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House Bill 8 |
House Author: Darby et al. |
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Effective: 6-17-11 |
Senate Sponsor: Harris |
House Bill 8 amends the Property Code to establish that a private transfer fee obligation is not binding or enforceable against a subsequent owner or subsequent purchaser of an interest in real property and is void. The bill establishes that for purposes of the bill's provisions, specified types of payments are not considered private transfer fee obligations and places restrictions on the type of community that may benefit from, and the type of organization that may provide a benefit under, certain of those types of payments. The bill provides requirements for notification regarding the continuation of existing private transfer fee obligations, the timely acceptance of fees paid under such obligations, and the disclosure of an existing transfer fee obligation to a potential purchaser of real property that may be subject to such an obligation. The bill establishes that a provision that purports to waive a purchaser's rights under the bill's provisions is void.
House Bill 8 authorizes the attorney general to institute an action for injunctive or declaratory relief to restrain a violation of the bill's provisions and for civil penalties against a payee for a violation of statutory provisions relating to conveyances in general and sets out provisions relating to the assessment of such a penalty. The bill repeals a provision relating to a prohibition against a fee in certain deed restrictions or covenants for future conveyance of residential real property and a related lien.