73R6234 LJD-F
          By Eckels, Carona                                      H.B. No. 156
          Substitute the following for H.B. No. 156:
          By Corte                                           C.S.H.B. No. 156
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the adoption of the Uniform Condominium Act.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 7, Property Code, is amended by adding
    1-5  Chapter 82 to read as follows:
    1-6                 CHAPTER 82.  UNIFORM CONDOMINIUM ACT
    1-7                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-8        Sec. 82.001.  SHORT TITLE.  This chapter may be cited as the
    1-9  Uniform Condominium Act.
   1-10        Sec. 82.002.  APPLICABILITY.  (a)  This chapter applies to
   1-11  all commercial, industrial, residential, and other types of
   1-12  condominiums in this state for which the declaration is recorded on
   1-13  or after January 1, 1994.  A condominium for which the declaration
   1-14  was recorded before January 1, 1994, may be governed exclusively
   1-15  under this chapter if either:
   1-16              (1)  the owners of units vote to amend the declaration,
   1-17  in accordance with the amendment process authorized by the
   1-18  declaration, to have this chapter apply and that amendment is filed
   1-19  for record in the condominium records in each county in which the
   1-20  condominium is located; or
   1-21              (2)  a declaration or amendment of declaration was
   1-22  recorded before January 1, 1994, and the declaration or amendment
   1-23  states that this chapter will apply in its entirety on January 1,
   1-24  1994.
    2-1        (b)  An amendment to a declaration under Subsection (a)(1)
    2-2  that implements a vote of the unit owners to be governed by this
    2-3  chapter may not affect the rights of a declarant or impose duties
    2-4  on a declarant that are greater than or in addition to the
    2-5  declarant's duties immediately before the date of the vote or
    2-6  amendment.
    2-7        (c)  This section and the following sections apply to a
    2-8  condominium in this state for which the declaration was recorded
    2-9  before January 1, 1994:  Sections 82.005, 82.006, 82.007, 82.053,
   2-10  82.054, 82.102(a)(1)-(7) and (12)-(22), 82.111, 82.113, 82.114,
   2-11  82.116, 82.157, and 82.161.  The definitions prescribed by Section
   2-12  82.003 apply to a condominium in this state for which the
   2-13  declaration was recorded before January 1, 1994, to the extent the
   2-14  definitions do not conflict with the declaration.  The sections
   2-15  listed in this subsection apply only with respect to events and
   2-16  circumstances occurring on or after January 1, 1994, and do not
   2-17  invalidate existing provisions of the declaration, bylaws, or plats
   2-18  or plans of a condominium for which the declaration was recorded
   2-19  before January 1, 1994.
   2-20        (d)  Chapter 81 does not apply to a condominium for which the
   2-21  declaration was recorded on or after January 1, 1994, and does not
   2-22  invalidate any amendment to the declaration, bylaws, or plats and
   2-23  plans of any condominium for which the declaration was recorded
   2-24  before January 1, 1994, if the amendment would be permitted by this
   2-25  chapter.  The amendment must be adopted in conformity with the
   2-26  procedures and requirements specified by those instruments and by
   2-27  Chapter 81.  If the amendment grants to a person a right, power, or
    3-1  privilege permitted by this chapter, all correlative obligations,
    3-2  liabilities, and restrictions prescribed by this chapter also apply
    3-3  to that person.
    3-4        Sec. 82.003.  DEFINITIONS.  (a)  In this chapter:
    3-5              (1)  "Affiliate of a declarant" means any person who
    3-6  controls, is controlled by, or is under common control with a
    3-7  declarant.  A person "controls" a declarant if the person is a
    3-8  general partner, officer, director, or employer of the declarant;
    3-9  directly or indirectly or acting in concert with one or more other
   3-10  persons, or through one or more subsidiaries, owns, controls, holds
   3-11  with power to vote or holds proxies representing more than 20
   3-12  percent of the voting interests in the declarant; determines in any
   3-13  manner the election of a majority of the directors of the
   3-14  declarant; or has contributed more than 20 percent of the capital
   3-15  of the declarant.  A person "is controlled by" a declarant if the
   3-16  declarant is a general partner, officer, director, or employer of
   3-17  the person; directly or indirectly or acting in concert with one or
   3-18  more other persons, or through one or more subsidiaries, owns,
   3-19  controls, holds with power to vote, or holds proxies representing
   3-20  more than 20 percent of the voting interests in the person;
   3-21  determines in any manner the election of a majority of the
   3-22  directors of the person; or has contributed more than 20 percent of
   3-23  the capital of the person.
   3-24              (2)  "Allocated interests" means the undivided interest
   3-25  in the common elements, the common expense liability, and votes in
   3-26  the association allocated to each unit.
   3-27              (3)  "Association" means the unit owners' association
    4-1  organized under Section 82.101.
    4-2              (4)  "Board" means the board of directors or the body,
    4-3  regardless of name, designated to act on behalf of the association.
    4-4              (5)  "Common elements" means all portions of a
    4-5  condominium other than the units and includes both general and
    4-6  limited common elements.
    4-7              (6)  "Common expense liability" means the liability for
    4-8  common expenses allocated to each unit.
    4-9              (7)  "Common expenses" means expenditures made by or
   4-10  financial liabilities of the association, together with any
   4-11  allocations to reserves.
   4-12              (8)  "Condominium" means a form of real property with
   4-13  portions of the real property designated for separate ownership or
   4-14  occupancy, and the remainder of the real property designated for
   4-15  common ownership or occupancy solely by the owners of those
   4-16  portions.  Real property is a condominium only if one or more of
   4-17  the common elements are directly owned in undivided interests by
   4-18  the unit owners.  Real property is not a condominium if all of the
   4-19  common elements are owned by a legal entity separate from the unit
   4-20  owners, such as a corporation, even if the separate legal entity is
   4-21  owned by the unit owners.
   4-22              (9)  "Conversion building" means a building that at any
   4-23  time before creation of the condominium was occupied wholly or
   4-24  partially by persons other than purchasers and persons who occupy
   4-25  with the consent of purchasers.
   4-26              (10)  "Declarant" means a person, or group of persons
   4-27  acting in concert, who:
    5-1                    (A)  as part of a common promotional plan, offers
    5-2  to dispose of the person's interest in a unit not previously
    5-3  disposed of; or
    5-4                    (B)  reserves or succeeds to any special
    5-5  declarant right.
    5-6              (11)  "Declaration" means a recorded instrument,
    5-7  however denominated, that creates a condominium, and any recorded
    5-8  amendment to that instrument.
    5-9              (12)  "Development rights" means a right or combination
   5-10  of rights reserved by a declarant in the declaration to:
   5-11                    (A)  add real property to a condominium;
   5-12                    (B)  create units, common elements, or limited
   5-13  common elements within a condominium;
   5-14                    (C)  subdivide units or convert units into common
   5-15  elements; or
   5-16                    (D)  withdraw real property from a condominium.
   5-17              (13)  "Disposition" means a voluntary transfer to a
   5-18  purchaser of any legal or equitable interest in a unit but does not
   5-19  include the transfer or release of a security interest.
   5-20              (14)  "General common elements" means common elements
   5-21  that are not limited common elements.
   5-22              (15)  "Identifying number" means a symbol or address
   5-23  that identifies only one unit in a condominium.
   5-24              (16)  "Leasehold condominium" means a condominium in
   5-25  which all or a portion of the real property is subject to a lease
   5-26  the expiration or termination of which will terminate the
   5-27  condominium or reduce its size.
    6-1              (17)  "Limited common element" means a portion of the
    6-2  common elements allocated by the declaration or by operation of
    6-3  Section 82.052 for the exclusive use of one or more but less than
    6-4  all of the units.
    6-5              (18)  "Plan" means a dimensional drawing that is
    6-6  recordable in the real property records or the condominium plat
    6-7  records and that horizontally and vertically identifies or
    6-8  describes units and common elements that are contained in
    6-9  buildings.
   6-10              (19)  "Plat" means a survey recordable in the real
   6-11  property records or the condominium plat records and containing the
   6-12  information required by Section 82.059.  As used in this chapter,
   6-13  "plat" does not have the same meaning as "plat" in Chapter 212 or
   6-14  232, Local Government Code, or other statutes dealing with
   6-15  municipal or county regulation of property development.
   6-16              (20)  "Purchaser" means a person, other than a
   6-17  declarant, who by means of a voluntary transfer acquires a legal or
   6-18  equitable interest in a unit other than a leasehold interest or as
   6-19  security for an obligation.
   6-20              (21)  "Residential purposes" means recreational or
   6-21  dwelling purposes, or both.
   6-22              (22)  "Special declarant rights" means rights reserved
   6-23  for the benefit of a declarant to:
   6-24                    (A)  complete improvements indicated on plats and
   6-25  plans filed with the declaration;
   6-26                    (B)  exercise any development right;
   6-27                    (C)  make the condominium part of a larger
    7-1  condominium or a planned community;
    7-2                    (D)  maintain sales, management, and leasing
    7-3  offices, signs advertising the condominium, and models;
    7-4                    (E)  use easements through the common elements
    7-5  for the purpose of making improvements within the condominium or
    7-6  within real property that may be added to the condominium; or
    7-7                    (F)  appoint or remove any officer or board
    7-8  member of the association during any period of declarant control.
    7-9              (23)  "Unit" means a physical portion of the
   7-10  condominium designated for separate ownership or occupancy, the
   7-11  boundaries of which are described by the declaration.
   7-12              (24)  "Unit owner" means a declarant or other person
   7-13  who owns a unit, or a lessee of a unit in a leasehold condominium
   7-14  whose lease expires simultaneously with any lease the expiration or
   7-15  termination of which will remove the unit from the condominium, but
   7-16  does not include a person having an interest in a unit solely as
   7-17  security for an obligation.
   7-18        (b)  Unless otherwise provided by the declaration or bylaws,
   7-19  a term defined by Subsection (a) has the same meaning if used in a
   7-20  declaration or bylaws.
   7-21        Sec. 82.004.  VARIATION BY AGREEMENT.  Except as expressly
   7-22  provided by this chapter, provisions of this chapter may not be
   7-23  varied by agreement, and rights conferred by this chapter may not
   7-24  be waived.  A person may not act under a power of attorney or use
   7-25  any other device to evade the limitations or prohibitions of this
   7-26  chapter or the declaration.
   7-27        Sec. 82.005.  SEPARATE TITLES AND TAXATION.  (a)  If there is
    8-1  a unit owner other than a declarant, each unit that has been
    8-2  created, together with its interest in the common elements,
    8-3  constitutes for all purposes a separate parcel of real property.
    8-4        (b)  If there is a unit owner other than a declarant, each
    8-5  unit must be separately taxed and assessed, and no separate tax or
    8-6  assessment may be rendered against common elements for which a
    8-7  declarant has not reserved development rights.  Any portion of the
    8-8  common elements for which a declarant has reserved any development
    8-9  right must be separately taxed and assessed against the declarant,
   8-10  and the declarant alone is liable for payment of those taxes.
   8-11        (c)  If there is no unit owner other than a declarant, the
   8-12  real property constituting the condominium may be taxed and
   8-13  assessed in any manner provided by law.
   8-14        (d)  The laws relating to homestead exemptions from property
   8-15  taxes apply to condominium units, which are entitled to homestead
   8-16  exemptions in those cases in which the owner of a single family
   8-17  dwelling would qualify.
   8-18        Sec. 82.006.  APPLICABILITY OF LOCAL ORDINANCES, REGULATIONS,
   8-19  AND BUILDING CODES.  A zoning, subdivision, building code, or other
   8-20  real property use law, ordinance, or regulation may not prohibit
   8-21  the condominium form of ownership or impose any requirement on a
   8-22  condominium that it would not impose on a physically identical
   8-23  development under a different form of ownership.  Otherwise, this
   8-24  chapter does not invalidate or modify any provision of any zoning,
   8-25  subdivision, building code, or other real property use law,
   8-26  ordinance, or regulation.
   8-27        Sec. 82.007.  CONDEMNATION.  (a)  If a unit is acquired by
    9-1  condemnation, or if part of a unit is acquired by condemnation
    9-2  leaving the unit owner with a remnant that may not practically or
    9-3  lawfully be used for any purpose permitted by the declaration, the
    9-4  condemnation award must compensate the unit owner for the unit and
    9-5  its common element interest, whether or not any common element
    9-6  interest is acquired.  On acquisition, unless the decree provides
    9-7  otherwise, the condemned unit's entire allocated interests are
    9-8  automatically reallocated to the remaining units in proportion to
    9-9  the respective allocated interests of those units before the
   9-10  taking, and the association shall promptly prepare, execute, and
   9-11  record an amendment to the declaration reflecting the
   9-12  reallocations.  A remnant of a unit remaining after part of a unit
   9-13  is taken under this subsection is a common element.
   9-14        (b)  Except as provided by Subsection (a), if part of a unit
   9-15  is acquired by condemnation, the award must compensate the unit
   9-16  owner for the reduction in value of the unit and its common element
   9-17  interest.  On acquisition, the condemned unit's allocated interests
   9-18  are reduced in proportion to the reduction in the size of the unit,
   9-19  or on any other basis specified by the declaration, and the portion
   9-20  of the allocated interests divested from the partially acquired
   9-21  unit are automatically reallocated to that unit and the remaining
   9-22  units in proportion to the respective allocated interests of those
   9-23  units before the taking, with the partially acquired unit
   9-24  participating in the reallocation on the basis of its reduced
   9-25  allocated interests.
   9-26        (c)  If part of the common elements is acquired by
   9-27  condemnation, the award must be paid to the association, as trustee
   10-1  for the unit owners, and to persons holding liens on the condemned
   10-2  property, as their interests may appear.  The association shall
   10-3  divide any portion of the award not used for any restoration or
   10-4  repair of the remaining common elements among the unit owners in
   10-5  proportion to their respective common element interests before the
   10-6  taking, but the portion of the award attributable to the
   10-7  acquisition of a limited common element must be equally divided
   10-8  among the owners of the units to which that limited common element
   10-9  was allocated at the time of acquisition, or in any manner the
  10-10  declaration provides.
  10-11        (d)  The court decree shall be recorded in each county in
  10-12  which any portion of the condominium is located.
  10-13        Sec. 82.008.  VENUE.  Venue for an action to enforce a right
  10-14  or obligation arising under the declaration, bylaws, or rules of
  10-15  the association is in each county in which any part of the
  10-16  condominium is located.
  10-17          (Sections 82.009 to 82.050 reserved for expansion
  10-18         SUBCHAPTER B.  CREATION, ALTERATION, AND TERMINATION
  10-19                            OF CONDOMINIUMS
  10-20        Sec. 82.051.  CREATION OF CONDOMINIUM.  (a)  A condominium
  10-21  may be created under this chapter only by recording a declaration
  10-22  executed in the same manner as a deed by all persons who have an
  10-23  interest in the real property that will be conveyed to unit owners
  10-24  and by every lessor of a lease the expiration or termination of
  10-25  which will terminate the condominium or reduce its size.  The
  10-26  declaration shall be recorded in each county in which any portion
  10-27  of the condominium is located.
   11-1        (b)  A declarant may not convey an interest in a unit until
   11-2  each holder of a mortgage on the unit immediately before conveyance
   11-3  has executed a consent to declaration, and the consent has been
   11-4  recorded, or is recorded concurrently with the conveyance, as part
   11-5  of the declaration or an amendment to the declaration.
   11-6        (c)  If a recorded declaration is not properly executed, that
   11-7  defect may be cured by a subsequent execution conforming to
   11-8  Subsection (a).  After an execution defect is cured by authority of
   11-9  this subsection, the declaration is retroactively effective on the
  11-10  date it was first recorded.
  11-11        (d)  A county clerk shall, without prior approval from any
  11-12  other authority, record declarations and amendments to declarations
  11-13  in the real property records, and a county clerk shall record
  11-14  condominium plats or plans in the real property records or in books
  11-15  maintained for that purpose, as a declarant may request.  The book
  11-16  for the condominium plat records shall be the same size and type as
  11-17  the book for recording subdivision plats.
  11-18        (e)  This chapter does not affect or diminish the rights of
  11-19  municipalities and counties to approve plats of subdivisions and
  11-20  enforce building codes as may be authorized or required by law.
  11-21        Sec. 82.052.  UNIT BOUNDARIES.  Except as otherwise provided
  11-22  by the declaration or plat:
  11-23              (1)  if walls, floors, or ceilings are designated as
  11-24  boundaries of a unit, then all lath, furring, wallboard,
  11-25  plasterboard, plaster, paneling, tiles, wallpaper, paint, finished
  11-26  flooring, and any other materials constituting part of the finished
  11-27  surfaces are a part of the unit, and all other portions of the
   12-1  walls, floors, or ceilings are a part of the common elements;
   12-2              (2)  if any chute, flue, duct, wire, conduit, bearing
   12-3  wall, bearing column, or any other fixture is partially within and
   12-4  partially outside the designated boundaries of a unit, then the
   12-5  portion serving only that unit is a limited common element
   12-6  allocated solely to that unit, and the portion serving more than
   12-7  one unit or the common elements is a part of the general common
   12-8  elements;
   12-9              (3)  subject to Subdivision (2), the spaces, interior
  12-10  partitions, and other fixtures and improvements within the
  12-11  boundaries of a unit are a part of the unit; and
  12-12              (4)  shutters, awnings, window boxes, doorsteps,
  12-13  stoops, porches, balconies, patios, and exterior doors and windows
  12-14  or other fixtures designed to serve a single unit, but located
  12-15  outside the unit's boundaries, are limited common elements
  12-16  allocated exclusively to that unit.
  12-17        Sec. 82.053.  CONSTRUCTION AND VALIDITY OF DECLARATION AND
  12-18  BYLAWS.  (a)  The provisions of the declaration and bylaws are
  12-19  severable.
  12-20        (b)  The rule against perpetuities may not be applied to
  12-21  defeat any provision of the declaration, bylaws, or rules of the
  12-22  association.
  12-23        (c)  If there is a conflict between the provisions of the
  12-24  declaration and the bylaws, the declaration prevails except to the
  12-25  extent the declaration is inconsistent with this chapter.
  12-26        (d)  Title to a unit and common elements is not made
  12-27  unmarketable or otherwise affected by a provision of unrecorded
   13-1  bylaws or by reason of an insubstantial failure of the declaration
   13-2  to comply with this chapter.  Whether a substantial failure impairs
   13-3  marketability is not affected by this chapter.
   13-4        Sec. 82.054.  DESCRIPTION OF UNITS.  A description of a unit
   13-5  is a sufficient legal description of the unit and all rights,
   13-6  obligations, and interests appurtenant to the unit that were
   13-7  created by the declaration or bylaws if the description contains:
   13-8              (1)  the name of the condominium;
   13-9              (2)  the recording data for the declaration, including
  13-10  any amendments, plats, and plans;
  13-11              (3)  the county in which the condominium is located;
  13-12  and
  13-13              (4)  the identifying number of the unit.
  13-14        Sec. 82.055.  CONTENTS OF DECLARATION FOR ALL CONDOMINIUMS.
  13-15  The declaration for a condominium must contain:
  13-16              (1)  the name of the condominium, which must include
  13-17  the word "condominium" or be followed by the words "a condominium"
  13-18  or a phrase that includes the word "condominium," and the name of
  13-19  the association;
  13-20              (2)  the name of each county in which any part of the
  13-21  condominium is located;
  13-22              (3)  a legally sufficient description of the real
  13-23  property included in the condominium;
  13-24              (4)  a description of the boundaries of each unit
  13-25  created by the declaration, including the unit's identifying
  13-26  number;
  13-27              (5)  a statement of the maximum number of units that
   14-1  the declarant reserves the right to create;
   14-2              (6)  a description of the limited common elements other
   14-3  than those listed in Sections 82.052(2) and (4);
   14-4              (7)  a description of any real property, except real
   14-5  property subject to development rights, that may be allocated
   14-6  subsequently as limited common elements, together with a statement
   14-7  that the property may be so allocated;
   14-8              (8)  an allocation to each unit of its allocated
   14-9  interests;
  14-10              (9)  any restrictions on use, occupancy, or alienation
  14-11  of the units;
  14-12              (10)  a description of and the recording data for
  14-13  recorded easements and licenses appurtenant to or included in the
  14-14  condominium or to which any portion of the condominium is or may
  14-15  become subject by reservation in the declaration;
  14-16              (11)  the method of amending the declaration;
  14-17              (12)  a plat or plan or the recording data of a plat or
  14-18  plan that has been recorded in the real property or condominium
  14-19  plat records;
  14-20              (13)  a statement of the association's obligation under
  14-21  Section 82.111(i) to rebuild or repair any part of the condominium
  14-22  after a casualty or any other disposition of the proceeds of a
  14-23  casualty insurance policy;
  14-24              (14)  a description of any development rights and other
  14-25  special declarant rights reserved by the declarant, together with a
  14-26  legally sufficient description of the real property to which each
  14-27  of those rights applies, and a time limit within which each of
   15-1  those rights must be exercised;
   15-2              (15)  if any development right may be exercised with
   15-3  respect to different parcels of real property at different times, a
   15-4  statement to that effect, together with:
   15-5                    (A)  either a statement fixing the boundaries of
   15-6  those portions and regulating the order in which those portions may
   15-7  be subjected to the exercise of each development right, or a
   15-8  statement that no assurances are made in those regards; and
   15-9                    (B)  a statement as to whether, if any
  15-10  development right is exercised in any portion of the real property
  15-11  subject to that development right, that development right must be
  15-12  exercised in all or in any other portion of the remainder of that
  15-13  real property;
  15-14              (16)  all matters required by this chapter to be stated
  15-15  in the declaration; and
  15-16              (17)  any other matters the declarant considers
  15-17  appropriate.
  15-18        Sec. 82.056.  LEASEHOLD CONDOMINIUMS.  (a)  Any lease the
  15-19  expiration or termination of which may terminate the condominium or
  15-20  reduce its size must be recorded.  The lessor shall sign the
  15-21  declaration, and the declaration must state:
  15-22              (1)  the recording data for the lease;
  15-23              (2)  the date on which the lease is scheduled to
  15-24  expire;
  15-25              (3)  a legally sufficient description of the real
  15-26  property subject to the lease;
  15-27              (4)  any right of the unit owners to redeem the
   16-1  reversion and the manner in which the unit owners may exercise that
   16-2  right, or a statement that the unit owners do not have that right;
   16-3              (5)  any right of the unit owners to remove
   16-4  improvements within a reasonable time after the expiration or
   16-5  termination of the lease, or a statement that the unit owners do
   16-6  not have that right; and
   16-7              (6)  any right of the unit owners to renew the lease
   16-8  and the conditions of renewal, or a statement that the unit owners
   16-9  do not have that right.
  16-10        (b)  After the declaration for a leasehold condominium is
  16-11  recorded, neither the lessor nor the lessor's successor in interest
  16-12  may terminate the leasehold interest of a unit owner who makes
  16-13  timely payment of the unit owner's share of the rent and otherwise
  16-14  complies with all covenants that, if violated, would entitle the
  16-15  lessor to terminate the lease.  A unit owner's leasehold interest
  16-16  is not affected by failure of any other person to pay rent or
  16-17  fulfill any other covenant.
  16-18        (c)  Acquisition of the leasehold interest of a unit owner by
  16-19  the owner of the reversion or remainder does not merge the
  16-20  leasehold and fee simple interests unless the leasehold interests
  16-21  of all unit owners subject to that reversion or remainder are
  16-22  acquired.
  16-23        (d)  If the expiration or termination of a lease decreases
  16-24  the number of units in a condominium, the allocated interests shall
  16-25  be reallocated as though those units had been taken by condemnation
  16-26  unless otherwise provided by the declaration.  Reallocation shall
  16-27  be confirmed by an amendment to the declaration prepared, executed,
   17-1  and recorded by the association.
   17-2        Sec. 82.057.  ALLOCATION OF COMMON ELEMENT INTERESTS, VOTES,
   17-3  AND COMMON EXPENSE LIABILITIES.  (a)  The declaration shall
   17-4  allocate a fraction or percentage of undivided interests in the
   17-5  common elements and in the common expenses of the association, and
   17-6  a portion of the votes in the association, to each unit and state
   17-7  the formulas used to establish those allocations.  These
   17-8  allocations may not discriminate in favor of units owned by a
   17-9  declarant.
  17-10        (b)  If units may be added to or withdrawn from the
  17-11  condominium, the declaration must state the formulas to be used to
  17-12  reallocate the allocated interests among all units included in the
  17-13  condominium after the addition or withdrawal.
  17-14        (c)  The declaration may provide:
  17-15              (1)  that different allocations of votes must be made
  17-16  to the units on particular matters specified in the declaration;
  17-17  and
  17-18              (2)  for class voting on specified issues affecting the
  17-19  class if necessary to protect valid interests of the class.
  17-20        (d)  A declarant may not use cumulative or class voting to
  17-21  evade any limitation imposed on declarants by this chapter.  Units
  17-22  may not constitute a class because the units are owned by a
  17-23  declarant.
  17-24        (e)  Except for minor variations due to rounding, the sums of
  17-25  the undivided interests in the common elements and of the common
  17-26  expense liabilities allocated at any time to all the units shall
  17-27  each equal one if stated as fractions or 100 percent if stated as
   18-1  percentages.  If a discrepancy exists between an allocated interest
   18-2  and the result derived from application of the pertinent formula,
   18-3  the allocated interest prevails.
   18-4        (f)  The common elements are not subject to partition.  Any
   18-5  purported conveyance, judicial sale, or other voluntary or
   18-6  involuntary transfer of an undivided interest in the common
   18-7  elements without the unit to which that interest is allocated is
   18-8  void.
   18-9        Sec. 82.058.  LIMITED COMMON ELEMENTS.  (a)  The limited
  18-10  common elements and the provisions of the declaration relating to
  18-11  the right to use the limited common elements may not be altered
  18-12  without the consent of each affected unit owner and the owner's
  18-13  first lien mortgagee.
  18-14        (b)  Except as otherwise provided by the declaration, a
  18-15  limited common element may be reallocated by an amendment to the
  18-16  declaration, executed by the unit owners between or among whose
  18-17  units the reallocation is made.  The persons executing the
  18-18  amendment shall deliver it to the association, which shall record
  18-19  it at the expense of the reallocating unit owners.
  18-20        (c)  A common element not previously allocated as a limited
  18-21  common element may not be allocated except pursuant to the
  18-22  declaration made in accordance with Section 82.055(7).  The
  18-23  allocation shall be made by amendment to the declaration.
  18-24        Sec. 82.059.  PLATS AND PLANS.  (a)  Plats and plans are a
  18-25  part of the declaration and may be recorded as a part of the
  18-26  declaration or separately.  Each plat or plan must be legible and
  18-27  contain a certification that the plat or plan contains all
   19-1  information required by this section.
   19-2        (b)  Each plat must show:
   19-3              (1)  the name and a survey or general schematic map of
   19-4  the entire condominium;
   19-5              (2)  the location and dimensions of all real property
   19-6  not subject to development rights, or subject only to the
   19-7  development right to withdraw, and the location and dimensions of
   19-8  all existing improvements within that real property;
   19-9              (3)  a legally sufficient description of any real
  19-10  property subject to development rights, labeled to identify the
  19-11  rights applicable to each parcel;
  19-12              (4)  the extent of any encroachments by or on any
  19-13  portion of the condominium;
  19-14              (5)  to the extent feasible, a legally sufficient
  19-15  description of all easements serving or burdening any portion of
  19-16  the condominium, and the location of any underground utility line
  19-17  that is actually known by the declarant at the time of filing the
  19-18  declaration to have been constructed outside a recorded easement;
  19-19              (6)  the location and dimensions of any vertical unit
  19-20  boundaries not shown or projected on recorded plans and the unit's
  19-21  identifying number;
  19-22              (7)  the location, with reference to established data,
  19-23  of any horizontal unit boundaries not shown or projected on
  19-24  recorded plans and the unit's identifying number;
  19-25              (8)  a legally sufficient description of any real
  19-26  property in which the unit owners will own only an estate for
  19-27  years, labeled as "leasehold real property";
   20-1              (9)  the distance between noncontiguous parcels of real
   20-2  property constituting the condominium;
   20-3              (10)  the location and dimensions of limited common
   20-4  elements, other than those described by Sections 82.052(2) and (4);
   20-5              (11)  in the case of real property not subject to
   20-6  development rights, all other matters required by law on land
   20-7  surveys; and
   20-8              (12)  the distance and bearings locating each building
   20-9  from all other buildings and from at least one boundary line of the
  20-10  real property constituting the condominium.
  20-11        (c)  A plat may also show the intended location and
  20-12  dimensions of a contemplated improvement to be constructed anywhere
  20-13  within the condominium, which must be labeled either "MUST BE
  20-14  BUILT" or "NEED NOT BE BUILT."
  20-15        (d)  To the extent not shown on the plats, plans must show:
  20-16              (1)  the location and dimensions of the vertical
  20-17  boundaries of each unit, and the unit's identifying number;
  20-18              (2)  the horizontal unit boundaries, with reference to
  20-19  established data, and the unit's identifying number; and
  20-20              (3)  any units, appropriately identified, in which the
  20-21  declarant has reserved the right to create additional units or
  20-22  common elements.
  20-23        (e)  Unless the declaration provides otherwise, the
  20-24  horizontal boundaries of part of a unit located outside a building
  20-25  have the same elevation as the horizontal boundaries of the inside
  20-26  part and need not be depicted on the plats and plans.  Interior
  20-27  walls and partitions within a unit need not be included in the
   21-1  plats or plans.
   21-2        (f)  On exercising any development right, the declarant shall
   21-3  record either new plats and plans necessary to conform to the
   21-4  requirements of this section or new certifications of plats and
   21-5  plans previously recorded if those plats and plans otherwise
   21-6  conform to the requirements of this section.
   21-7        (g)  An independent licensed surveyor or engineer shall
   21-8  certify at least one plat, whether contained in one or more pages,
   21-9  showing all perimeter land boundaries of the condominium, except
  21-10  for additional real property, and showing the locations on the
  21-11  ground of all buildings labeled "MUST BE BUILT" in relation to land
  21-12  boundaries.  Certification of any other plat or plan required by
  21-13  this chapter shall be made by an independent licensed architect,
  21-14  surveyor, or engineer.
  21-15        Sec. 82.060.  EXERCISE OF DEVELOPMENT RIGHT.  (a)  To
  21-16  exercise a development right, the declarant must prepare, execute,
  21-17  and record an amendment to the declaration and record new plats and
  21-18  plans for that real property.  The declarant is the unit owner of
  21-19  any units created.  The amendment to the declaration must assign an
  21-20  identifying number to each new unit created and, except for
  21-21  subdivision or conversion of units described by Subsection (b),
  21-22  reallocate the allocated interest among all units.  The amendment
  21-23  must describe any limited common elements created, designating the
  21-24  unit to which each is allocated.
  21-25        (b)  Development rights may be reserved within any real
  21-26  property added to the condominium if the amendment adding the real
  21-27  property includes the information required by Section 82.055 or
   22-1  82.056, as appropriate, and the plats and plans include the
   22-2  information required by Section 82.059(b).  This provision does not
   22-3  extend the time limit on the exercise of development rights imposed
   22-4  by the declaration.  Real property to be added is not part of a
   22-5  condominium or subject to a declaration until the declaration is
   22-6  amended to make the additional real property part of the
   22-7  condominium.
   22-8        (c)  Whenever a declarant exercises a development right to
   22-9  subdivide or convert a unit previously created into additional
  22-10  units, common elements, or both:
  22-11              (1)  if the declarant converts the unit entirely to
  22-12  common elements, the amendment to the declaration must reallocate
  22-13  all the allocated interests of the unit among the other units as if
  22-14  the unit had been taken by condemnation; and
  22-15              (2)  if the declarant subdivides the unit into two or
  22-16  more units, whether or not any part of the unit is converted into
  22-17  common elements, the amendment  to the declaration must reallocate
  22-18  all the allocated interests of the unit among the units created by
  22-19  the subdivision in any reasonable manner prescribed by the
  22-20  declarant.
  22-21        (d)  If the declaration provides that all or a portion of the
  22-22  real property is subject to the development right of withdrawal:
  22-23              (1)  if all the real property is subject to withdrawal,
  22-24  and the declaration does not describe separate portions of real
  22-25  property subject to that right, none of the real property may be
  22-26  withdrawn after a unit has been conveyed to a purchaser; and
  22-27              (2)  if a portion or portions are subject to
   23-1  withdrawal, no portion may be withdrawn after a unit in that
   23-2  portion has been conveyed to a purchaser.
   23-3        Sec. 82.061.  ALTERATIONS OF UNITS.  (a)  Subject to the
   23-4  provisions of the declaration and other provisions of law, a unit
   23-5  owner:
   23-6              (1)  may make improvements or alterations to the
   23-7  owner's unit that do not impair the structural integrity or
   23-8  mechanical systems or lessen the support of any portion of the
   23-9  condominium;
  23-10              (2)  may not change the appearance of the common
  23-11  elements or the exterior appearance of a unit or any other portion
  23-12  of the condominium without prior written permission of the
  23-13  association; and
  23-14              (3)  after acquiring an adjoining unit or an adjoining
  23-15  part of an adjoining unit, with the prior written approval of the
  23-16  association, may remove, alter, and create apertures in an
  23-17  intervening partition, even if the partition in whole or in part is
  23-18  a common element, if those acts do not impair the structural
  23-19  integrity or mechanical systems or lessen the support of any
  23-20  portion of the condominium.
  23-21        (b)  Removal of partitions or creation of apertures under
  23-22  Subsection (a)(3) is not an alteration of boundaries.
  23-23        Sec. 82.062.  RELOCATION OF BOUNDARIES BETWEEN ADJOINING
  23-24  UNITS.  Subject to the declaration, the boundaries between
  23-25  adjoining units may be relocated by an amendment to the declaration
  23-26  on written application to the association by the owners of those
  23-27  units.  If the owners of the adjoining units have specified a
   24-1  reallocation between their units of their allocated interests, the
   24-2  application must state the proposed reallocations.  Unless the
   24-3  board determines not later than the 30th day after the date the
   24-4  application is received that the reallocation is unreasonable, the
   24-5  association shall prepare an amendment that identifies the units
   24-6  involved, states the reallocation, is executed by the applying unit
   24-7  owners, and contains words of conveyance between them.  At the
   24-8  expense of the applying unit owners, the association shall prepare
   24-9  and record the amendment and plats or plans necessary to show the
  24-10  altered boundaries between adjoining units, and the units'
  24-11  dimensions and identifying numbers.
  24-12        Sec. 82.063.  SUBDIVISION OF UNITS.  (a)  If the declaration
  24-13  expressly permits, a unit may be subdivided into two or more units.
  24-14  Subject to the declaration, on written application of a unit owner
  24-15  to subdivide a unit and after payment by the unit owner of the cost
  24-16  of preparing and recording amendments and plats, the association
  24-17  shall prepare, execute, and record an amendment to the declaration,
  24-18  including the plats and plans, subdividing the unit.
  24-19        (b)  The amendment to the declaration must be executed by the
  24-20  owner of the unit to be subdivided, assign an identifying number to
  24-21  each unit created, and reallocate the allocated interests formerly
  24-22  allocated to the subdivided unit to the new units in any reasonable
  24-23  manner prescribed by the owner of the subdivided unit.
  24-24        Sec. 82.064.  EASEMENT FOR ENCROACHMENTS.  To the extent that
  24-25  a unit or common element encroaches on another unit or common
  24-26  element, a valid easement for the encroachment exists.  The
  24-27  easement does not relieve a unit owner of liability in case of the
   25-1  owner's wilful misconduct nor relieve a declarant or any other
   25-2  person of liability for failure to adhere to the plats and plans.
   25-3        Sec. 82.065.  USE FOR SALES PURPOSES.  The declaration may
   25-4  permit a declarant to maintain sales, leasing, or management
   25-5  offices and models in units or on common elements in the
   25-6  condominium if the declaration specifies the rights of a declarant
   25-7  with regard to the number, size, location, and relocation of the
   25-8  offices and models.  If the declaration fails to expressly permit
   25-9  an office or model, a declarant may maintain no more than one unit
  25-10  as a model and no more than one unit as an office for sales,
  25-11  leasing, and management purposes at any one time.  A sales,
  25-12  leasing, or management office or model not designated as a unit by
  25-13  the declaration is a common element and is subject to the exclusive
  25-14  use of a declarant until the declarant ceases to be a unit owner or
  25-15  until the declarant no longer uses the office or model for such
  25-16  purposes, whichever occurs earlier.  A declarant may modify the
  25-17  exterior of a sales, leasing, or management office to conform to
  25-18  the aesthetic exterior plan of the condominium.  A declarant who
  25-19  ceases to be a unit owner ceases to have any rights with regard to
  25-20  an office or model unless it is removed within a reasonable time
  25-21  from the condominium in accordance with a right to remove reserved
  25-22  in the declaration.  Subject to limitations in the declaration, a
  25-23  declarant may maintain signs on the common elements that advertise
  25-24  the condominium for sale or lease.  This section is subject to
  25-25  local ordinances and other state law.
  25-26        Sec. 82.066.  EASEMENT RIGHTS.  Subject to the declaration, a
  25-27  declarant has an easement through the common elements as may be
   26-1  reasonably necessary for discharging the declarant's obligations or
   26-2  exercising special declarant rights whether arising under this
   26-3  chapter or reserved by the declaration.
   26-4        Sec. 82.067.  AMENDMENT OF DECLARATION.  (a)  Except as
   26-5  provided by Subsection (b), a declaration, including the plats and
   26-6  plans, may be amended only by vote or agreement of unit owners to
   26-7  which at least 67 percent of the votes in the association are
   26-8  allocated, or any larger majority the declaration specifies.  A
   26-9  declaration may specify a smaller number only if all of the units
  26-10  are restricted exclusively to nonresidential use.  An amendment to
  26-11  a declaration may be adopted:
  26-12              (1)  by written ballot that states the exact wording or
  26-13  substance of the amendment and that specifies the date by which a
  26-14  ballot must be received to be counted;
  26-15              (2)  at a meeting of the members of the association
  26-16  after written notice of the meeting has been delivered to an owner
  26-17  of each unit stating that a purpose of the meeting is to consider
  26-18  an amendment to the declaration; or
  26-19              (3)  by any method permitted by the declaration.
  26-20        (b)  The amendment procedures of this section do not apply to
  26-21  amendments that may be executed by:
  26-22              (1)  a declarant under Section 82.051(c), 82.059(f), or
  26-23  82.060 or Subsection (f);
  26-24              (2)  the association under Section 82.007, 82.056(d),
  26-25  82.058(c), 82.062, or 82.063 or Subsection (f); or
  26-26              (3)  certain unit owners under Section 82.058(b),
  26-27  82.062, 82.063(b), or 82.068(b).
   27-1        (c)  An action to challenge the validity of an amendment
   27-2  adopted by the association under this section must be brought
   27-3  before the first anniversary of the date the amendment is recorded.
   27-4        (d)  To be effective, an amendment to the declaration must be
   27-5  recorded in each county in which any portion of the condominium is
   27-6  located.
   27-7        (e)  Except as permitted or required by this chapter, an
   27-8  amendment may not create or increase special declarant rights,
   27-9  increase the number of units, change the boundaries of a unit,
  27-10  alter or destroy a unit or limited common element, change a unit's
  27-11  allocated interest, or change the use restrictions on a unit unless
  27-12  the amendment is approved by 100 percent of the votes in the
  27-13  association.  Except as agreed to by the declarant, an amendment
  27-14  may not increase or otherwise modify the obligations imposed by a
  27-15  declaration on a declarant, or reduce or otherwise modify the
  27-16  rights granted by a declaration to a declarant, including special
  27-17  declarant rights.
  27-18        (f)  If permitted by the declaration, the board or the
  27-19  declarant, if the declarant owns a unit that has never been
  27-20  occupied, may without a vote of the unit owners or approval of the
  27-21  association amend the declaration in any manner necessary to meet
  27-22  the requirements of the Federal National Mortgage Association, the
  27-23  Federal Home Loan Mortgage Corporation, the Federal Housing
  27-24  Administration, or the Veterans Administration.
  27-25        (g)  Amendments to the declaration required by this chapter
  27-26  to be recorded by the association must be prepared, executed,
  27-27  recorded, and certified by an officer of the association designated
   28-1  for that purpose or, in the absence of designation, by the
   28-2  president of the association.
   28-3        (h)  An association may amend the declaration to authorize
   28-4  the board:
   28-5              (1)  to bring an action to evict a tenant of a unit
   28-6  owner for the tenant's violation of the declaration, bylaws, or
   28-7  rules of the association;
   28-8              (2)  to bring an action to evict a tenant of a unit
   28-9  owner who fails to pay the association for the cost of repairs to
  28-10  common elements damaged substantially by the owner's tenant; or
  28-11              (3)  to collect rents from a tenant of a unit owner who
  28-12  is at least 60 days' delinquent in the payment of any amount due to
  28-13  the association.
  28-14        Sec. 82.068.  TERMINATION OF CONDOMINIUM.  (a)  Unless the
  28-15  declaration provides otherwise and except for a taking of all the
  28-16  units by condemnation, a condominium may be terminated only by the
  28-17  agreement of 100 percent of the votes in the association and each
  28-18  holder of a deed of trust or vendor's lien on a unit.  The
  28-19  declaration may not allow a termination by less than 80 percent of
  28-20  the votes in the association if any unit is restricted exclusively
  28-21  to residential uses.
  28-22        (b)  An agreement of unit owners to terminate a condominium
  28-23  must be evidenced by the execution or ratification of a termination
  28-24  agreement by the requisite number of unit owners.  If, pursuant to
  28-25  a termination agreement, the real property constituting the
  28-26  condominium is to be sold following termination, the termination
  28-27  agreement must set forth the terms  of the sale.  To be effective,
   29-1  a termination agreement and all ratifications of the agreement must
   29-2  be recorded in each county in which a portion of the condominium is
   29-3  located.
   29-4        (c)  The association, on behalf of the unit owners, may
   29-5  contract for the sale of real property in the condominium, but the
   29-6  contract is not binding on the unit owners until it is approved
   29-7  under Subsections (a) and (b).  If the real property constituting
   29-8  the condominium is to be sold following termination, on termination
   29-9  title to that real property vests in the association as trustee for
  29-10  the holders of all interests in the units, and the association has
  29-11  all powers necessary and appropriate to effect the sale, including
  29-12  the power to convey the interests of nonconsenting owners.  Until
  29-13  the sale has been concluded and the proceeds distributed, the
  29-14  association shall continue to exist and retains the powers it had
  29-15  before termination.  Proceeds of the sale must be distributed to
  29-16  unit owners and lienholders as their interests may appear, in
  29-17  proportion to the respective interests of unit owners as provided
  29-18  by Subsection (f).  Unless the termination agreement specifies
  29-19  differently, as long as the association holds title to the real
  29-20  property, each unit owner and the owner's successors in interest
  29-21  have an exclusive right to occupy the portion of the real property
  29-22  that formerly constituted the owner's unit.  During that period of
  29-23  occupancy a unit owner and the owner's successors in interest
  29-24  remain liable for all assessments and other obligations imposed on
  29-25  unit owners by this chapter or the declaration.
  29-26        (d)  If the real property constituting the condominium is not
  29-27  to be sold following termination, on termination title to the real
   30-1  property vests in the unit owners as tenants in common in
   30-2  proportion to their respective interests, and liens on the units
   30-3  shift accordingly.  While the tenancy in common exists, a unit
   30-4  owner and the owner's successors in interest have an exclusive
   30-5  right to occupy the portion of the real property that formerly
   30-6  constituted the owner's unit.
   30-7        (e)  Following termination of the condominium, and after
   30-8  payment of or provision for the claims of the association's
   30-9  creditors, the assets of the association shall be distributed to
  30-10  unit owners in proportion to their respective interests.  The
  30-11  proceeds of sale described by Subsection (c) and held by the
  30-12  association as trustee are not assets of the association.
  30-13        (f)  The interest of a unit owner referred to in Subsections
  30-14  (c), (d), and (e) is, except as provided by Subsection (g), the
  30-15  fair market value of the owner's unit, limited common elements, and
  30-16  common element interest immediately before the termination, as
  30-17  determined by one or more independent appraisers selected by the
  30-18  association.  The decision of the independent appraisers shall be
  30-19  distributed to the unit owners and becomes final unless disapproved
  30-20  by unit owners of units to which 25 percent of the votes in the
  30-21  association are allocated not later than the 30th day after the
  30-22  date of distribution.  The proportion of a unit owner's interest to
  30-23  that of all unit owners is determined by dividing the fair market
  30-24  value of the unit owner's unit and common element interest by the
  30-25  total fair market values of all the units and common elements.
  30-26        (g)  If a unit or a limited common element is destroyed to
  30-27  the extent that an appraisal of the fair market value before the
   31-1  destruction cannot be made, the interest of a unit owner is the
   31-2  owner's common element interest immediately before the termination.
   31-3        (h)  Foreclosure or enforcement of a lien or encumbrance
   31-4  against the entire condominium does not of itself terminate the
   31-5  condominium, and foreclosure or enforcement of a lien or
   31-6  encumbrance against a portion of the condominium does not withdraw
   31-7  that portion from the condominium, unless the portion is
   31-8  withdrawable real property or unless the mortgage being foreclosed
   31-9  was recorded before the date the declaration was recorded and the
  31-10  mortgagee did not consent in writing to the declaration.
  31-11        (i)  By agreement of the same percentage of unit owners that
  31-12  is required to terminate the condominium, the unit owners may
  31-13  rescind a termination agreement and reinstate the declaration in
  31-14  effect immediately before the election to terminate.  To be
  31-15  effective, the rescission agreement must be in writing, executed by
  31-16  the unit owners who desire to rescind, and recorded in each county
  31-17  in which any portion of the condominium is located.
  31-18        Sec. 82.069.  RIGHTS OF SECURED LENDERS.  The declaration may
  31-19  require that all or a specified number or percentage of the
  31-20  mortgagees or beneficiaries of deeds of trust encumbering the units
  31-21  approve specified actions of the unit owners or the association as
  31-22  a condition to the effectiveness of those actions, but a
  31-23  requirement for approval may not operate to:
  31-24              (1)  deny or delegate control over the general
  31-25  administrative affairs of the association by the unit owners or the
  31-26  board; or
  31-27              (2)  prevent the association or the board from:
   32-1                    (A)  commencing, intervening in, or settling any
   32-2  litigation or proceeding; or
   32-3                    (B)  receiving and distributing insurance
   32-4  proceeds under Section 82.111.
   32-5          (Sections 82.070 to 82.100 reserved for expansion
   32-6                 SUBCHAPTER C.  CONDOMINIUM MANAGEMENT
   32-7        Sec. 82.101.  ORGANIZATION OF UNIT OWNERS' ASSOCIATION.  A
   32-8  unit owners' association must be organized as a profit or nonprofit
   32-9  corporation.  The declarant may not convey a unit until the
  32-10  secretary of state has issued a certificate of incorporation under
  32-11  Article 3.03, Texas Business Corporation Act, or Article 3.03,
  32-12  Texas Non-Profit Corporation Act (Article 1396-3.03, Vernon's Texas
  32-13  Civil Statutes).  The membership of the association at all times
  32-14  consists exclusively of all the unit owners or, following
  32-15  termination of the condominium, all former unit owners entitled to
  32-16  distribution of proceeds, or the owners' heirs, successors, or
  32-17  assigns.
  32-18        Sec. 82.102.  POWERS OF UNIT OWNERS' ASSOCIATION.  (a)
  32-19  Unless otherwise provided by the declaration, the association,
  32-20  acting through its board, may:
  32-21              (1)  adopt and amend bylaws;
  32-22              (2)  adopt and amend budgets for revenues,
  32-23  expenditures, and reserves, and collect assessments for common
  32-24  expenses from unit owners;
  32-25              (3)  hire and terminate managing agents and other
  32-26  employees, agents, and independent contractors;
  32-27              (4)  institute, defend, intervene in, settle, or
   33-1  compromise litigation or administrative proceedings in its own name
   33-2  on behalf of itself or two or more unit owners on matters affecting
   33-3  the condominium;
   33-4              (5)  make contracts and incur liabilities relating to
   33-5  the operation of the condominium;
   33-6              (6)  regulate the use, maintenance, repair,
   33-7  replacement, modification, and appearance of the condominium;
   33-8              (7)  adopt and amend rules regulating the use,
   33-9  occupancy, leasing or sale, maintenance, repair, modification, and
  33-10  appearance of units and common elements, to the extent the
  33-11  regulated actions affect common elements or other units;
  33-12              (8)  cause additional improvements to be made as a part
  33-13  of the common elements;
  33-14              (9)  acquire, hold, encumber, and convey in its own
  33-15  name any right, title, or interest to real or personal property,
  33-16  except common elements of the condominium;
  33-17              (10)  grant easements, leases, licenses, and
  33-18  concessions through or over the common elements;
  33-19              (11)  impose and receive payments, fees, or charges for
  33-20  the use, rental, or operation of the common elements and for
  33-21  services provided to unit owners;
  33-22              (12)  impose interest and late charges for late
  33-23  payments of assessments, returned check charges, and, if notice and
  33-24  an opportunity to be heard are given, reasonable fines for
  33-25  violations of the declaration, bylaws, and rules of the
  33-26  association;
  33-27              (13)  adopt and amend rules regulating the collection
   34-1  of delinquent assessments and the application of payments;
   34-2              (14)  adopt and amend rules regulating the termination
   34-3  of utility service to a unit, the owner of which is delinquent in
   34-4  the payment of an assessment that is used, in whole or in part, to
   34-5  pay the cost of that utility;
   34-6              (15)  impose reasonable charges for preparing,
   34-7  recording, or copying declaration amendments, resale certificates,
   34-8  or statements of unpaid assessments;
   34-9              (16)  enter a unit for bona fide emergency purposes
  34-10  when conditions present an imminent risk of harm or damage to the
  34-11  common elements, another unit, or the occupants;
  34-12              (17)  assign its right to future income, including the
  34-13  right to receive common expense assessments, but only to the extent
  34-14  the declaration so provides;
  34-15              (18)  suspend the voting privileges of or the use of
  34-16  certain general common elements by an owner delinquent for more
  34-17  than 30 days in the payment of assessments;
  34-18              (19)  purchase insurance and fidelity bonds it
  34-19  considers appropriate or necessary;
  34-20              (20)  exercise any other powers conferred by the
  34-21  declaration or bylaws;
  34-22              (21)  exercise any other powers that may be exercised
  34-23  in this state by a corporation of the same type as the association;
  34-24  and
  34-25              (22)  exercise any other powers necessary and proper
  34-26  for the government and operation of the association.
  34-27        (b)  The declaration may not impose limitations on the power
   35-1  of the association to deal with the declarant that are more
   35-2  restrictive than the limitations imposed on the power of the
   35-3  association to deal with other persons.
   35-4        (c)  To be enforceable, a bylaw or rule of the association
   35-5  must not be arbitrary or capricious.
   35-6        (d)  Before an association may charge the unit owner for
   35-7  property damage for which the unit owner is liable or levy a fine
   35-8  for violation of the declaration, bylaws, or rules, the association
   35-9  shall give to the unit owner a written notice that:
  35-10              (1)  describes the violation or property damage and
  35-11  states the amount of the proposed fine or damage charge;
  35-12              (2)  states that not later than the 30th day after the
  35-13  date of the notice, the unit owner may request a hearing before the
  35-14  board to contest the fine or damage charge; and
  35-15              (3)  allows the unit owner a reasonable time, by a
  35-16  specified date, to cure the violation and avoid the fine unless the
  35-17  unit owner was given notice and a reasonable opportunity to cure a
  35-18  similar violation within the preceding twelve months.
  35-19        (e)  The association may give a copy of the notice required
  35-20  by Subsection (d) to an occupant of the unit.  The association must
  35-21  give notice of a levied fine or damage charge to the unit owner not
  35-22  later than the 30th day after the date of levy.
  35-23        Sec. 82.103.  BOARD MEMBERS AND OFFICERS.  (a)  Except as
  35-24  provided by the declaration, bylaws, or this chapter, the board
  35-25  shall act in all instances on behalf of the association if in the
  35-26  good-faith judgment of the board the action is reasonable.  Each
  35-27  officer or member of the board is liable as a fiduciary of the unit
   36-1  owners for the officer's or member's acts or omissions.  All acts
   36-2  of the association must be by and through the board unless
   36-3  otherwise provided by the declaration or bylaws or by law.
   36-4        (b)  The board may not act on behalf of the association to
   36-5  amend the declaration except as permitted by this chapter, to
   36-6  terminate the condominium, to elect members of the board, or to
   36-7  determine the qualifications, powers and duties, or terms of office
   36-8  of board members.  The board may fill a vacancy in its membership
   36-9  for the unexpired portion of a term.
  36-10        (c)  Subject to Subsection (d), the declaration may provide
  36-11  for a period of declarant control of the association during which a
  36-12  declarant, or persons designated by the declarant, may appoint and
  36-13  remove the officers and members of the board.  Regardless of the
  36-14  period provided by the declaration, a period of declarant control
  36-15  terminates not later than the 120th day after conveyance of 75
  36-16  percent of the units that may be created to unit owners other than
  36-17  a declarant.  Transfer of special declarant rights does not
  36-18  terminate the period of declarant control.  A declarant may
  36-19  voluntarily surrender the right to appoint and remove officers and
  36-20  members of the board before termination of the period, but in that
  36-21  event the declarant may require, for the duration of the period
  36-22  that the declarant would otherwise control, that specified actions
  36-23  of the association or board be approved by the declarant before
  36-24  they become effective.
  36-25        (d)  Not later than the 120th day after conveyance of 50
  36-26  percent of the units that may be created to unit owners other than
  36-27  a declarant, not less than one-third of the members of the board
   37-1  must be elected by unit owners other than the declarant.
   37-2        (e)  Not later than the termination of a period of declarant
   37-3  control, the unit owners shall elect a board of at least three
   37-4  members who need not be unit owners.  The board shall elect the
   37-5  officers before the 31st day after the date declarant control
   37-6  terminates.  The persons elected shall take office on election.
   37-7        (f)  An officer or director of the association is not liable
   37-8  to the association or any unit owner for monetary damages for an
   37-9  act or omission occurring in the person's capacity as an officer or
  37-10  director unless:
  37-11              (1)  the officer or director breached a fiduciary duty
  37-12  to the association or a unit owner;
  37-13              (2)  the officer or director received an improper
  37-14  benefit; or
  37-15              (3)  the act or omission was in bad faith, involved
  37-16  intentional misconduct, or was one for which liability is expressly
  37-17  provided by statute.
  37-18        (g)  Subsection (f) does not diminish a limitation of
  37-19  liability provided an officer or director of the association by the
  37-20  declaration, bylaws, articles of incorporation of the association,
  37-21  or other laws.
  37-22        Sec. 82.104.  TRANSFER OF SPECIAL DECLARANT RIGHTS.  (a)
  37-23  Special declarant rights created or reserved under this chapter may
  37-24  not be transferred except by an instrument evidencing the transfer
  37-25  recorded in each county in which any portion of the condominium is
  37-26  located.  The instrument is not effective unless executed by the
  37-27  transferee.
   38-1        (b)  On transfer of any special declarant right, a transferor
   38-2  is not relieved of an obligation or liability arising before the
   38-3  transfer.  A transferor is not liable for an act or omission or a
   38-4  breach of an obligation arising from the exercise of a special
   38-5  declarant right by a successor declarant who is not an affiliate of
   38-6  the transferor.
   38-7        (c)  Unless otherwise provided by a mortgage instrument or
   38-8  deed of trust, in case of foreclosure of a mortgage, tax sale,
   38-9  judicial sale, sale by a trustee under a deed of trust, or sale
  38-10  under Bankruptcy Code or receivership proceedings, of a unit owned
  38-11  by a declarant or of real property in a condominium subject to
  38-12  development rights, a person acquiring title to all the real
  38-13  property being foreclosed or sold may request to succeed to all
  38-14  special declarant rights or only to rights reserved by the
  38-15  declaration to maintain models, offices, and signs.  The judgment
  38-16  or instrument conveying title may provide for transfer of only the
  38-17  special declarant rights requested.
  38-18        (d)  On foreclosure, tax sale, judicial sale, sale by a
  38-19  trustee under a deed of trust, or sale under Bankruptcy Code or
  38-20  receivership proceedings of all units and other real property in a
  38-21  condominium owned by a declarant:
  38-22              (1)  the declarant ceases to have any special declarant
  38-23  rights; and
  38-24              (2)  the period of declarant control terminates unless
  38-25  the judgment or instrument conveying title provides for transfer of
  38-26  all special declarant rights held by that declarant to a successor
  38-27  declarant.
   39-1        (e)  The liabilities and obligations of a person who succeeds
   39-2  to special declarant rights are as follows:
   39-3              (1)  a successor to a special declarant right who is an
   39-4  affiliate of a declarant is subject to all obligations and
   39-5  liabilities imposed on the transferor by this chapter or by the
   39-6  declaration;
   39-7              (2)  a successor to a special declarant right, other
   39-8  than a successor described by Subdivision (3) or (4), who is not an
   39-9  affiliate of a declarant, is subject to all obligations and
  39-10  liabilities imposed on the transferor by this chapter or by the
  39-11  declaration;
  39-12              (3)  a successor to only a right reserved by the
  39-13  declaration to maintain models, offices, and signs, who is not an
  39-14  affiliate of a declarant, may not exercise any other special
  39-15  declarant right, and is not subject to any liability or obligation
  39-16  as a declarant, except the obligation to provide a condominium
  39-17  information statement and any liability arising as a result; and
  39-18              (4)  a successor to all special declarant rights held
  39-19  by the successor's transferor who is not an affiliate of that
  39-20  declarant and who succeeded to those rights pursuant to a deed in
  39-21  lieu of foreclosure or a judgment or instrument conveying title to
  39-22  units under Subsection (c) may declare the person's intention in a
  39-23  recorded instrument to hold those rights solely for transfer to
  39-24  another person; thereafter, until all special declarant rights are
  39-25  transferred to a person acquiring title to any unit owned by the
  39-26  successor, or until an instrument permitting exercise of all those
  39-27  rights is recorded, the successor may not exercise any of those
   40-1  rights other than any right held by the successor's transferor to
   40-2  control the board as provided by Section 82.103(c) for the duration
   40-3  of the period of declarant control, and an attempt to exercise
   40-4  those rights is void; so long as a successor declarant may not
   40-5  exercise special declarant rights under this subdivision, the
   40-6  successor is not subject to any liability or obligation as a
   40-7  declarant other than liability for acts and omissions under Section
   40-8  82.103(a).
   40-9        (f)  This section does not subject a successor to a special
  40-10  declarant right to any claims against or other obligations of a
  40-11  transferor declarant, other than claims and obligations arising
  40-12  under this chapter or the declaration.
  40-13        Sec. 82.105.  TERMINATION OF CONTRACTS AND LEASES OF
  40-14  DECLARANT.  An association in a residential or recreational
  40-15  condominium may terminate, without penalty, contracts or leases
  40-16  between the association and a declarant or an affiliate of a
  40-17  declarant if:
  40-18              (1)  the contract is entered into by the association
  40-19  while controlled by the declarant;
  40-20              (2)  the association terminates the contract or lease
  40-21  before the first anniversary of the date a board elected by the
  40-22  unit owners takes office; and
  40-23              (3)  the association gives at least 90 days' notice of
  40-24  its intent to terminate the contract or lease to the other party.
  40-25        Sec. 82.106.  BYLAWS.  (a)  The administration and operation
  40-26  of the condominium are governed by the bylaws, which must provide
  40-27  for:
   41-1              (1)  the number of members on the board and the titles
   41-2  of the officers of the association;
   41-3              (2)  election by the board of a president, treasurer,
   41-4  secretary, and any other officers the bylaws specify;
   41-5              (3)  the qualifications, powers and duties, terms of
   41-6  office, and the manner of electing and removing a board member or
   41-7  officer and filling vacancies;
   41-8              (4)  the powers, if any, that the board or an officer
   41-9  may delegate to other persons or to a managing agent;
  41-10              (5)  the designation of officers who are authorized to
  41-11  prepare, execute, certify, and record amendments to the declaration
  41-12  on behalf of the association;
  41-13              (6)  the method of amending the bylaws; and
  41-14              (7)  the manner of notice of meetings of the
  41-15  association.
  41-16        (b)  Subject to the declaration, the bylaws may provide for
  41-17  other matters the association considers desirable, necessary, or
  41-18  appropriate.
  41-19        Sec. 82.107.  UPKEEP OF CONDOMINIUM.  (a)  Except as provided
  41-20  by the declaration or Subsections (b) and (c), the association is
  41-21  responsible for maintenance, repair, and replacement of the common
  41-22  elements, and each unit owner is responsible for maintenance,
  41-23  repair, and replacement of the owner's unit.  Each unit owner shall
  41-24  afford to the association and the other unit owners, and to their
  41-25  agents or employees, access through the owner's unit reasonably
  41-26  necessary for those purposes.  If damage is inflicted on the common
  41-27  elements or on any unit through which access is taken, the unit
   42-1  owner responsible for the damage, or the association if it is
   42-2  responsible, is liable for the prompt repair of the damage.
   42-3        (b)  Except as provided by the declaration, each unit owner
   42-4  is responsible for the cost of maintenance, repair, and replacement
   42-5  of any utility installation or equipment serving only the owner's
   42-6  unit, without regard to whether the installation or equipment is
   42-7  located wholly or partially outside the designated boundaries of
   42-8  the unit.  For purposes of this subsection, utility installations
   42-9  and equipment include electricity, water, sewage, gas, water
  42-10  heaters, heating and air conditioning equipment, and television
  42-11  antennas.
  42-12        (c)  Except as provided by the declaration, each unit owner
  42-13  is responsible for the cost of maintenance, repair, and replacement
  42-14  of windows and doors serving only the owner's unit.
  42-15        (d)  Unless otherwise provided by the declaration, the
  42-16  association may enter a unit, after giving notice to the owner and
  42-17  occupant of the unit, to:
  42-18              (1)  prevent or terminate waste of water purchased by
  42-19  the association as a common expense; or
  42-20              (2)  perform maintenance and repairs of the condominium
  42-21  that, if not performed, may result in increased damage by water to
  42-22  components of the condominium that the association maintains.
  42-23        Sec. 82.108.  MEETINGS.  (a)  Meetings of the association
  42-24  must be held at least once each year.  Unless the declaration
  42-25  provides otherwise, special meetings of the association may be
  42-26  called by the president, a majority of the board, or unit owners
  42-27  having at least 20 percent of the votes in the association.  Notice
   43-1  of a meeting shall be given in accordance with the bylaws.
   43-2        (b)  Meetings of the association and board must be open to
   43-3  unit owners, subject to the right of the board to adjourn a meeting
   43-4  of the board and reconvene in closed executive session to consider
   43-5  actions involving personnel, pending litigation, contract
   43-6  negotiations, enforcement actions, matters involving the invasion
   43-7  of privacy of individual unit owners, or matters that are to remain
   43-8  confidential by request of the affected parties and agreement of
   43-9  the board.  The general nature of any business to be considered in
  43-10  executive session must first be announced at the open meeting.
  43-11        (c)  Unless the declaration, bylaws, or articles of
  43-12  incorporation of the association provide otherwise:
  43-13              (1)  a meeting of the board may be held by any method
  43-14  of communication, including electronic and telephonic, by which
  43-15  each director may hear and be heard by every other director; and
  43-16              (2)  in lieu of a meeting, the board may act by
  43-17  unanimous written consents of directors, to be filed with the
  43-18  minutes of board meetings.
  43-19        Sec. 82.109.  QUORUMS.  (a)  Unless the bylaws provide
  43-20  otherwise, a quorum is present throughout any meeting of the
  43-21  association if persons entitled to cast at least 20 percent of the
  43-22  votes that may be cast for election of the board are present in
  43-23  person or by proxy at the beginning of the meeting.  The bylaws may
  43-24  not reduce the standard for a quorum to less than 10 percent.
  43-25        (b)  Unless the bylaws specify a larger percentage, a quorum
  43-26  is present throughout a meeting of the board if persons entitled to
  43-27  cast at least 50 percent of the votes on the board are present at
   44-1  the beginning of the meeting.
   44-2        Sec. 82.110.  VOTING AND PROXIES.  (a)  If only one of the
   44-3  multiple owners of a unit is present at a meeting of the
   44-4  association, that person may cast the vote or votes allocated to
   44-5  that unit.  If more than one of the multiple owners is present, the
   44-6  vote or votes allocated to that unit may be cast only in accordance
   44-7  with the owners' unanimous agreement unless the declaration
   44-8  provides otherwise.  Multiple owners are in unanimous agreement if
   44-9  one of the multiple owners casts the votes allocated to a unit and
  44-10  none of the other owners makes prompt protest to the person
  44-11  presiding over the meeting.
  44-12        (b)  Votes allocated to a unit may be cast under a written
  44-13  proxy duly executed by a unit owner.   If a unit is owned by more
  44-14  than one person, each owner of the unit may vote or register
  44-15  protest to the casting of votes by the other owners of the unit
  44-16  through a proxy duly executed by the unit owner.  A unit owner may
  44-17  not revoke a proxy given under this section except by giving actual
  44-18  notice of revocation to the person presiding over a meeting of the
  44-19  association.  A proxy is void if it is not dated or if it purports
  44-20  to be revocable without notice.  A proxy terminates one year after
  44-21  its date unless it specifies a shorter or longer time.
  44-22        (c)  Cumulative voting is not allowed.
  44-23        Sec. 82.111.  INSURANCE.  (a)  Beginning not later than the
  44-24  time of the first conveyance of a unit to a person other than a
  44-25  declarant, the association shall maintain, to the extent reasonably
  44-26  available:
  44-27              (1)  property insurance on the insurable common
   45-1  elements insuring against all risks of direct physical loss
   45-2  commonly insured against, including fire and extended coverage, in
   45-3  a total amount of at least 80 percent of the replacement cost or
   45-4  actual cash value of the insured property as of the effective date
   45-5  and at each renewal date of the policy; and
   45-6              (2)  commercial general liability insurance, including
   45-7  medical payments insurance, in an amount determined by the board
   45-8  but not less than any amount specified by the declaration covering
   45-9  all occurrences commonly insured against for death, bodily injury,
  45-10  and property damage arising out of or in connection with the use,
  45-11  ownership, or maintenance of the common elements.
  45-12        (b)  If a building contains units having horizontal
  45-13  boundaries described in the declaration, the insurance maintained
  45-14  under Subsection (a)(1), to the extent reasonably available, must
  45-15  include the units, but need not include improvements and
  45-16  betterments installed by unit owners.
  45-17        (c)  If the insurance described by Subsections (a) and (b) is
  45-18  not reasonably available, the association shall cause notice of
  45-19  that fact to be delivered or mailed to all unit owners and
  45-20  lienholders.  The declaration may require the association to carry
  45-21  any other insurance, and the association in any event may carry any
  45-22  other insurance the board considers appropriate to protect the
  45-23  condominium, the association, or the unit owners.  This section
  45-24  does not affect the right of a holder of a mortgage on a unit to
  45-25  require a unit owner to acquire insurance in addition to that
  45-26  provided by the association.
  45-27        (d)  Insurance policies carried under Subsection (a) must
   46-1  provide that:
   46-2              (1)  each unit owner is an insured person under the
   46-3  policy with respect to liability arising out of the person's
   46-4  ownership of an undivided interest in the common elements or
   46-5  membership in the association;
   46-6              (2)  the insurer waives its right to subrogation under
   46-7  the policy against a unit owner;
   46-8              (3)  no action or omission of a unit owner, unless
   46-9  within the scope of the unit owner's authority on behalf of the
  46-10  association, will void the policy or be a condition to recovery
  46-11  under the policy; and
  46-12              (4)  if, at the time of a loss under the policy, there
  46-13  is other insurance in the name of a unit owner covering the same
  46-14  property covered by the policy, the association's policy provides
  46-15  primary insurance.
  46-16        (e)  A claim for any loss covered by the policy under
  46-17  Subsection (a)(1) must be submitted by and adjusted with the
  46-18  association.  The insurance proceeds for that loss shall be payable
  46-19  to an insurance trustee designated by the association for that
  46-20  purpose, if the designation of an insurance trustee is considered
  46-21  by the board to be necessary or desirable, or otherwise to the
  46-22  association, and not to any unit owner or lienholder.
  46-23        (f)  The insurance trustee or the association shall hold
  46-24  insurance proceeds in trust for unit owners and lienholders as
  46-25  their interests may appear.  Subject to Subsection (i), the
  46-26  proceeds paid under a policy must be disbursed first for the repair
  46-27  or restoration of the damaged common elements and units, and unit
   47-1  owners and lienholders are not entitled to receive payment of any
   47-2  portion of the proceeds unless there is a surplus of proceeds after
   47-3  the property has been completely repaired or restored, or the
   47-4  condominium is terminated.
   47-5        (g)  An insurance policy issued to the association does not
   47-6  prevent a unit owner from obtaining insurance for the owner's own
   47-7  benefit.
   47-8        (h)  The insurer issuing the policy may not cancel or refuse
   47-9  to renew it less than 30 days after written notice of the proposed
  47-10  cancellation or nonrenewal has been mailed to the association.
  47-11        (i)  Any portion of the condominium for which insurance is
  47-12  required that is damaged or destroyed shall be promptly repaired or
  47-13  replaced by the association unless the condominium is terminated,
  47-14  repair or replacement would be illegal under any state or local
  47-15  health or safety statute or ordinance, or at least 80 percent of
  47-16  the unit owners, including each owner of a unit or assigned limited
  47-17  common element that will not be rebuilt or repaired, vote to not
  47-18  rebuild.  A vote to not rebuild does not increase an insurer's
  47-19  liability to loss payment obligation under a policy, and the vote
  47-20  does not cause a presumption of total loss.  The cost of repair or
  47-21  replacement in excess of the insurance proceeds and reserves is a
  47-22  common expense.  If the entire condominium is not repaired or
  47-23  replaced, any insurance proceeds attributable to the damaged common
  47-24  elements shall be used to restore the damaged area to a condition
  47-25  compatible with the remainder of the condominium, the insurance
  47-26  proceeds attributable to units and limited common elements that are
  47-27  not rebuilt shall be distributed to the owners of those units and
   48-1  the owners of the units to which those limited common elements were
   48-2  assigned, or to their mortgagees, as their interests may appear,
   48-3  and the remainder of the proceeds shall be distributed to all the
   48-4  unit owners as their interests may appear.  If the unit owners vote
   48-5  to not rebuild any unit, that unit's allocated interests shall be
   48-6  automatically reallocated on the vote as if the unit had been
   48-7  condemned, and the association shall prepare, execute, and record
   48-8  an amendment to the declaration reflecting the reallocation.
   48-9  Section 82.068 governs the distribution of insurance proceeds if
  48-10  the condominium is terminated.
  48-11        (j)  The provisions of this section may be varied or waived
  48-12  if all the units in a condominium are restricted to nonresidential
  48-13  use.
  48-14        Sec. 82.112.  ASSESSMENTS FOR COMMON EXPENSES.  (a)  Until an
  48-15  association makes a common expense assessment, a declarant shall
  48-16  pay all the expenses of the condominium as the expenses accrue.
  48-17  After an initial assessment by an association, assessments must be
  48-18  made at least annually and must be based on a budget adopted at
  48-19  least annually by the association.  The association's reserves and
  48-20  the unit owners' working capital contributions may not be used to
  48-21  pay operational expenses until the declarant control terminates.
  48-22        (b)  From the date of the initial assessment until declarant
  48-23  control terminates, or three years from a declarant's first
  48-24  conveyance of a unit, whichever is earlier, the declarant shall
  48-25  periodically pay to the association:
  48-26              (1)  an amount equal to all operational expenses of the
  48-27  association, less the operational expense portion of the
   49-1  assessments paid by unit owners other than declarant; or
   49-2              (2)  the common expense liability allocated to each
   49-3  unit owned by the declarant.
   49-4        (c)  Common expenses shall be assessed against all units
   49-5  conveyed, rented, or used as models or offices by the declarant and
   49-6  against all units owned by a declarant after termination of a
   49-7  declarant's control or three years from a declarant's first
   49-8  conveyance of a unit, whichever is earlier, in accordance with the
   49-9  common expense liability allocated to each unit.  A past due
  49-10  assessment or installment of an assessment may bear interest at a
  49-11  lawful rate established by the association.
  49-12        (d)  Except as provided by the declaration and Section
  49-13  82.107, a common expense for the maintenance, repair, or
  49-14  replacement of a limited common element shall be assessed against
  49-15  all the units as if it were for a general common element.
  49-16        (e)  If common expense liabilities are reallocated, common
  49-17  expense assessments and an assessment installment not yet due shall
  49-18  be recomputed in accordance with the reallocated common expense
  49-19  liabilities.
  49-20        (f)  A declaration may allow the accumulation of reserve
  49-21  funds for an unspecified period to provide for any anticipated
  49-22  expense of the condominium.
  49-23        (g)  This section does not prevent a declarant from
  49-24  collecting from a purchaser at closing the prorated amount of any
  49-25  expenses, such as insurance or taxes, that the declarant has
  49-26  prepaid to the association or directly to others on behalf of the
  49-27  unit that is being purchased.
   50-1        Sec. 82.113.  ASSOCIATION'S LIEN FOR ASSESSMENTS.  (a)  An
   50-2  assessment levied by the association against a unit or unit owner
   50-3  is a personal obligation of the unit owner and is secured by a
   50-4  continuing lien on the unit and on rents and insurance proceeds
   50-5  received by the unit owner and relating to the owner's unit.  In
   50-6  this section, "assessments" means regular and special assessments,
   50-7  dues, fees, charges, interest, late fees, fines, collection costs,
   50-8  attorney's fees, and any other amount due to the association by the
   50-9  unit owner or levied against the unit by the association, all of
  50-10  which are enforceable as assessments under this section unless the
  50-11  declaration provides otherwise.
  50-12        (b)  The association's lien for assessments has priority over
  50-13  any other lien except:
  50-14              (1)  a lien for real property taxes and other
  50-15  governmental assessments or charges against the unit unless
  50-16  otherwise provided by Section 32.05, Tax Code;
  50-17              (2)  a lien or encumbrance recorded before the
  50-18  declaration is recorded;
  50-19              (3)  a first vendor's lien or first deed of trust lien
  50-20  recorded before the date on which the assessment sought to be
  50-21  enforced becomes delinquent under the declaration, bylaws, or
  50-22  rules; and
  50-23              (4)  unless the declaration provides otherwise, a lien
  50-24  for construction of improvements to the unit or an assignment of
  50-25  the right to insurance proceeds on the unit if the lien or
  50-26  assignment is recorded or duly perfected before the date on which
  50-27  the assessment sought to be enforced becomes delinquent under the
   51-1  declaration, bylaws, or rules.
   51-2        (c)  The association's lien for assessments is created by
   51-3  recordation of the declaration, which constitutes record notice and
   51-4  perfection of the lien.  Unless the declaration provides otherwise,
   51-5  no other recordation of a lien or notice of lien is required.
   51-6        (d)  By acquiring a unit, a unit owner grants to the
   51-7  association a power of sale in connection with the association's
   51-8  lien.  By written resolution, a board may appoint, from time to
   51-9  time, an officer, agent, trustee, or attorney of the association to
  51-10  exercise the power of sale on behalf of the association.  Except as
  51-11  provided by the declaration, an association shall exercise its
  51-12  power of sale pursuant to Section 51.002.
  51-13        (e)  The association has the right to foreclose its lien
  51-14  judicially or by nonjudicial foreclosure pursuant to the power of
  51-15  sale created by this chapter or the declaration, except that the
  51-16  association may not foreclose a lien for assessments consisting
  51-17  solely of fines.   Costs of foreclosure may be added to the amount
  51-18  owed by the unit owner to the association.  A unit owner may not
  51-19  petition a court to set aside a sale solely because the purchase
  51-20  price at the foreclosure sale was insufficient to fully satisfy the
  51-21  owner's debt.
  51-22        (f)  The association may bid for and purchase the unit at
  51-23  foreclosure sale as a common expense.  The association may own,
  51-24  lease, encumber, exchange, sell, or convey a unit.
  51-25        (g)  The owner of a unit used for residential purposes and
  51-26  purchased by an association at a foreclosure sale of the
  51-27  association's lien for assessments may redeem the unit not later
   52-1  than the 90th day after the date of the foreclosure sale.  To
   52-2  redeem the unit, the owner must pay to the association all amounts
   52-3  due the association at the time of the foreclosure sale, interest
   52-4  from the date of foreclosure sale to the date of redemption at the
   52-5  rate provided by the declaration for delinquent assessments,
   52-6  reasonable attorney's fees and costs incurred by the association in
   52-7  foreclosing the lien, any assessment levied against the unit by the
   52-8  association after the foreclosure sale, and any reasonable cost
   52-9  incurred by the association as owner of the unit, including costs
  52-10  of maintenance and leasing.  On redemption, the association shall
  52-11  execute a deed to the redeeming unit owner.  The exercise of the
  52-12  right of redemption is not effective against a subsequent purchaser
  52-13  or lender for value without notice of the redemption after the
  52-14  redemption period expires unless the redeeming unit owner records
  52-15  the deed from the association or an affidavit stating that the
  52-16  owner has exercised the right of redemption.  A unit that has been
  52-17  redeemed remains subject to all liens and encumbrances on the unit
  52-18  before foreclosure.  All rents and other income collected from the
  52-19  unit by the association from the date of foreclosure sale to the
  52-20  date of redemption belong to the association, but the rents and
  52-21  income shall be credited against the redemption amount.  An
  52-22  association purchasing a unit at a sale foreclosing its lien may
  52-23  not transfer ownership of the unit during the redemption period to
  52-24  a person other than a redeeming owner.
  52-25        (h)  If a unit owner defaults in the owner's monetary
  52-26  obligations to the association, the association may notify other
  52-27  lien holders of the default and the association's intent to
   53-1  foreclose its lien.  The association shall notify any holder of a
   53-2  recorded lien or duly perfected mechanic's lien against a unit who
   53-3  has given the association a written request for notification of the
   53-4  unit owner's monetary default or the association's intent to
   53-5  foreclose its lien.
   53-6        (i)  This section does not prohibit the association from
   53-7  taking a deed in lieu of foreclosure or from filing suit to recover
   53-8  a money judgment for sums that may be secured by the lien.
   53-9        (j)  At any time before a nonjudicial foreclosure sale, a
  53-10  unit owner may avoid foreclosure by paying all amounts due the
  53-11  association.
  53-12        (k)  If, on January 1, 1994, a unit is the homestead of the
  53-13  unit owner and is subject to a declaration that does not contain a
  53-14  valid assessment lien against the unit, the lien provided by this
  53-15  section does not attach against the unit until the unit ceases to
  53-16  be the homestead of the person owning it on January 1, 1994.
  53-17        (l)  Foreclosure of a tax lien attaching against a unit under
  53-18  Chapter 32, Tax Code, does not discharge the association's lien for
  53-19  assessments under this section or under a declaration for amounts
  53-20  becoming due to the association after the date of foreclosure of
  53-21  the tax lien.
  53-22        (m)  If a unit owner is delinquent in payment of assessments
  53-23  to an association, at the request of the association a holder of a
  53-24  recorded lien against the unit may provide the association with
  53-25  information about the unit owner's debt secured by the holder's
  53-26  lien against the unit and other relevant information.  At the
  53-27  request of a lien holder, the association may furnish the lien
   54-1  holder with information about the condominium and the unit owner's
   54-2  obligations to the association.
   54-3        Sec. 82.114.  ASSOCIATION RECORDS.  (a)  The association
   54-4  shall keep:
   54-5              (1)  detailed financial records that comply with
   54-6  generally accepted accounting principles and that are sufficiently
   54-7  detailed to enable the association to prepare a resale certificate
   54-8  under Section 82.157;
   54-9              (2)  the plans and specifications used to construct the
  54-10  condominium except for buildings originally constructed before
  54-11  January 1, 1994;
  54-12              (3)  the condominium information statement prepared
  54-13  under Section 82.152 and any amendments;
  54-14              (4)  the name and mailing address of each unit owner;
  54-15              (5)  voting records, proxies, and correspondence
  54-16  relating to amendments to the declaration; and
  54-17              (6)  minutes of meetings of the association and board.
  54-18        (b)  All financial and other records of the association shall
  54-19  be reasonably available at its registered office or its principal
  54-20  office in this state for examination by a unit owner and the
  54-21  owner's agents.  An attorney's files and records relating to the
  54-22  association are not records of the association and are not subject
  54-23  to inspection by unit owners or production in a legal proceeding.
  54-24        (c)  The association shall, as a common expense, annually
  54-25  obtain an independent audit of the records.  Copies of the audit
  54-26  must be made available to the unit owners.
  54-27        (d)  A declarant shall furnish copies to the association of
   55-1  the information required by Subsection (a) on the date the first
   55-2  unit is sold.
   55-3        (e)  Not later than the 30th day after the date of acquiring
   55-4  an interest in a unit, the unit owner shall provide the association
   55-5  with:
   55-6              (1)  the unit owner's mailing address, telephone
   55-7  number, and driver's license number, if any;
   55-8              (2)  the name and address of the holder of any lien
   55-9  against the unit, and any loan number;
  55-10              (3)  the name and telephone number of any person
  55-11  occupying the unit other than the unit owner; and
  55-12              (4)  the name, address, and telephone number of any
  55-13  person managing the unit as agent of the unit owner.
  55-14        (f)  A unit owner shall notify the association not later than
  55-15  the 30th day after the date the owner has notice of a change in any
  55-16  information required by Subsection (e), and shall provide the
  55-17  information on  request by the association from time to time.
  55-18        Sec. 82.115.  ASSOCIATION AS TRUSTEE.  A third person dealing
  55-19  with an association in the association's capacity as a trustee may
  55-20  assume without inquiry the existence of trust powers and their
  55-21  proper exercise by the association.  A third person who lacks
  55-22  actual knowledge that an association is exceeding or improperly
  55-23  exercising its powers is fully protected in dealing with the
  55-24  association as if the association possessed and properly exercised
  55-25  the powers it purports to exercise.  A third person is not bound to
  55-26  ensure the proper application of trust assets paid or delivered to
  55-27  an association in its capacity as trustee.
   56-1        Sec. 82.116.  MANAGEMENT CERTIFICATE.  (a)  An association
   56-2  shall record in each county in which any portion of the condominium
   56-3  is located a certificate, signed and acknowledged by an officer of
   56-4  the association, stating:
   56-5              (1)  the name of the condominium;
   56-6              (2)  the name of the association;
   56-7              (3)  the location of the condominium;
   56-8              (4)  the recording data for the declaration;
   56-9              (5)  the mailing address of the association, or the
  56-10  name and mailing address of the person or entity managing the
  56-11  association; and
  56-12              (6)  other information the association considers
  56-13  appropriate.
  56-14        (b)  The association shall record a management certificate
  56-15  not later than the 30th day after the date the association has
  56-16  notice of a change in any information in a recorded certificate
  56-17  required by Subdivisions (a)(1)-(5).
  56-18        (c)  The association and its officers, directors, employees,
  56-19  and agents are not subject to liability to any person for delay or
  56-20  failure to record a management certificate, unless the delay or
  56-21  failure is wilful or caused by gross negligence.
  56-22        Sec. 82.117.  OBLIGATIONS OF UNIT OWNERS.  Without limiting
  56-23  the obligations of the unit owners and except as provided by the
  56-24  declaration, bylaws, rules of the association, or this chapter, the
  56-25  unit owner:
  56-26              (1)  shall pay assessments, interest, and other charges
  56-27  properly levied by the association against the owner or the owner's
   57-1  unit, and shall pay regular periodic assessments without demand by
   57-2  the association;
   57-3              (2)  shall comply with the declaration, bylaws, and
   57-4  rules of the association, including any amendments;
   57-5              (3)  shall pay for damage to the condominium caused by
   57-6  the negligence or wilful misconduct of the owner, an occupant of
   57-7  the owner's unit, or the owner or occupant's family, guests,
   57-8  employees, contractors, agents, or invitees; and
   57-9              (4)  is liable to the association for violations of the
  57-10  declaration, bylaws, or rules of the association, including any
  57-11  amendments, by the owner, an occupant of the owner's unit, or the
  57-12  owner or occupant's family, guests, employees, agents, or invitees,
  57-13  and for costs incurred by the association to obtain compliance,
  57-14  including attorney's fees whether or not suit is filed.
  57-15          (Sections 82.118 to 82.150 reserved for expansion
  57-16                SUBCHAPTER D.  PROTECTION OF PURCHASERS
  57-17        Sec. 82.151.  APPLICABILITY.  (a)  This subchapter applies to
  57-18  each unit subject to this chapter, except as provided by Subsection
  57-19  (b) or as modified or waived by the agreement of a purchaser of a
  57-20  unit in a condominium in which all units are restricted to
  57-21  nonresidential use.
  57-22        (b)  A condominium information statement or resale
  57-23  certificate need not be prepared or delivered in the case of:
  57-24              (1)  a gratuitous disposition of a unit;
  57-25              (2)  a disposition pursuant to court order;
  57-26              (3)  a disposition by a government or governmental
  57-27  agency;
   58-1              (4)  a disposition by foreclosure or deed in lieu of
   58-2  foreclosure; or
   58-3              (5)  a disposition that may be canceled at any time,
   58-4  for any reason, and without penalty.
   58-5        Sec. 82.152.  LIABILITY FOR CONDOMINIUM INFORMATION
   58-6  STATEMENT.  (a)  Except as provided by Subsection (b), a declarant
   58-7  shall prepare a condominium information statement before offering
   58-8  to the public any interest in a unit.
   58-9        (b)  A declarant may transfer responsibility for preparation
  58-10  of all or a part of the condominium information statement to a
  58-11  successor declarant or to a person in the business of selling real
  58-12  property who intends to offer units in the condominium for the
  58-13  person's own account.  On such transfer, the transferor shall
  58-14  provide the transferee with any information necessary to enable the
  58-15  transferee to prepare a condominium information statement.
  58-16        (c)  A declarant or other person in the business of selling
  58-17  real property who offers a unit for the person's own account to a
  58-18  purchaser shall provide a purchaser of a unit with a copy of the
  58-19  condominium information statement, as amended, before conveyance of
  58-20  the unit or the date of a contract of sale, whichever is earlier.
  58-21        (d)  The person preparing all or part of the condominium
  58-22  information statement is liable for any false or misleading
  58-23  statement or for any omission of material fact in the portion of
  58-24  the condominium information statement that the person prepared.  If
  58-25  a declarant did not prepare any part of a condominium information
  58-26  statement that the declarant delivers, the declarant is not liable
  58-27  for any false or misleading statement or any omission of material
   59-1  fact unless the declarant actually knew or should have known of the
   59-2  statement or omission.
   59-3        Sec. 82.153.  CONDOMINIUM INFORMATION STATEMENTS IN GENERAL.
   59-4  (a)  A condominium information statement must contain or accurately
   59-5  disclose:
   59-6              (1)  the name and principal address of the declarant
   59-7  and of the condominium;
   59-8              (2)  a general description of the condominium that
   59-9  includes the types of units and the maximum number of units;
  59-10              (3)  the minimum and maximum number of additional
  59-11  units, if any, that may be included in the condominium;
  59-12              (4)  a brief narrative description of any development
  59-13  rights reserved by a declarant and of any conditions relating to or
  59-14  limitations upon the exercise of development rights;
  59-15              (5)  copies of the declaration, articles of
  59-16  incorporation of the association, the bylaws, any rules of the
  59-17  association, and amendments to any of them, and copies of leases
  59-18  and contracts, other than loan documents, that are required by the
  59-19  declarant to be signed by purchasers at closing;
  59-20              (6)  a projected or pro forma budget for the
  59-21  association that complies with Subsection (b) for the first fiscal
  59-22  year of the association following the date of the first conveyance
  59-23  to a purchaser, identification of the person who prepared the
  59-24  budget, and a statement of the budget's assumptions concerning
  59-25  occupancy and inflation factors;
  59-26              (7)  a general description of each lien, lease, or
  59-27  encumbrance on or affecting the title to the condominium after
   60-1  conveyance by the declarant;
   60-2              (8)  a copy of each written warranty provided by the
   60-3  declarant;
   60-4              (9)  a description of any unsatisfied judgments against
   60-5  the association and any pending suits to which the association is a
   60-6  party or which are material to the land title and construction of
   60-7  the condominium of which a declarant has actual knowledge;
   60-8              (10)  a general description of the insurance coverage
   60-9  provided for the benefit of unit owners; and
  60-10              (11)  current or expected fees or charges to be paid by
  60-11  unit owners for the use of the common elements and other facilities
  60-12  related to the condominium.
  60-13        (b)  A budget under Subsection (a)(6) must be prepared in
  60-14  accordance with generally accepted accounting principles and a
  60-15  consideration of the physical condition of the condominium and be
  60-16  based on assumptions that, to the best of the declarant's knowledge
  60-17  and belief, are reasonable.  The budget must include:
  60-18              (1)  a statement of the amount included, or a statement
  60-19  that no amount is included, in the budget as a reserve; and
  60-20              (2)  the projected monthly common expense assessment
  60-21  for each type of unit.
  60-22        (c)  A declarant shall promptly amend the condominium
  60-23  information statement to reflect a material and substantial change
  60-24  in its contents.  If the change may adversely affect a prospective
  60-25  purchaser who has received a condominium information statement, the
  60-26  declarant shall furnish a copy of the amendment to the prospective
  60-27  purchaser before closing.
   61-1        Sec. 82.154.  CONDOMINIUMS WITH CONVERSION BUILDINGS.  If a
   61-2  building contains units that may be occupied for residential use,
   61-3  the condominium information statement of a condominium containing
   61-4  any conversion building must additionally contain:
   61-5              (1)  a dated statement by the declarant, based on a
   61-6  report by an independent architect or engineer, describing the
   61-7  present condition of all structural components and mechanical and
   61-8  electrical installations material to the use and enjoyment of the
   61-9  building;
  61-10              (2)  a dated statement by the declarant of the expected
  61-11  useful life of each item reported in Subdivision (1) or a statement
  61-12  that no representations are made in that regard; and
  61-13              (3)  a list of violations of building code or other
  61-14  governmental regulations of which the declarant has received notice
  61-15  and that have not been cured, together with the estimated cost of
  61-16  curing those violations.
  61-17        Sec. 82.155.  CONDOMINIUM SECURITIES.  A declarant satisfies
  61-18  all requirements relating to preparation of a condominium
  61-19  information statement if an interest in the condominium is
  61-20  currently registered with the Securities and Exchange Commission of
  61-21  the United States and if the declarant delivers to the purchaser a
  61-22  copy of the public offering statement filed with the commission.
  61-23        Sec. 82.156.  PURCHASER'S RIGHT TO CANCEL.  (a)  If a
  61-24  purchaser of a unit from a unit owner other than a declarant has
  61-25  not received from the seller the declaration, bylaws, and
  61-26  association rules required by Section 82.157 before the purchaser
  61-27  executes a contract of sale or if the contract does not contain an
   62-1  underlined or bold-print provision acknowledging the purchaser's
   62-2  receipt of those documents and recommending that the purchaser read
   62-3  those documents before executing the contract, the purchaser may
   62-4  cancel the contract before the sixth day after the date the
   62-5  purchaser receives those documents.  If a purchaser has not
   62-6  received a resale certificate before executing a contract of sale,
   62-7  the purchaser may cancel the contract before the sixth day after
   62-8  the date the purchaser receives the resale certificate or executes
   62-9  a waiver under Section 82.157, whichever occurs first.
  62-10        (b)  If a purchaser from a declarant has not received the
  62-11  condominium information statement before the purchaser executes a
  62-12  contract of sale or if a contract does not contain an underlined or
  62-13  bold-print provision acknowledging the purchaser's receipt of the
  62-14  condominium information statement and recommending that the
  62-15  purchaser read the condominium information statement before
  62-16  executing the contract, the purchaser may cancel the contract
  62-17  before the sixth day after the date the purchaser receives the
  62-18  condominium information statement.
  62-19        (c)  If a purchaser elects to cancel a contract under
  62-20  Subsection (a) or (b), the cancellation must be by hand-delivering
  62-21  written notice of cancellation to the declarant or selling unit
  62-22  owner or by mailing notice of cancellation by certified United
  62-23  States mail, return receipt requested, to the offeror or the
  62-24  offeror's agent for service of process within the five-day
  62-25  cancellation period.  Cancellation is without penalty, and all
  62-26  payments made by the purchaser before cancellation must be
  62-27  refunded.
   63-1        (d)  A selling unit owner may not require a purchaser to
   63-2  close until the purchaser is given the declaration, bylaws, and any
   63-3  association rules.  A declarant may not require a purchaser to
   63-4  close until a condominium information statement has been furnished
   63-5  to the purchaser.
   63-6        Sec. 82.157.  RESALE OF UNIT.  (a)  Except as provided by
   63-7  Subsection (c), if a unit owner other than a declarant intends to
   63-8  sell a unit, before executing a contract or conveying the unit, the
   63-9  unit owner must furnish to the purchaser a current copy of the
  63-10  declaration, bylaws, any association rules, and a resale
  63-11  certificate that must have been prepared not earlier than three
  63-12  months before the date it is delivered to the purchaser.  The
  63-13  resale certificate must be issued by the association and must
  63-14  contain the current operating budget of the association and
  63-15  statements of:
  63-16              (1)  any right of first refusal or other restraint
  63-17  contained in the declaration that restricts the right to transfer a
  63-18  unit;
  63-19              (2)  the amount of the periodic common expense
  63-20  assessment and the unpaid common expenses or special assessments
  63-21  currently due and payable from the selling unit owner;
  63-22              (3)  other unpaid fees or amounts payable to the
  63-23  association by the selling unit owner;
  63-24              (4)  capital expenditures, if any, approved by the
  63-25  association for the next 12 months;
  63-26              (5)  the amount of reserves, if any, for capital
  63-27  expenditures and of portions of those reserves designated by the
   64-1  association for a specified project;
   64-2              (6)  any unsatisfied judgments against the association;
   64-3              (7)  the nature of any pending suits against the
   64-4  association;
   64-5              (8)  insurance coverage provided for the benefit of
   64-6  unit owners;
   64-7              (9)  whether the board has knowledge that any
   64-8  alterations or improvements to the unit or to the limited common
   64-9  elements assigned to that unit violate the declaration, bylaws, or
  64-10  association rules;
  64-11              (10)  whether the board has received notice from a
  64-12  governmental authority concerning violations of health or building
  64-13  codes with respect to the unit, the limited common elements
  64-14  assigned to that unit, or any other portion of the condominium;
  64-15              (11)  the remaining term of any leasehold estate that
  64-16  affects the condominium and the provisions governing an extension
  64-17  or renewal of the lease; and
  64-18              (12)  the name, mailing address, and telephone number
  64-19  of the association's managing agent, if any.
  64-20        (b)  Not later than the 10th day after the date of receiving
  64-21  a written request by a unit owner, an association shall furnish to
  64-22  the selling unit owner or the owner's agent a resale certificate
  64-23  signed and dated by an officer or authorized agent of the
  64-24  association containing the information required by Subsection (a).
  64-25  A selling unit owner or the owner's agent is not liable to the
  64-26  purchaser for erroneous information provided by the association in
  64-27  the certificate.  If an association does not furnish a resale
   65-1  certificate or any information required in the certificate within
   65-2  the 10-day period, the unit owner may provide the purchaser with a
   65-3  sworn affidavit signed by the unit owner in lieu of the
   65-4  certificate.  An affidavit must state that the unit owner requested
   65-5  information from the association concerning its financial
   65-6  condition, as required by this section, and that the association
   65-7  did not timely provide a resale certificate or the information
   65-8  required in the certificate.  If a unit owner has furnished an
   65-9  affidavit to a purchaser, the unit owner and the purchaser may
  65-10  agree in writing to waive the requirement to furnish a resale
  65-11  certificate.  The association is not liable to a selling unit owner
  65-12  for delay or failure to furnish a resale certificate, and an
  65-13  officer or agent of the association is not liable for a delay or
  65-14  failure to furnish a certificate unless the officer or agent
  65-15  wilfully refuses to furnish the certificate or is grossly negligent
  65-16  in not furnishing the resale certificate.  Failure to provide a
  65-17  resale certificate does not void a deed to a purchaser.
  65-18        (c)  If a properly executed resale certificate incorrectly
  65-19  states the total of delinquent sums owed by the selling unit owner
  65-20  to the association, the purchaser is not liable for payment of
  65-21  additional delinquencies that are unpaid on the date the
  65-22  certificate is prepared and that exceed the total sum stated in the
  65-23  certificate.  A unit owner or the owner's agent is not liable to a
  65-24  purchaser for the failure or delay of the association to provide
  65-25  the certificate in a timely manner.
  65-26        (d)  A resale certificate does not affect:
  65-27              (1)  an association's right to recover debts or claims
   66-1  that arise or become due after the date the certificate is
   66-2  prepared; or
   66-3              (2)  an association's lien on a unit securing payment
   66-4  of future assessments.
   66-5        (e)  A purchaser, lender, or title insurer who relies on a
   66-6  resale certificate is not liable for any debt or claim that is not
   66-7  disclosed in the certificate.  An association may not deny the
   66-8  validity of any statement in the certificate.
   66-9        Sec. 82.158.  ESCROW OF DEPOSITS.  A deposit made in
  66-10  connection with the purchase or reservation of a unit from a
  66-11  declarant shall be placed in escrow and held in this state in an
  66-12  account designated for that purpose by a real estate broker, an
  66-13  attorney, a title insurance company licensed in this state, an
  66-14  independent bonded escrow company, or an institution whose accounts
  66-15  are insured by a governmental agency or instrumentality until
  66-16  delivered to the declarant at closing, delivered to the declarant
  66-17  because of the purchaser's default under a contract to purchase the
  66-18  unit, or refunded to the purchaser.  Escrow deposits may be placed
  66-19  in interest-bearing accounts, and the interest is payable as may be
  66-20  agreed in writing between the declarant and the purchaser.
  66-21        Sec. 82.159.  RELEASE OF LIENS.  Before conveying real
  66-22  property to an association, a declarant shall have that real
  66-23  property released from all liens the foreclosure of which would
  66-24  deprive unit owners of any right of access to or easement of
  66-25  support of the owners' units, and all other liens on that real
  66-26  property unless the condominium information statement describes
  66-27  certain real property that may be conveyed subject to liens in
   67-1  specified amounts.
   67-2        Sec. 82.160.  CONVERSION BUILDINGS.  (a)  A declarant of a
   67-3  condominium containing a conversion building shall give each
   67-4  residential tenant or subtenant in possession of a portion of a
   67-5  conversion building notice of the conversion at least 60 days
   67-6  before the date the declarant will require the tenant or subtenant
   67-7  in possession to vacate.  The notice must state generally the
   67-8  rights of tenants and subtenants under this section and shall be
   67-9  hand-delivered to the unit or mailed by certified United States
  67-10  mail, return receipt requested, to the tenant or subtenant at the
  67-11  address of the unit or any other mailing address provided by the
  67-12  tenant or subtenant.  The declarant may not require a tenant or
  67-13  subtenant to vacate on less than 60 days' notice, except for
  67-14  nonpayment of rent, waste, or conduct that violates the rental
  67-15  agreement or is illegal, and the terms of a tenancy may not be
  67-16  altered during that period.  Failure of a declarant to give notice
  67-17  as required by this section is a defense to an action for
  67-18  possession.
  67-19        (b)  If a notice of conversion specifies a date by which a
  67-20  unit or proposed unit must be vacated and otherwise complies with
  67-21  Section 24.005, the notice also constitutes legal notice to vacate
  67-22  on that date for purposes of Section 24.005.  A declarant may not
  67-23  terminate a lease in violation of its terms.
  67-24        (c)  Unless expressly authorized by a rental agreement, a
  67-25  declarant may not make substantial alterations to the interior of a
  67-26  leased premises for purposes of a condominium conversion.
  67-27        Sec. 82.161.  EFFECT OF VIOLATIONS ON RIGHTS OF ACTION AND
   68-1  ATTORNEY'S FEES.  (a)  If a declarant or any other person subject
   68-2  to this chapter violates this chapter, the declaration, or the
   68-3  bylaws, any person or class of persons adversely affected by the
   68-4  violation has a claim for appropriate relief.
   68-5        (b)  The prevailing party in an action to enforce the
   68-6  declaration, bylaws, or rules is entitled to reasonable attorney's
   68-7  fees and costs of litigation from the nonprevailing party.
   68-8        Sec. 82.162.  LABELING OF PROMOTIONAL MATERIAL.  If any
   68-9  improvement contemplated in a condominium is labeled "NEED NOT BE
  68-10  BUILT" on a plat or plan or is to be located within a portion of a
  68-11  condominium with respect to which the declarant has reserved a
  68-12  development right, no promotional material that describes or
  68-13  depicts the improvement may be displayed or delivered to
  68-14  prospective purchasers unless the description or depiction of the
  68-15  improvement is conspicuously labeled or identified as "NEED NOT BE
  68-16  BUILT."
  68-17        Sec. 82.163.  DECLARANT'S OBLIGATION TO COMPLETE AND RESTORE.
  68-18  The declarant shall complete all improvements labeled "MUST BE
  68-19  BUILT" on plats or plans.  The declarant is subject to liability
  68-20  for the prompt repair and restoration, to a condition compatible
  68-21  with the remainder of the condominium, of any portion of the
  68-22  condominium affected by the exercise of rights reserved pursuant to
  68-23  or created under this chapter.
  68-24        Sec. 82.164.  LOANS AS ELIGIBLE INVESTMENTS.  (a)  A loan on
  68-25  a condominium unit and the undivided interest in the common
  68-26  elements is an eligible investment for a bank, savings and loan
  68-27  association, trust company, life insurance company, or other
   69-1  lending institution that is authorized to make real property loans,
   69-2  and for an administrator, guardian, executor, trustee, individual,
   69-3  partnership, corporation, or other fiduciary that is authorized to
   69-4  make real property loans.  In determining eligibility, the
   69-5  existence of a prior lien for taxes, assessments, or other similar
   69-6  charges not yet delinquent may not be considered in determining
   69-7  whether a mortgage or deed of trust on the security is a first
   69-8  lien.  This section does not change any provision of law that would
   69-9  otherwise be applicable that limits mortgage investments based on a
  69-10  special fraction or percentage of the value of the mortgaged
  69-11  property.
  69-12        (b)  An association's lien for assessments does not make a
  69-13  condominium unit ineligible for loans for which the unit would
  69-14  otherwise qualify.
  69-15        SECTION 2.  The heading to Chapter 81, Property Code, is
  69-16  amended to read as follows:
  69-17                   CHAPTER 81.  CONDOMINIUMS CREATED
  69-18              BEFORE ADOPTION OF UNIFORM CONDOMINIUM ACT
  69-19        SECTION 3.  Subchapter A, Chapter 81, Property Code, is
  69-20  amended by adding Section 81.0011 to read as follows:
  69-21        Sec. 81.0011.  APPLICABILITY.  (a)  This chapter applies only
  69-22  to a condominium regime created before January 1, 1994.  A
  69-23  condominium regime created on or after January 1, 1994, is governed
  69-24  by Chapter 82.
  69-25        (b)  A condominium regime created before January 1, 1994, to
  69-26  which this chapter applies is also governed by Chapter 82 as
  69-27  provided by Section 82.002.
   70-1        SECTION 4.  This Act takes effect January 1, 1994.
   70-2        SECTION 5.  The importance of this legislation and the
   70-3  crowded condition of the calendars in both houses create an
   70-4  emergency and an imperative public necessity that the
   70-5  constitutional rule requiring bills to be read on three several
   70-6  days in each house be suspended, and this rule is hereby suspended.