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TITLE 7BANKING AND SECURITIES
PART 8JOINT FINANCIAL REGULATORY AGENCIES
CHAPTER 152REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY
RULE §152.1Definitions

Any reference to Section 50 in this interpretation refers to Article XVI, Texas Constitution, Section 50. Words and terms have these meanings when used in this chapter, unless the context indicates otherwise:

  (1) Contract--A contract for work and material, that complies with the Texas Constitution and the Texas Property Code, used to:

    (A) construct new improvements;

    (B) repair or renovate existing improvements; or

    (C) both subparagraphs (A) and (B) of this paragraph.

  (2) Existing improvements--A pre-existing addition to a homestead that is physically attached to the homestead.

  (3) New improvements--An addition physically attached to a homestead:

    (A) that does not exist on the homestead prior to the commencement of the use of work and material to physically attach the new improvements to the homestead under Section 50(a)(5); and

    (B) the construction of which will not involve:

      (i) work on existing improvements

      (ii) the use of material on existing improvements; or

      (iii) physically attaching material to existing improvements.

  (4) Material--Material used in constructing new improvements or repairing or renovating existing improvements. Material alone is not improvements. Material used to construct new improvements becomes a part of the new improvements once physically attached to the new improvements. Likewise, material used to repair or renovate existing improvements becomes a part of the existing improvements once physically attached to the existing improvements.

  (5) Owner--A person who has the right to possess, use, and convey, individually or with the joinder of another person, all or part of the homestead.

  (6) Physically attach--To permanently attach, affix, add to, or fasten onto.

  (7) Repair or Renovate--Work and material used to:

    (A) replace material physically attached to existing improvements whether or not the new material is similar to or the same as the material being replaced (examples include replacing flooring, roofing, built-in appliances, siding, windows, or other material that is attached to existing improvements);

    (B) physically attach material to existing improvements where there is no previously attached material being replaced that is the same as or similar to the material being attached (examples include attaching to existing improvements a new room, a built-in cabinet, or a second story); and

    (C) mend, remedy or upgrade all or a portion of existing improvements without adding or replacing material to the existing improvements (examples include restoring wood flooring or woodwork of an existing improvement where the work does not include physically attaching material to the existing improvements, and removing flooring to expose flooring underneath).

  (8) Title company--A title insurance company or an agent of a title insurance company.


Source Note: The provisions of this §152.1 adopted to be effective July 7, 2005, 30 TexReg 3863

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