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Bill

SB 1407

Relating to the withdrawal of certain deposits placed in escrow in connection with the purchase or reservation of a condominium unit.

89th Legislature (2025) Introduced by Tan Parker

SB 1407 clarifies when condominium buyers can withdraw escrow deposits, balancing buyer protections with developer funding interests in Texas real estate transactions.

Referred to Business & Commerce
#escrow(s5353) #housing--general(i0405) #insurance--property&casualty(i0442) #propertyinterests--realproperty(i0595)
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WeVote Research Nonpartisan
Bill Summary · SB 1407

Legislative bill overview

SB 1407 addresses the conditions and procedures under which buyers can withdraw deposit funds held in escrow for condominium purchases or reservations. The bill modifies existing Texas law governing escrow arrangements in real estate transactions involving condominiums, specifically clarifying withdrawal rights and requirements.

Why is this important

Escrow deposits protect both buyers and sellers in real estate transactions, but unclear withdrawal rules can trap buyers' money or create disputes. This bill affects thousands of Texans purchasing condominiums annually by establishing clearer rights to recover funds under specific circumstances, which could reduce litigation and provide consumer protection.

Potential points of contention

  • Timing and conditions for withdrawal: Whether buyers can withdraw deposits if financing falls through, inspections reveal problems, or other contingencies aren't met remains subject to debate
  • Builder/developer protections: Developers may resist broad withdrawal rights that could destabilize their project funding, while consumer advocates want stronger buyer protections
  • Interaction with existing contracts: How the law addresses deposits already placed under older escrow agreements and whether it applies retroactively could create complications

Compiled from official sources — confirm details with the bill’s official record.

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