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Rep.Bailes, Ernest

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REPRESENTATIVE BAILES PASSES BILL TO PROTECT PRIVATE PROPERTY RIGHTS  print page

by: Rep. Bailes, Ernest
05/24/2019

AUSTIN, TX - State Representative Ernest Bailes is sending a bill to Governor Abbott's desk that will address an issue facing many landowner's in Texas who have been the target of a scam which sells their mineral rights without knowledge of doing so.

"This has been a hard-fought bill and a win for private property rights," Bailes said.

HB 3838 amends the Texas Property Code which contains requirements for mandatory disclosures in offers to purchase mineral interests. Mineral and royalty owners in Texas, a high percentage of those being primarily elderly and vulnerable individuals, have been the target of a scam in which they've been deceived into selling their mineral interests rather than leasing them. Bad actors do this under the guise that the document being signed will bring a royalty owner more income from the lease, but instead the document completely separates the royalty owner from their mineral interests.

In summary, this bill expands the provision in the Texas Property Code for mandatory disclosures to apply to leases, not just purchases of royalties and mineral interests; makes requirements of the disclosure to be explicit; and finally expands the remedies to be able to rescind the sale and recovery of damages, including royalties and bonuses paid to the purchaser or any successor, court costs, and attorney's fees.

Ultimately, the bill to be signed by Governor Abbott is the culmination of multiple stakeholder meetings which concluded with agreed-upon language by all parties involved. Rep. Bailes hopes to continue working through the interim to strengthen private property rights in the state of Texas.

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Capitol Address:
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Room E2.812

P.O. Box 2910

Austin, TX 78768

(512) 463-0570

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PO Box 1116

Shepherd, TX 77371

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10501 Hwy 150

Suite B

Shepherd, TX 77371

(936) 628-6687