing with statutes of limitations restrictions include a new promise to pay or an acknowledgment of a debt from which such promise may be inferred, or contractual limitation periods and waivers of the defense.
The following are Texas statutes:
§ 16.004 CIV. PRAC. & REM. CIV. PRAC. & REM. Four-Year Limitations Period
(a) A person must bring suit on the following actions not later than
four years after the day the cause of action accrues:
(1) specific performance of a contract for the conveyance of real
property;
(2) penalty or damages on the penal clause of a bond to convey real
property;
(3) debt;
(4) fraud; or
(5) breach of fiduciary duty.
(b) A person must bring suit on the bond of an executor,
administrator, or guardian not later than four years after the day of the
death, resignation, removal, or discharge of the executor,
administrator, or guardian.
(c) A person must bring suit against his partner for a settlement of
partnership accounts, and must bring an action on an open or stated
account, or on a mutual and current account concerning the trade of
merchandise between merchants or their agents or factors, not later than
four years after the day that the cause of action accrues. For purposes
of this subsection, the cause of action accrues on the day that the
dealings in which the parties were interested together cease.
§ 16.051 CIV. PRAC. & REM. CIV. PRAC. & REM. Residual Limitations Period
Every action for which there is no express limitations period, except
an action for the recovery of real property, must be brought not later
than four years after the day the cause of action accrues.
§ 16.063 CIV. PRAC. & REM. CIV. PRAC. & REM. Temporary Absence From
State
The absence from this state of a person against whom a cause of action
may be maintained suspends the running of the applicable statute of
limitations for the period of the person's absence.
§ 5.069 PROP. Seller's Disclosure of Property Condition
(a) Before an executory contract is signed by the purchaser, the seller
shall provide the purchaser with:
(1) a survey, which was completed within the past year, or plat of a
current survey of the real property;
(2) a legible copy of any document that describes an encumbrance or
other claim, including a restrictive covenant or easement, that affects
title to the real property; and
(3) a written notice, which must be attached to the contract, informing
the purchaser of the condition of the property that must, at a minimum,
be executed by the seller and purchaser and read substantially similar to
the following:
WARNING
IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT BE ABLE TO
LIVE ON THE PROPERTY.
SELLER'S DISCLOSURE NOTICE
CONCERNING THE PROPERTY AT (street address or legal description and city)
THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS ABOUT THE PROPERTY
YOU ARE CONSIDERING PURCHASING.
CHECK ALL THE ITEMS THAT ARE APPLICABLE OR TRUE:
_____ The property is in a recorded subdivision.
_____ The property has water service that provides potable water.
_____ The property has sewer service.
_____ The property has been approved by the appropriate municipal,
county, or state agency for installation of a septic system.
_____ The property has electric service.
_____ The property is not in a floodplain.
_____ The roads to the boundaries of the property are paved and
maintained by:
_____ _____ the seller;
_____ _____ the owner of the property on which the road exists;
_____ _____ the municipality;
_____ _____ the county; or
_____ _____ the state.
_____ No individual or entity other than the seller:
_____ (1) owns the property;
_____ (2) has a claim of ownership to the property; or
_____ (3) has an interest in the property.
_____ No individual or entity has a lien filed against the property.
_____ There are no restrictive covenants, easements, or other
title exceptions or encumbrances that prohibit construction of a house on the
property.
NOTICE: SELLER ADVISES PURCHASER TO:
(1) OBTAIN A TITLE ABSTRACT OR TITLE COMMITMENT COVERING THE PROPERTY
AND HAVE THE ABSTRACT OR COMMITMENT REVIEWED BY AN ATTORNEY BEFORE
SIGNING A CONTRACT OF THIS TYPE; AND
(2) PURCHASE AN OWNER'S POLICY OF TITLE INSURANCE COVERING THE
PROPERTY.
________________________________ _________________________________
(Date) (Signature of Seller)
________________________________ _________________________________
(Date) (Signature of Purchaser)
(b) If the property is not located in a recorded subdivision, the
seller shall provide the purchaser with a separate disclosure form
stating that utilities may not be available to the property until the
subdivision is recorded as required by law.
(c) If the seller advertises property for sale under an executory
contract, the advertisement must disclose information regarding the
availability of water, sewer, and electric service.
(d) The seller's failure to provide information required by this section:
(1) is a false, misleading, or deceptive act or practice within the
meaning of Section 17.46, Business & Commerce Code,
and is actionable in a public or private suit brought under
Subchapter E, Chapter 17, Business & Commerce Code; and
(2) entitles the purchaser to cancel and rescind the executory contract
and receive a full refund of all payments made to the seller.
(e) Subsection (d) does not limit the purchaser's remedy against the
seller for other false, misleading, or deceptive acts or practices
actionable in a suit brought under Subchapter E, Chapter 17, Business
& Commerce Code.