1. (a) The funds or property constituting the escrow or trust deposit may be released from escrow only in accordance with this section.

2. (b) If the purchaser cancels the purchase contract as provided by the contract, the funds shall be paid to:

   1. (1) the purchaser; or
   2. (2) the developer if the purchaser's funds have been refunded previously by the developer.
3. (c) If the purchaser defaults in the performance of obligations under the terms of the purchase contract, the funds shall be paid to the developer.
4. (d) If the developer defaults in the performance of obligations under the purchase contract, the funds shall be paid to the purchaser.
5. (e) If the funds of the purchaser have not been disbursed previously as provided by Subsections (a)-(d), the funds may be disbursed to the developer by the escrow or trust agent if acceptable evidence of completion of construction is provided.

6. (f) If there is a dispute relating to the funds in the escrow or trust account, the agent shall maintain the funds in the account until:

   1. (1) the agent receives written directions agreed to and signed by all parties; or
   2. (2) a civil action relating to the disputed funds is filed.
7. (g) If a civil action is filed under Subsection (f)(2), the escrow or trust account agent shall deposit the funds with the court in which the action is filed.

Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.062 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.

Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.