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

HB 4876 changes rules for condo purchase deposits held in escrow. It allows developers (declarants) to withdraw escrow funds for actual construction costs once building begins, provided they secure a bond or insurance policy. This bond must cover the full deposit amount and be payable directly to the buyer if the developer fails to return funds per the purchase agreement. The bill ensures buyers are protected by requiring the bond to match the deposit value, while restricting funds to construction costs only. It applies directly to condo buyers and developers in Texas.