Tex.
Prop. Code Section 5.073
Contract Terms, Certain Waivers Prohibited
(a)
A seller may not include as a term of the executory contract a provision that:(1)
imposes an additional late-payment fee that exceeds the lesser of:(A)
eight percent of the monthly payment under the contract; or(B)
the actual administrative cost of processing the late payment;(2)
prohibits the purchaser from pledging the purchaser’s interest in the property as security to obtain a loan to place improvements, including utility improvements or fire protection improvements, on the property;(3)
imposes a prepayment penalty or any similar fee if the purchaser elects to pay the entire amount due under the contract before the scheduled payment date under the contract;(4)
forfeits an option fee or other option payment paid under the contract for a late payment; or(5)
increases the purchase price, imposes a fee or charge of any type, or otherwise penalizes a purchaser leasing property with an option to buy the property for requesting repairs or exercising any other right under Chapter 92 (Residential Tenancies).(b)
A provision of the executory contract that purports to waive a right or exempt a party from a liability or duty under this subchapter is void.
Source:
Section 5.073 — Contract Terms, Certain Waivers Prohibited, https://statutes.capitol.texas.gov/Docs/PR/htm/PR.5.htm#5.073 (accessed May 26, 2025).
